Bitcoin: simple trading tips for novice investors on August 7. Analysis of yesterday trades in crypto market
August 7, 2023 8:24 am
Tips for trading BTC
A test of 29,263 occurred at a time when the MACD indicator was in a positive zone. However, it was located at intraday highs, which limited further upward movement of BTC in the sideways channel. For this reason, I did not go long. The fact that Bitcoin continues to trade below 29,500 indicates a high chance of further decline. Sellers are trying to push the instrument below 29,000. It means that a breakout may occur at any moment. Traders ignored the NonFarm Payrolls report published on Friday. Fresh figures confirmed again a high probability of further downward correction of Bitcoin. For this reason, it is better to be extremely careful with long positions. I’m going to trade according to scenarios No. 1 and No. 2 for short positions. Buy signal
Scenario No.1: you can buy BTC today when the price reaches 29,169 (the green line on the chart) with the prospect of a rise to 29,585 (thicker green line on the chart). At 29,585, I recommend closing long positions and opening short ones in the opposite direction. BTC is unlikely to resume a strong upward movement in the near future. Important! Before buying, make sure that the MACD indicator is above the zero mark and it has just started to climb from it.
Scenario No.2: you can also go long today in the case of two consecutive tests of 28,960 at a time when the MACD indicator will be in the oversold area. This will limit the downward potential of the trading instrument and could lead to a market reversal. It may advance to the levels of 29,169 and 29,585.
Sell signal
Scenario No. 1: it is possible to sell Bitcoin today only if the price touches 28,960 (the red line on the chart), which may lead to a rapid decline. The key level is located at 28,534 where I recommend exiting sales as well as opening long positions in the opposite direction. The pressure on BTC may increase at any moment, especially if after a slide below the lower border of the sideways channel. Important! Before selling, make sure that the MACD indicator is below the zero mark and it has just started to dip from it.
Scenario No. 2: you can also sell BTC today in the case of two consecutive tests of 29,169 at a time when the MACD indicator will be in the overbought area. This will limit the upward potential of the trading instrument and lead to a market reversal. The instrument is projected to slide to the levels of 28,960 and 28,534.What’s on chart:
The thin green line is the entry point where you can buy a trading instrument;
The thick green line is the estimated price where you can place a Take Profit order or lock in profits manually as BTC is unlikely to rise above this level;
The thin red line is the entry point where you can sell the trading instrument ;
The thick red line is the estimated price where you can place a Take Profit order or lock in profits manually as the price is unlikely to decline below this level;
The MACD indicator. When entering the market, it is important to pay attention to overbought and oversold zones.
Important. Novice traders need to make very careful decisions when entering the market. Before the release of important fundamental reports, it is better to stay out of the market to avoid losses due to sharp fluctuations in the exchange rate. If you decide to trade during the news release, always place Stop Loss orders to minimize losses. Without placing Stop Loss orders, you can lose the entire deposit very quickly, especially if you do not use money management but trade in large volumes. Remember that for successful trading it is necessary to have a clear trading plan, following the example of the one I presented above. Relying on spontaneous trading decisions based on the current market situation is a losing strategy of an intraday trader.
The material has been provided by InstaForex Company – www.instaforex.com
Tips for trading BTC
A test of 29,263 occurred at a time when the MACD indicator was in a positive zone. However, it was located at intraday highs, which limited further upward movement of BTC in the sideways channel. For this reason, I did not go long. The fact that Bitcoin continues to trade below 29,500 indicates a high chance of further decline. Sellers are trying to push the instrument below 29,000. It means that a breakout may occur at any moment. Traders ignored the NonFarm Payrolls report published on Friday. Fresh figures confirmed again a high probability of further downward correction of Bitcoin. For this reason, it is better to be extremely careful with long positions. I’m going to trade according to scenarios No. 1 and No. 2 for short positions.
Buy signal
Scenario No.1: you can buy BTC today when the price reaches 29,169 (the green line on the chart) with the prospect of a rise to 29,585 (thicker green line on the chart). At 29,585, I recommend closing long positions and opening short ones in the opposite direction. BTC is unlikely to resume a strong upward movement in the near future. Important! Before buying, make sure that the MACD indicator is above the zero mark and it has just started to climb from it.
Scenario No.2: you can also go long today in the case of two consecutive tests of 28,960 at a time when the MACD indicator will be in the oversold area. This will limit the downward potential of the trading instrument and could lead to a market reversal. It may advance to the levels of 29,169 and 29,585.
Sell signal
Scenario No. 1: it is possible to sell Bitcoin today only if the price touches 28,960 (the red line on the chart), which may lead to a rapid decline. The key level is located at 28,534 where I recommend exiting sales as well as opening long positions in the opposite direction. The pressure on BTC may increase at any moment, especially if after a slide below the lower border of the sideways channel. Important! Before selling, make sure that the MACD indicator is below the zero mark and it has just started to dip from it.
Scenario No. 2: you can also sell BTC today in the case of two consecutive tests of 29,169 at a time when the MACD indicator will be in the overbought area. This will limit the upward potential of the trading instrument and lead to a market reversal. The instrument is projected to slide to the levels of 28,960 and 28,534.
What’s on chart:
The thin green line is the entry point where you can buy a trading instrument;
The thick green line is the estimated price where you can place a Take Profit order or lock in profits manually as BTC is unlikely to rise above this level;
The thin red line is the entry point where you can sell the trading instrument ;
The thick red line is the estimated price where you can place a Take Profit order or lock in profits manually as the price is unlikely to decline below this level;
The MACD indicator. When entering the market, it is important to pay attention to overbought and oversold zones.
Important. Novice traders need to make very careful decisions when entering the market. Before the release of important fundamental reports, it is better to stay out of the market to avoid losses due to sharp fluctuations in the exchange rate. If you decide to trade during the news release, always place Stop Loss orders to minimize losses. Without placing Stop Loss orders, you can lose the entire deposit very quickly, especially if you do not use money management but trade in large volumes. Remember that for successful trading it is necessary to have a clear trading plan, following the example of the one I presented above. Relying on spontaneous trading decisions based on the current market situation is a losing strategy of an intraday trader.
The material has been provided by InstaForex Company – www.instaforex.com
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