Bitcoin crashes below $62K as billions liquidated — time to buy the panic dip
Thesis
When overleveraged traders get wiped out in a cascade, it often flushes out all the weak hands and creates a short-term bottom. The U.S. Treasury is also actively working on a strategic Bitcoin reserve, which provides a strong fundamental backstop that could attract institutional buyers. With prices near $62,000—levels not seen since February—the setup looks ripe for a relief bounce as panic selling subsides and government policy support kicks in.
Strategy approach
Build a rule-based strategy that enters long BTCUSDT on H4 when RSI(14) drops below 30 (oversold) and the price is trading between 5-10% below the 20-day moving average. Require the previous session's candle to show a long lower wick (at least 2x the body). Set a 7-day max hold, a fixed 5% stop-loss below entry, and a 2:1 risk-reward take-profit.