The price is now reaching the support range at $6000~6050, which previously took more than 5 attempts (Daily chart) to break through, now we’re going to retest this support once again and see if it able to hold. For long-term investing perspective, this would be one of my buying levels, given if the price could hold after several tests and a sign of reversal with bullish volume confirmation. If this level doesn’t hold, we might have a further dip down to $5500, the Fibonacci 0.786 inline should hint a better support. There are always possibilities for it to fall way below the suggested supports.
What’s a good time to buy?
My buying-the-dip range would be from $6050 to $5500, and I’ll be scaling in instead of buying all at once, multiple retests of supports and bullish volume it’s that shows reversal signals is a good way to confirm a purchase. However, it still depends on how aggressive or conservative you are. If you’re aggressive, like me, you can buy when there are little reversal signals, but with a tight stop-loss. If you’re conservative, you will want to wait for a strong reversal signals like higher lows and higher highs.
Remember to follow your principle that’s tuned to your risk-tolerance level, and be consistent. Greater rewards come with greater risks, there’s no free lunch.