The volatile nature of the cryptocurrency markets prompts active traders to rely on technical analysis to guide their decisions with regard to taking the right positions. Even though many exchange platforms offer various features such as short positions, rolling stops, puts, calls, and hedges, the traditional buying on the dip is still very popular among Bitcoin traders.

There are two types of buying. The first is to buy while the price is at its bottom. The second type is to buy when the price is at its peak. While the first is still recommended by many, the second is not advised due to the fact that the majority of traders do not have the patience to wait for the price to drop, especially when there are much higher buy pressure on the price. Therefore, when the price is at its peak, a trader will have to wait for the price to drop to trigger his buy orders. During such a trade, a small portion of the total buy price will be paid in order to create and trigger the orders in the Bitcoin market. In such a situation, there is no guarantee that the orders will be triggered in order to make a profit.

In technical analysis, an ascending channel often acts as the beginning of a bull market, when the price of the asset is expected to continue moving up, possibly at a steady pace or with a series of ‘mini rallies’. This channel is formed by two trendlines. The upper trendline is drawn by finding the previous high of the asset, or the price level at which the highest number of candles were bought on the chart, and drawing a horizontal line to that point. The lower trendline is drawn by finding the previous low of the asset, or the price level at which the lowest number of candles were sold on the chart, and drawing a horizontal line to that point.

As to how long active traders hold their ascending channel positions, this is a matter of following market sentiment and trading volumes very closely. For the most part, it does not take long.