Bitcoin is crashing but the US government is buying — prepare for a rebound trad
Thesis
Bitcoin has crashed to its lowest level since February as leveraged traders are wiped out in a mass liquidation event. While the panic is real, the US government just signaled it is moving forward with plans for a strategic Bitcoin reserve. This creates a strong underlying fundamental catalyst that flies in the face of the current panic. When fear is at its highest but a major positive policy shift is underway, it often sets the stage for a sharp rebound.
Strategy approach
Build a counter-trend long strategy for Bitcoin (BTCUSDT) on the 4-hour (H4) timeframe. Look for a bullish MACD crossover while the RSI(14) is below 35 (oversold). Enter long on the close of the crossover candle. Set a stop loss at 2 ATR below the entry swing low, and a take profit at the previous day's high.