Bitcoin crashes below $62k as government reserve plan offers a lifeline — prepar
Thesis
Bitcoin has fallen sharply to levels not seen since February, largely due to traders being forced to sell their positions all at once. This type of forced selling often clears out the overly-optimistic crowd, creating a solid floor for the price to bounce from. Adding to the rebound potential, the U.S. government just signaled it is moving forward with plans to create a national Bitcoin stockpile, which brings massive long-term legitimacy and demand to the market.
Strategy approach
Build a mean-reversion strategy for BTCUSDT on the 4-hour (H4) timeframe. Enter a long position when the price touches the lower Bollinger Band (20, 2) and the RSI(14) drops below 30. Add an additional entry condition requiring the price to be above the 200-day simple moving average on the daily chart to ensure the long-term trend is still intact. Exit the position when RSI(14) crosses above 70, or set a stop loss at 5% below the entry price.