FX.co ★ Trading tips for beginner traders. Overview of yesterday's trading in crypto market. Bitcoin on July 24, 2023.

Analysis and Bitcoin trading tips

Bitcoin tested $29,259 in the first half of the day, which coincided with the MACD being in a sell area. It confirmed the correct market entry point for short positions. However, Bitcoin did not decline. The second test of $29,259 coincided with the MACD rising above zero, which could have been a good entry point for long positions according to the outlook's scenario two. However, any strong growth of BTC failed to materialize, and the cryptocurrency continued to trade near that area.

In notable news, the head of the Securities and Exchange Commission, Gary Gensler, requested additional funding for the regulator, citing the need to protect American from the negative influence of the digital asset market. Meanwhile, Tesla is reportedly planning to accept Bitcoin payments for its cars once again, according to the recently updated source code of the company's website. On the technical side, Bitcoin bears have been trying to break through the lower boundary of the sideways channel for quite a while now, and every attempt at growth has resulted in a sell-off. All this indicates that the cryptocurrency is very likely to break below the major support level of $29,500, which would lead to a big sell-off. To prevent this, bulls will need to regain $30,000. Today, Today, I will make trading decisions based on the realization of the outlook's first scenarios.

Buy signal

Scenario 1: You can go long on Bitcoin today once it reaches the entry point at 29,939 (the green line on the chart), targeting 30,263 (the thicker green line on the chart). Once the asset reaches the area of 30,263, you should close the long position and open a short position. Bitcoin is expected to increase while trading is carried out above the lower boundary of the sideways channel. Caution! Make sure the MACD indicator is above zero before going long on Bitcoin.

Scenario 2: long positions on Bitcoin can also be opened if the cryptocurrency tests 29,793 two times in a row while the MACD indicator is in the oversold area. This will limit the trading instrument's downward potential and lead to an upward reversal in the market. In such a scenario, Bitcoin might reach 29,939 and 30,263.

Sell signal

Scenario 1: short positions on Bitcoin can be opened after BTC hits 29,793 (the red line on the chart), which would lead to a rapid decline. The level of 29,567 will be a key target level for bearish traders, where you should close your position and open a long position immediately, expecting BTC to reverse upwards. The pressure on Bitcoin will increase if BTC breaks below the lower boundary of the wide sideways channel. Caution! Make sure the MACD indicator is below zero before going short on Bitcoin.

Scenario 2: you can also go short on BTC once Bitcoin tests 29,939 two times in a row while the MACD indicator is in the overbought area. This will limit the trading instrument's upside potential and lead to a downward reversal in the market. In such a scenario, Bitcoin might decline to 29,793 and 29,567.

Indicators on charts:

A thin green line indicates a buy entry point.

A thick green line indicates a point where you can set a Take Profit order or lock in profits manually because the price will unlikely go above this level.

A thin red line indicates a sell entry point.

A thick red line is the estimated price level where you should place a Take Profit order or close positions manually because the quote is unlikely to fall below this mark.

MACD. When entering the market, it is important to pay attention to the indicator's overbought and oversold zones.

Important! Novice crypto traders should be very careful when deciding to enter the market. Before the release of important fundamental data, you should stay out of the market in order to avoid sharp price fluctuations. If you decide to trade during news releases, make sure to always place a stop order to minimize losses. Without the order, you may quickly lose your entire deposit, especially if you do use money management but trade large volumes.

Remember that in order to succeed in the market, you should have a clear trading plan, like the one I presented above. Spontaneous decisions based on the current state of the market are a losing strategy for an intraday trader.