Tips for trading BTC
Yesterday, Bitcoin did not move according to the plan, failing to give any market entry signals. The US inflation data had no impact on BTC, disappointing traders who were betting on a bullish trend, especially after favorable growth earlier this week, approaching $30,000. Today, Bitcoin's direction is unlikely to see significant changes, mostly maintaining a sideways movement. Nonetheless, it is better to stick to scenario 1.
Buy signal
Scenario 1: Today, you may buy Bitcoin when it reaches the entry point near $29,480 (green line on the chart), aiming for growth toward $29,780 (thicker green line on the chart). It is better to close long positions and open short ones near $29,780. Expecting substantial Bitcoin growth today might be overly optimistic, but a gradual upward movement toward $30,000 may occur. Important! Before buying, make sure that the MACD indicator is above zero.
Scenario 2: Another opportunity to buy Bitcoin today arises if the price tests $29,330 twice. This would limit the downward potential of the trading instrument and trigger an upward market reversal. We can also anticipate a rise towards the opposing levels of $29,480 and $29,780.
Sell signal
Scenario 1: Selling Bitcoin today is possible after $29,330 (red line on the chart) is breached, leading to a rapid decline in the trading instrument. Bears' key target would be $29,037, where you may close short positions and open long ones. Pressure on Bitcoin will intensify if bulls show weak activity near the daily peak range. Important! Prior to selling, make sure that the MACD indicator is below zero.
Scenario 2: Selling Bitcoin today can also be considered if the price tests $29,480 twice. This would limit the upward potential of the trading instrument and result in a downward market reversal. We can expect a decrease toward the opposing levels of $29,330 and $29,037.
What's on the chart:
Thin green line: Entry price for purchasing the trading instrument.
Thick green line: Estimated price at which to set a take profit order or lock in profits manually, as further growth beyond this level is unlikely.
Thin red line: Entry price for selling the trading instrument.
Thick red line: Estimated price at which to set a take profit order or lock in profits manually, as further decline below this level is improbable.
MACD Indicator: When entering the market, consider overbought and oversold zones.
Important! Novice cryptocurrency market traders should exercise extreme caution when making market entry decisions. It's best to stay out of the market before major fundamental reports to avoid exposure to sharp course fluctuations. If you choose to trade during news releases, always place stop orders to minimize losses. Without stop orders, you could quickly deplete your deposit, especially if you neglect money management and trade with large volumes.
Remember that successful trading requires a clear trading plan, like the one provided above. Making spontaneous trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.