Bitcoin: simple trading tips for novice investors on August 9. Analysis of yesterday trades in crypto market
August 9, 2023 8:22 am
A test of 29,320 occurred when the MACD indicator was in the positive zone, but had not yet reached its daily lows, which was a confirmation of the correct entry point into long positions. As a result, BTC resumed the upward movement to 29,620 but it did not test 29,686. A rise took place after the news that Moody’s downgraded the credit ratings of many small and medium-sized American banks and placed several large Wall Street companies on the list for a possible revision of the rating in the near future. This undermined sentiment in the stock market, which led to a wave of sell-offs. Bitcoin grew in March after the collapse of several American medium-sized banks. BTC is highly likely to climb higher. The main thing is to stay above 29,500. For this reason, I am going to open long positions according to scenario No. 1. Buy signal
Scenario No.1: you can buy Bitcoin today if the price reaches 29,784 (green line on the chart) with the possibility of rising to 30,278 (thicker green line on the chart). At 30,278, I recommend closing long positions and opening short ones in the opposite direction. Bitcoin is likely to grow higher after yesterday’s news. Important! Before buying, make sure that the MACD indicator is above the zero level.
Scenario No.2: it is also possible to buy Bitcoin today in the case of two consecutive tests of 29,488. This will limit the downward potential of the trading instrument and lead to a market reversal. BTC is expected to jump to the opposite levels of 29,784 and 30,278.
Sell signal
Scenario No. 1: you can ho short today only if the price touches 29,488 (the red line on the chart), which may lead to a rapid decline. The key level is located at 29,037 where I recommend exiting sales as well as opening long positions in the opposite direction. The pressure on BTC will increase if it falls below 29,500. 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 29,784 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 29,488 and 29,037.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 BTC where you can place a Take Profit order or lock in profits manually as 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
A test of 29,320 occurred when the MACD indicator was in the positive zone, but had not yet reached its daily lows, which was a confirmation of the correct entry point into long positions. As a result, BTC resumed the upward movement to 29,620 but it did not test 29,686. A rise took place after the news that Moody’s downgraded the credit ratings of many small and medium-sized American banks and placed several large Wall Street companies on the list for a possible revision of the rating in the near future. This undermined sentiment in the stock market, which led to a wave of sell-offs. Bitcoin grew in March after the collapse of several American medium-sized banks. BTC is highly likely to climb higher. The main thing is to stay above 29,500. For this reason, I am going to open long positions according to scenario No. 1.
Buy signal
Scenario No.1: you can buy Bitcoin today if the price reaches 29,784 (green line on the chart) with the possibility of rising to 30,278 (thicker green line on the chart). At 30,278, I recommend closing long positions and opening short ones in the opposite direction. Bitcoin is likely to grow higher after yesterday’s news. Important! Before buying, make sure that the MACD indicator is above the zero level.
Scenario No.2: it is also possible to buy Bitcoin today in the case of two consecutive tests of 29,488. This will limit the downward potential of the trading instrument and lead to a market reversal. BTC is expected to jump to the opposite levels of 29,784 and 30,278.
Sell signal
Scenario No. 1: you can ho short today only if the price touches 29,488 (the red line on the chart), which may lead to a rapid decline. The key level is located at 29,037 where I recommend exiting sales as well as opening long positions in the opposite direction. The pressure on BTC will increase if it falls below 29,500. 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 29,784 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 29,488 and 29,037.
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 BTC where you can place a Take Profit order or lock in profits manually as 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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