Price of the most popular cryptocurrency   – Bitcoin – is now floating near psychological support at 500USD. Last time price was touching this levels around middle-July (and after rebound rallied in the vicinity of 675USD). Since then price was constantly falling and finally, after reaching 61.8% retracement of march high, slumped during two sessions and lost almost 75USD!

You can feel negative market pressure – investors are selling their Bitcoins and the bearish momentum is strengthen by the speculators and strong net short positoning. But such a slump is not a reason to dump Bitcoin. Looking from technical site, BTC/USD pair will have to fight few quite nice support zones. The first at 479USD (38.2% Fibo retracement) and the next one at 425USD (23.6% Fibo retracement). The latter capped price for a long time in April/May 2014 (orange zone). After successful defense and bouncing from the support line, price rallied upward.

BTC/USD chart - D1 TF | source: own
BTC/USD chart

So what for now? If you are speculator – play short and put TP somewhere above 425.21USD. If you are investor and you are worried that you will lost your money, do not be! Just wait for a slump (current sell off is still not a scary one) and buy new coins after breaking 23.6% Fibo retracement.

Remember! Buy on the lows, sell on the highs! 

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