Analysis of transactions and trading tips for Bitcoin
The price test of $30,161 coincided with the start of the MACD’s rise above the zero mark, which confirmed the correct entry point for buying Bitcoin. As a result, those who held onto the trade could see figures around $31,000. The growth in demand and risk appetite in the cryptocurrency market can hardly be called stable, and purchases from the lower boundary of the sideways channel are not surprising from a technical point of view. There were no fundamental reasons for increasing long positions yesterday, except for the fairly dovish statements by representatives of the Federal Reserve System. Today, traders can continue to push Bitcoin higher, targeting the upper boundary and annual highs around $31,260, so there is potential for further growth.
Buy signal
Scenario No. 1: Buying Bitcoin today is possible when the entry point is reached around 30,660 (thin green line on the chart) with the target of rising to the level of 30,975 (thick green line on the chart). I recommend exiting purchases around 30,975 and opening sales in the opposite direction. It is possible to count on strong growth of Bitcoin within the framework of the sideways channel and risk demand.
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 price tests at 30,440 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 30,660 and 30,975.
Sell signal
Scenario No. 1: Selling Bitcoin today is possible only after the level of 30,440 is updated (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 30,091, where I recommend exiting sales and immediately opening purchases in the opposite direction. The closer to the upper boundary and annual highs, the higher the probability of a decline.
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 price tests at 30,660 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 30,440 and 30,090.
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.
The material has been provided by InstaForex Company – www.instaforex.com
Analysis of transactions and trading tips for Bitcoin
The price test of $30,161 coincided with the start of the MACD’s rise above the zero mark, which confirmed the correct entry point for buying Bitcoin. As a result, those who held onto the trade could see figures around $31,000. The growth in demand and risk appetite in the cryptocurrency market can hardly be called stable, and purchases from the lower boundary of the sideways channel are not surprising from a technical point of view. There were no fundamental reasons for increasing long positions yesterday, except for the fairly dovish statements by representatives of the Federal Reserve System. Today, traders can continue to push Bitcoin higher, targeting the upper boundary and annual highs around $31,260, so there is potential for further growth.
Buy signal
Scenario No. 1: Buying Bitcoin today is possible when the entry point is reached around 30,660 (thin green line on the chart) with the target of rising to the level of 30,975 (thick green line on the chart). I recommend exiting purchases around 30,975 and opening sales in the opposite direction. It is possible to count on strong growth of Bitcoin within the framework of the sideways channel and risk demand.
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 price tests at 30,440 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 30,660 and 30,975.
Sell signal
Scenario No. 1: Selling Bitcoin today is possible only after the level of 30,440 is updated (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 30,091, where I recommend exiting sales and immediately opening purchases in the opposite direction. The closer to the upper boundary and annual highs, the higher the probability of a decline.
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 price tests at 30,660 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 30,440 and 30,090.
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.
The material has been provided by InstaForex Company – www.instaforex.com
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