FX.co ★ Tips for trading Bitcoin

Following the release of US inflation data, Bitcoin traded downwards, generating a strong bearish wave.

Although the quotes bounced back, the current situation still calls for a further downward movement, targeting the update of the June buying area.

Having a three-wave pattern (ABC), where wave A represents yesterday's short-selling initiative, traders could open short positions with a 50% retracement based on the Fibonacci levels. Limit the risks at 26300, and then take profit upon the breakdown of 25400.

The trading idea came from the framework of the "Price Action" and "Hunt for Stops" strategies.

Good luck in trading and manage your risks. Have a great day ahead!