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Trading tips for trading BTC
On Friday, the price tested $26,121 coinciding with the MACD's pivot into positive territory, initiating an upward trend. This seemed like a strong buy signal due to increased demand for risky assets the day before. However, after a slight upward spike to $26,212, pressure on Bitcoin returned ahead of Powell's speech. The head of the Federal Reserve announced that they would continue raising rates and keeping them at highs until inflation returns to its 2% target, which is clearly unfavorable for Bitcoin. This could prolong its ongoing series of declines that began earlier this month. The absence of prospects for near-term policy easing limits Bitcoin's upside potential. For this reason, it is better to act within a new bearish trend, seeking sell signals. The only hope for buyers is the realization of Scenario 2 around $25,883.
Buy signal
Scenario 1: You can buy Bitcoin today upon reaching the entry point around $25,978 (green line on the chart) with the target at $26,113 (thicker green line on the chart). It is recommended to close long positions near $26,113 and open short positions. Count on Bitcoin's rise today only within a small upward correction. Important! Before buying, make sure that the MACD indicator is above zero.
Scenario 2: One can also buy Bitcoin today is also an option in the case of two consecutive tests of the price at $25,882. This will limit the downward potential of the trading instrument and lead to an upward market reversal. We can expect growth towards the opposite levels of $25,978 and $26,113.
Sell signal
Scenario 1: Selling Bitcoin today is possible only after the level of $25,982 (red line on the chart) is updated, leading to a swift decline in the trading instrument. Sellers' key target will be the level of $25,768, where it is recommended to exit sales and immediately open longs. Pressure on Bitcoin could intensify at any moment within the bearish market. Important! Before selling, make sure that the MACD indicator is below zero.
Scenario 2: Selling Bitcoin today is also an option in the case of two consecutive tests of the price at $25,978. This will limit the upward potential of the trading instrument and lead to a market reversal downwards. We can also expect a decrease towards the opposite level of $25,882 and $25,768.
On the chart:
Thin green line - entry price for buying the trading instrument.
Thick green line - anticipated price where you can set a take-profit order or lock in profits manually, as further growth above this level is unlikely.
Thin red line - entry price for selling the trading instrument.
Thick red line - anticipated price where you can set a take-profit order or lock in profits manually, as further decline below this level is unlikely.
MACD Indicator. When entering the market, it's important to consider overbought and oversold zones.
Important. Novice cryptocurrency market traders must exercise extreme caution when making market entry decisions. It's best to stay out of the market before major fundamental reports to avoid exposure to sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. Without setting stop orders, you could quickly lose your entire deposit, especially if you don't utilize proper money management and trade with large volumes.
Remember that successful trading requires a clear trading plan, such as the one presented above. Spontaneous trading decisions based on current market situations are inherently losing strategies for intraday traders.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.
