Where BTC ultimately bottoms on this pullback depends on MSTR. In the short term, MSTR has some support at 135–133: 135.65 is the 3-day EMA 52, and 133.5 is the 5-day EMA 24. On Friday during the day, I expected it to dip below 137 and hold around 133, which is what happened. But MSTR has only paused its decline for now; the bottoming signal on the 1-day chart is temporary. The 2- and 3-day charts are still in a downtrend, so after a brief rebound, it will likely fall further.
137 is the 0.382 retracement level of the major 80–173 swing. After breaking below this level this week, the next lower buy-the-dip zone that could trigger a strong rebound is around 126.5 (the 0.50 level). So it makes sense to place buy orders in advance around 127.85–126.65. If it breaks above 129, the rebound should quickly accelerate toward 137–141, making this a potentially profitable long. I wouldn’t recommend opening new shorts below 137, because shorts below the 0.382 level can easily get caught in a reversal once the price stabilizes. At the lowest, I’d wait until it rebounds to around 141.5 before opening another short position.
Below 131, you can start buying the dip in stages at 127 and 124–122.
137 is the 0.382 retracement level of the major 80–173 swing. After breaking below this level this week, the next lower buy-the-dip zone that could trigger a strong rebound is around 126.5 (the 0.50 level). So it makes sense to place buy orders in advance around 127.85–126.65. If it breaks above 129, the rebound should quickly accelerate toward 137–141, making this a potentially profitable long. I wouldn’t recommend opening new shorts below 137, because shorts below the 0.382 level can easily get caught in a reversal once the price stabilizes. At the lowest, I’d wait until it rebounds to around 141.5 before opening another short position.
Below 131, you can start buying the dip in stages at 127 and 124–122.