THETA Provides Dip-Buy Opportunity

My recent blog highlighted Theta as a cryptocoin of interest. The current market correction has been quite significant for most cryptocurrencies , bitcoin being just one example down from a recent ceiling high of $65k to a wallet emptying $50k. Theta is not exempt from this current bear run and so I thouht you might like this short article in a recent Cryptohopper. 

THETA, 4H

THETA has had one of the best uptrends of all cryptocurrencies and is currently up 12,200% since January 1, 2020. In other words, if you had invested just $1,000 in THETA last year you would now have $120,000 (enough for a second-hand Lamborghini). The token is now heading to the support level due to the general market correction and may soon bounce back

When to Enter?

The next support level for THETA is close to the current price, at $8. THETA has previously visited this level but bounced up immediately. If Bitcoin continues its downtrend, then THETA will probably reach this price level or even break below it if worse comes to worst. 

If you don’t want to enter before a reversal has been confirmed, the Stochastics is here to the rescue! The Stochastics is a momentum oscillator that identifies overbought and oversold zones. When the Stochastics is below 20, the price is said to be oversold, and many traders expect it to bounce back. However, in severe crashes, the price can be oversold for a long time, leading to large losses. For example, in the March crash last year, the price continued to drop a further 50% after the Stochastics on the 4h chart signaled oversold.

Buying the Dip

Here is where the Stochastics with region crossovers come in. The indicator will enter a position when the Stochastics cross from the oversold zone back into neutral. Thus ensuring that the worst has passed and the price is recovering. You can use the Stochastics with region crossovers together with support. Therefore when the price is around the support level, and the indicator displays a buy signal, that is probably an appropriate entry point. 

Please keep in mind that no indicator is perfect, and the Stochastics with region crossovers can also provide fake signals.