3iQ Corp, a Canada based company received confirmation from the Ontario Securities Commission (OSC) in order to list ‘The Bitcoin Fund’ on Canada’s stock exchange. This is expected to be done by the end of 2019.
While the news has been positive, the Bitcoin price movement has been confusing, to say the least. The price has been gradually decreasing since October 25’s rapid upward move.
Cryptocurrency trader @davethewave speculated that the ideal buying price for Bitcoin is at $6700. According to our analysis, the ideal buying price may be in the low $7000s or high $6000s.
Additionally, he suggested that averaging in would be ideal — but what does that mean? Let’s analyze both the ideal price and the concept of averaging in.
Pitchfork & Volume
@davthewave used a pitchfork to create a descending channel and determine future price movement.
The ideal buy zone falls within the lower portion of the channel (blue). Since it is descending, the ideal buy price is decreasing as time goes by.
When using the Volume profile indicator, we can see that the strongest buy area is found near $6500 — coinciding well with the buy zone given by the channel.
A decrease below this level could trigger a rapid Bitcoin price decrease.
Long-Term Bitcoin Price Analysis
Using a logarithmic chart and curved trendlines, we can see that the support line is currently at $6300 and is slowly moving upward. Therefore, we agree that the ideal buying price may be around $6700.
The concept of averaging-in means placing several orders around an average price. One example of the $6700 price would mean buying with 1/3 of the total amount of your order at $6900, 1/3 at $6700 and 1/3 at $6500.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Did you know you can trade sign-up to trade Bitcoin and many leading altcoins with a multiplier of up to 100x on a safe and secure exchange with the lowest fees — with only an email address? Well, now you do! Click here to get started on StormGain!