Analysis of transactions and trading tips for Bitcoin
The test of the 30,831 price level came at a time when the MACD indicator had risen significantly from the zero mark, limiting Bitcoin's upward potential. After a short period, another test of 30,831 occurred, forming a sell signal. The downward movement to the level of 30,500 did not take long.
Given the weak buying power after the news that U.S. inflation fell more than economists expected, and the sluggish attempt to increase Bitcoin in the second half of the day, the sell signal was timely. Now, trading continues within the channel and, considering the absence of new benchmarks, it is best to continue trading, relying on the implementation of scenarios No. 2. If Bitcoin crosses the lower boundary of the channel at 30,220, a larger sell-off of the trading instrument can be expected.
Buy Signal
Scenario No. 1: Buying Bitcoin today is possible upon reaching the entry point around 30,339 (thin green line on the chart) with the target of growth to 30,531 (thick green line on the chart). Around 30,531, exiting purchases and opening sales in the opposite direction is possible. You may count on a strong growth of Bitcoin provided that the lower boundary of the sideways channel is held, as yesterday's U.S. statistics argued in favor of risky assets.
Note: before buying, make sure that the MACD indicator is above the zero mark and is just starting to rise from it.
Scenario No. 2: Buying Bitcoin today is also possible in the case of two consecutive tests of the 30,220 price level when the MACD indicator is in the oversold area. This will limit the downward potential of the trading instrument and lead to an upward pullback, with targets at 30,339 and 30,530.
Sell Signal
Scenario No.1: Selling Bitcoin today is possible only after updating the level of 30,220 (thin red line on the chart), which will lead to a rapid decline in the trading instrument. The key target for sellers will be the level of 30,028, where exiting sales and also immediately opening purchases in the opposite direction is possible. A break of the lower boundary of the channel will create certain difficulties for Bitcoin.
Note: before selling, make sure that the MACD indicator is below the zero mark and is just starting to decline from it.
Scenario No.2: Selling Bitcoin today is also possible in the case of two consecutive tests of the 30,339 price level when the MACD indicator is in the overbought area. This will limit the upward potential of the trading instrument and lead to a downward pullback, with targets at 30,220 and 30,028.
What's on the chart:
Thin green line – entry price at which you can buy the trading instrument.
Thick green line – estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
Thin red line – entry price at which you can sell the trading instrument.
Thick red line – estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.
MACD line – it is important to be guided by overbought and oversold areas when entering the market
Important: Novice traders in the cryptocurrency market need to be very cautious when making decisions to enter the market. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade with large volumes.
And remember, for successful trading, it is necessary to have a clear trading plan, similar to the one I presented above. Spontaneously making trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.
