So here's a simple strategy based on pure fundamentals of support zones.
BTC has broken below support of 10800, and it's currently trying to break back to the upside above 11,000. If this is successful, I assume there would be selling action between 11200 and 11600 and we will fall back down below 10800 and retest bottoms.
I'm not expecting the bottom of 9700 to hold.
However, market sentiment seems to be short-term , but long-term . So many traders are buying below 10500 based on the previous low of 9700. So I believe we will gradually go down, rather than have a large, quick sell-off, as there will be more buy support than normal.
This would be a great time to scale into your long positions. From 10,000 downwards. There is literally no support until approximately 7500, so we could potentially get there. If we do, I would start buying big. At this stage, we may start seeing panic selling and have a sharper fall to support around the 4500 level. If this is the case, I would go all in at this time.
This is a relatively low-risk strategy, scaling in as we lower in price with the assumption that in the long-term we will bounce back up above 11,000.
If we drop below 7500 it could get very ugly as many (if not most) would not be expecting it to and panic may set in. At this time we would have to reassess what's going on. But for now I think this strategy is sound. It's a long-term strategy with a view bitcoin will settle and grow above 10,000 again in the future.
I'll keep the post updated with my thoughts as we progress.