A closely-watched crypto trader and advisor says he’s followed through on a plan to buy Bitcoin (BTC) at a key level of support.
Scott Melker of Texas West Capital says he cautiously executed number of bids at “the red circle” – an area in the $7,000 range that he’s been tracking for weeks. His analysis is based on Fibonacci ratios, which are designed to help traders identify levels of support and resistance.
“I said that I would buy heavily here and my bids filled overnight.
This was the entry I have been discussing for weeks – a golden pocket retrace, 70.5% OTE, and retest of the weekly descending channel. Going to set the stop tight and let it play out.”
Despite the successful bids, Melker says he has exited many positions in both the traditional and cryptocurrency markets, opting to sit on the sidelines with a large cash position.
“I am happily on the crypto sidelines with my trading portfolio and heavier in cash than ever before with my equity portfolio. I don’t feel like it’s time to be a hero. Full capital preservation mode.
I have never felt better about being mostly in cash on equities than I do at this moment.”
Melker says a number of his small and “ancient” bids for Amazon (AMZN) also executed in the last 24 hours – part of his long term retirement goals.
“The smoke cleared and it seems my ancient Amazon bids (small order, I average into Amazon for retirement) hit.
I missed by a few dollars on Microsoft bids that I set a few weeks ago. Amazon bids were at the purple line. Will it hold? Really not sure.
The analyst has been essentially live blogging the global financial crisis, offering a trader’s take on the historic worldwide reversal.
He’s warning fellow traders in all markets to be extremely cautious and points out the difficulty in trying to time the moment any assets hit a bottom.
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