Analysis and tips on how to trade BTC
Euphoria triggered by Ripple's victory in court against the SEC, which insisted that the XRP token is a security, quickly faded due to a lack of support from major players near the latest yearly high. A slight expansion of the sideways channel caused a decline in the Bitcoin price. Profit-taking also contributed to this, as it is evident that another unsuccessful attempt to break above the highs would be seen as a trigger for a larger bearish correction. Many players are currently anticipating a correction, which is evident by the lack of trading activity in the market over the weekend when Bitcoin barely moved. Today, I will trade according to Scenario 1.
Signal to buy
Scenario 1: I will buy BTC today after the price reaches 30,250 (green line of the chart), targeting 30,554 (thicker green line). I will close long positions in the area of 30,554 and open short ones. Growth will likely continue within the new ascending channel. However, it is wiser to buy near the lower limit of the wider sideways channel. Important! Before buying the instrument, make sure the MACD is above zero and just starts moving up from this level.
Scenario 2: I will also buy BTC when the price tests the mark of 30,177 twice, with the MACD being in the oversold zone at that moment. This will limit the instrument's downside potential and lead to a bullish reversal in the market. The quote may go either to 30,350 or to 30,554.
Signal to sell
Scenario 1: I will sell BTC today after the price tests the mark of 30,177 (red line on the chart), which will cause a rapid fall in value. The bearish target is seen at 29,900 where I will close short positions and buy the instrument. BTC may feel pressure if there are no buyers near the lower limit of the sideways channel, which could trigger a sell-off. Important! Before selling the instrument, make sure the MACD is below zero and just starts moving down from this level.
Scenario 2: I will also sell the instrument after the price tests the mark of 30,350 twice, with the MACD being in the overbought zone at that moment. This will limit the pair's upside potential and lead to a bearish reversal in the market. The quote may then go either to 30,177 or to 29,900.
Indicators on charts:
A thin green line indicates a buy entry point.
A thin 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 overbought and oversold zones.
Important! Novice crypto traders should be very careful when deciding to enter the market. Before the release of important fundamentals, you should stay out of the market in order to avoid sharp fluctuations in the rate. 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.
