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FX.co ★ Bitcoin: simple trading tips for novice traders on August 23. Analysis of yesterday's crypto market transactions

Bitcoin: simple trading tips for novice traders on August 23. Analysis of yesterday's crypto market transactions

Tips for trading BTC

When the price hit $25,995, the moment coincided with MACD being in the negative zone and starting its downward movement. As a result, BTC dropped to around $25,797, and buyers became more active. During today's Asian session, bears attempted to push the price down to $25,797 again, but bulls managed to drag BTC higher near the new low, maintaining market balance. Sharp comments from Fed representatives about inflation and interest rates yesterday weakened demand for risky assets, affecting the cryptocurrency market as well. The fact that traders still hold hope for the US stock market's growth after Federal Reserve Chair Jerome Powell's Friday speech in Jackson Hole will allow Bitcoin to hold steady at current levels. Until key speeches from American policymakers, there is no reason to sell BTC, but it is better to rely on scenario 1.

Bitcoin: simple trading tips for novice traders on August 23. Analysis of yesterday's crypto market transactions

Buy signal

Scenario 1: One can buy Bitcoin today at the entry point near $26,184 (green line on the chart) is reached, aiming for growth towards the level of $26,452 (thicker green line on the chart). It would be better to close long positions near $26,452 and open opposite trades. Counting on a strong Bitcoin rise is only possible within a correction framework, as bulls are unlikely to sway the market in their favor. Important! Before buying, make sure that the MACD indicator is above zero.

Scenario 2: You can also buy Bitcoin today if the price tests $25,995 twice. This may limit the downward potential of the trading instrument and lead to a market upward reversal. We can expect growth towards the opposite levels of $26,184 and $26,452.

Sell signal

Scenario 1: You may sell Bitcoin today after the level of $25,995 (red line on the chart) is retested, resulting in a rapid decline of the trading instrument. Sellers' key target will be the level of $25,668, where it is better to close short positions and open long ones. Pressure on Bitcoin is likely to persist. Important! Before selling, make sure that the MACD indicator is below zero.

Scenario 2: One can also sell Bitcoin today if the price tests $26,184 twice. This may limit the ascending potential of the trading instrument and lead to a market downward reversal. We can expect a decrease towards the opposite levels of $25,995 and $25,668.

Bitcoin: simple trading tips for novice traders on August 23. Analysis of yesterday's crypto market transactions

What's on the chart:

Thin green line – entry price for buying the trading instrument.

Thick green line – presumed price level for placing take-profit orders or locking in profits manually, as further growth beyond this level is unlikely.

Thin red line – entry price for selling the trading instrument.

Thick red line – presumed price level for placing take-profit orders or locking in profits manually, as further decrease below this level is improbable.

MACD Indicator. When entering the market, it's crucial to consider overbought and oversold zones.

Important: Novice cryptocurrency traders should exercise extreme caution when making market entry decisions. It is better to stay out of the market before significant fundamental reports to avoid being caught in sharp price fluctuations. If you choose to trade during news releases, always set stop-loss orders to minimize losses. Without setting stop-loss orders, you can quickly lose your entire deposit, especially if you are not employing money management and trading with large volumes.

Remember that successful trading requires a clear trading plan, like the example presented above. Making spontaneous trading decisions based on current market situations is an inherently losing strategy for intraday traders.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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