FX.co ★ Bitcoin: simple trading tips for novice investors on August 4. Analysis of yesterday trades in crypto market

Tips for trading BTC

A test of 29,057 occurred at a time when the MACD was in the negative area, which was a confirmation of the correct entry point into short positions. However, there was no significant downward movement. In the afternoon, a test of 29,263 at a time when the MACD was in the positive zone. It seemed to be a good entry point into long positions. Yet, after a jump to 29,360, the pressure on the trading instrument returned. As a result, traders failed to reap a big profit. The fact that Bitcoin continues to trade below 29,500 indicates a high chance of further decline. Today, its trajectory will depend on the market reaction to the US labor market data, especially on the NFP report for July. A strong labor market will unfeminine demand for risk assets, weakening Bitcoin. The Fed may continue its monetary tightening amid tight labor market conditions. The regulator is afraid of a new surge in inflation. If the report shows a slowdown in the growth of new jobs, Bitcoin may return to 29,500. At this level, the bulls could try to build a new uptrend.

Given that the chances of buyers and sellers are equal, I am going to trade according to scenario No. 1.

Buy signal

Scenario No.1: you can buy BTC today if the price reaches 29,263 (green line on the chart). It may grow to 29,585 (thicker green line on the chart). At the level of 29,585, I recommend closing long positions and opening short ones in the opposite direction. Bitcoin could grow markedly after a weak report on the US labor market. Important! Before buying, make sure that the MACD indicator is above the zero level.

Scenario No.2: you can also go long today in the case of two consecutive price tests of 29,058. This will limit the downward potential of the trading instrument and lead to a market reversal. It may rise to 29,263 and 29,585.

Sell signal

Scenario No. 1: it is possible to sell BTC today only if the price touches 29,058 (the red line on the chart), which may lead to a rapid decline. The key level is located at 28,780 where I recommend exiting sales as well as opening long positions in the opposite direction. The pressure on BTC will increase if NFP data is positive. Important! Before selling, make sure that the MACD indicator is below the zero mark and it has just started to dip from it.

Scenario No. 2: you can also sell BTC today in the case of two consecutive tests of 29,263. This will limit the upward potential of the trading instrument and lead to a market reversal. The instrument is projected to slide to the levels of 29,058 and 28,780.What's on chart:

The thin green line is the entry point where you can buy a trading instrument;

The thick green line is the estimated price where you can place a Take Profit order or lock in profits manually as BTC is unlikely to rise above this level;

The thin red line is the entry point where you can sell the trading instrument ;

The thick red line is the estimated price where you can place a Take Profit order or lock in profits manually as the price is unlikely to decline below this level;

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

Important. Novice traders need to make very careful decisions when entering the market. Before the release of important fundamental reports, it is better to stay out of the market to avoid losses due to sharp fluctuations in the exchange rate. If you decide to trade during the news release, always place Stop Loss orders to minimize losses. Without placing Stop Loss orders, you can lose the entire deposit very quickly, especially if you do not use money management but trade in large volumes. Remember that for successful trading it is necessary to have a clear trading plan, following the example of the one I presented above. Relying on spontaneous trading decisions based on the current market situation is a losing strategy of an intraday trader.