Overview of market on Friday and trading tips
The test of 29,287 occurred at the moment when the MACD indicator was in the buying area. This confirmed the correct entry point for buy positions. As a result, Bitcoin's rise was capped in the area of 29,500. So far, no major changes have taken place in the crypto market. The fact that the price cannot rebound to the level of 29,550 in any way casts doubt on the bullish scenario without a further downward correction. Such developments look realistic. As long as the token is trading below 29,550, we can expect a major sell-off in the market. So, when making decisions, I will rely more on the implementation of scenarios #1 and #2 about selling. No fundamental and important statistics will be released in a few days. Hence, any correction in the US stock market will reduce demand for risky assets, including Bitcoin.
Buy signal
Scenario #1: You can buy Bitcoin today when the price reaches the entry point around 29,435 (the green line on the chart). We reckon the price could rise to the level of 29,672 (the thicker green line on the chart). I recommend closing buy positions in the area of 29,672 and opening short ones in the opposite direction. Bitcoin is unlikely to develop a strong rally today. Important! Before buying, make sure that the MACD indicator is above zero.
Scenario #2: We can also buy Bitcoin today in case the level of 29,327 is tested twice straight. This will limit the downward momentum of the trading instrument and lead to an upward reversal of the market. We can expect growth to opposite levels 29,435 and 29,672.
Sell signal
Scenario #1: Selling Bitcoin today is possible only after the level of 29,327 is updated (the red line on the chart). This will lead to a rapid decline in the trading instrument. The key target of the sellers will be the level of 29,123, where I recommend exiting short positions, as well as opening buy positions immediately in the opposite direction. Bitcoin will remain under selling pressure as long as the token is trading below 26,500. Important! Before selling, make sure that the MACD indicator is below zero.
Scenario #2: Another option to sell Bitcoin today is the case when the price of 29,435 is tested twice. This will limit the upward potential of the trading instrument and lead to a reverse turn of the market down. We expect a decline to the opposite level 29,327 and 29,123.
What's on the chart:
Thin green line is the entry price at which you can buy the trading instrument.
Thick green line is the price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
Thin red line is the entry price at which you can sell the trading instrument.
Thick red line is the price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.
MACD line: it is important to be guided by overbought and oversold areas when entering the market
Important: Novice traders in the cryptocurrency market need to be very cautious when making decisions to enter the market. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade with large volumes.
Remember, for successful trading, it is necessary to have a clear trading plan, similar to the one I presented above. Spontaneously making trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.