Bitcoin: simple trading tips for novice investors on August 2. Analysis of yesterday trades in crypto market
August 2, 2023 9:25 am
Tips for trading BTC:
The price test at $28,852 coincided with a negative MACD, confirming the right selling point for Bitcoin. However, there was no significant drop in Bitcoin’s value. A test at $29,014 in the second half of the day, with MACD in the positive zone, gave a buy signal resulting in a sharp upward surge to $29,204, offering good earnings.
The rise continued during the Asian session, and now Bitcoin has a chance to establish a new uptrend, but it needs to close above $29,500 by the end of the day. Notably, there is news about the US tax authorities planning to tax staking. According to the new regulation, staking rewards on POS blockchains will be considered income, and holders will have to pay taxes. How this will be implemented is still unknown. Given that Bitcoin buyers still have chances for growth, it is better to rely on scenario 1.
Buy signal:
Scenario 1: You can buy Bitcoin today when it reaches the entry point near $29,698 (green line on the chart) with the target at $29,981 (thicker green line on the chart). When it reaches $29,981, it is recommended to close long positions and open short ones. We can expect significant growth as long as trading remains above $29,500. Important! Before buying, ensure that the MACD indicator is above zero.
Scenario 2: You can also buy Bitcoin today if it tests $29,460 twice. This will limit the downward potential and lead to a market reversal upwards. We can expect growth towards the opposite levels at $29,698 and $29,980.
Sell signal:
Scenario 1: You can sell Bitcoin today only after it updates $29,460 (red line on the chart), which will cause a rapid decrease in its value. The key target for sellers will be $29,212, where it is recommended to close short positions and open longs immediately. Pressure on Bitcoin will return after breaking the support at $29,500, so be attentive at this level. Important! Before selling, ensure that the MACD indicator is below zero.
Scenario 2: You can also sell Bitcoin today if it tests $29,698 twice. This will limit the upward potential and lead to a market reversal downwards. We can expect a drop toward the opposite level at $29,461 and $29,212.
On the chart:
Thin green line – Entry price for buying the trading instrument.
Thick green line is an expected price where you can set take profit, as further growth above this level is unlikely.
Thin red line is an entry price for selling the trading instrument.
Thick red line is an expected price where you can set take profit, as further decline below this level is unlikely.
MACD Indicator: It is essential to consider overbought and oversold zones when entering the market.
Important: Beginner traders in the cryptocurrency market should be extremely cautious when making trading decisions. It’s best to stay out of the market before important fundamental reports to avoid being affected by sharp price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without stop orders, you could quickly lose your entire deposit, especially if you don’t use money management and trade with large volumes.
Remember that successful trading requires a clear trading plan, like the one presented above. Spontaneous decisions based on the current market situation are inherently losing strategies for intraday traders.
The material has been provided by InstaForex Company – www.instaforex.com
Tips for trading BTC:
The price test at $28,852 coincided with a negative MACD, confirming the right selling point for Bitcoin. However, there was no significant drop in Bitcoin’s value. A test at $29,014 in the second half of the day, with MACD in the positive zone, gave a buy signal resulting in a sharp upward surge to $29,204, offering good earnings.
The rise continued during the Asian session, and now Bitcoin has a chance to establish a new uptrend, but it needs to close above $29,500 by the end of the day. Notably, there is news about the US tax authorities planning to tax staking. According to the new regulation, staking rewards on POS blockchains will be considered income, and holders will have to pay taxes. How this will be implemented is still unknown. Given that Bitcoin buyers still have chances for growth, it is better to rely on scenario 1.
Buy signal:
Scenario 1: You can buy Bitcoin today when it reaches the entry point near $29,698 (green line on the chart) with the target at $29,981 (thicker green line on the chart). When it reaches $29,981, it is recommended to close long positions and open short ones. We can expect significant growth as long as trading remains above $29,500. Important! Before buying, ensure that the MACD indicator is above zero.
Scenario 2: You can also buy Bitcoin today if it tests $29,460 twice. This will limit the downward potential and lead to a market reversal upwards. We can expect growth towards the opposite levels at $29,698 and $29,980.
Sell signal:
Scenario 1: You can sell Bitcoin today only after it updates $29,460 (red line on the chart), which will cause a rapid decrease in its value. The key target for sellers will be $29,212, where it is recommended to close short positions and open longs immediately. Pressure on Bitcoin will return after breaking the support at $29,500, so be attentive at this level. Important! Before selling, ensure that the MACD indicator is below zero.
Scenario 2: You can also sell Bitcoin today if it tests $29,698 twice. This will limit the upward potential and lead to a market reversal downwards. We can expect a drop toward the opposite level at $29,461 and $29,212.
On the chart:
Thin green line – Entry price for buying the trading instrument.
Thick green line is an expected price where you can set take profit, as further growth above this level is unlikely.
Thin red line is an entry price for selling the trading instrument.
Thick red line is an expected price where you can set take profit, as further decline below this level is unlikely.
MACD Indicator: It is essential to consider overbought and oversold zones when entering the market.
Important: Beginner traders in the cryptocurrency market should be extremely cautious when making trading decisions. It’s best to stay out of the market before important fundamental reports to avoid being affected by sharp price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without stop orders, you could quickly lose your entire deposit, especially if you don’t use money management and trade with large volumes.
Remember that successful trading requires a clear trading plan, like the one presented above. Spontaneous decisions based on the current market situation are inherently losing strategies for intraday traders.
The material has been provided by InstaForex Company – www.instaforex.com
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