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Bitcoin: simple trading tips for novice traders on August 16. Analysis of yesterday crypto market trades
August 16, 2023 8:25 amVideo
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Tips for trading BTC
The first price test at $29,403 occurred when MACD was in the positive zone. However, Bitcoin’s growth was limited as the indicator reached its daily highs. The second test at $29,403 occurred shortly after, as MACD was descending from overbought levels, confirming the signal for a Bitcoin decline following scenario 2. This led to a downward movement to around $29,230.
Lack of significant news and sluggish Bitcoin activity following another unsuccessful attempt to breach $30,000 maintain substantial uncertainty regarding future movement. Notably, BTC volatility hit an all-time low, stopping at 15.52%. The previous low was recorded at 18.91% on January 12, 2018. Low volatility is tied to investor concerns about the global economy’s future, which may slow significantly in the second half, deterring risk asset buyers. Despite this, I plan to base my trading on scenario 1 development but anticipate a downward movement.
Buy signal
Scenario 1: Today one can buy Bitcoin when the entry point around $29,235 (green line on the chart) is reached, targeting a rise to $29,434 (thicker green line on the chart). It is better to close long positions near $29,434 and open short positions. Anticipating substantial Bitcoin growth today hinges on the soft protocol from the Federal Reserve’s July meeting. Important! Before buying, make sure that the MACD indicator is above zero.
Scenario 2: You can also buy Bitcoin today in the event of two consecutive price tests at $29,080. This will limit the downside potential of the trading instrument and trigger an upward market reversal. We can also expect BTC growth toward $29,235 and $29,434.
Sell signal
Scenario 1: One can sell Bitcoin today after the level of $29,080 (red line on the chart) is breached, leading to a swift decline in the trading instrument. Sellers’ key target will be the level of $28,886, where it would be better to close short positions and open long ones. Pressure on Bitcoin may intensify at any moment, as fewer and fewer people are inclined to buy at current levels. Important! Before selling, make sure that the MACD indicator is below zero.
Scenario 2: You can sell Bitcoin today if the price tests $29,235 twice. This will limit the trading instrument’s upside potential and lead to a downward market reversal. We can expect a drop to $29,080 and $28,886.
What’s on the chart:
Thin green line is an entry price for buying the trading instrument.
Thicker green line is a projected price where take profit orders can be set or profits can be taken manually, as further growth beyond this level is unlikely.
Thin red line is an entry price for selling the trading instrument.
Thicker red line is a projected price where take-profit orders can be set or profits can be taken manually, as further decline below this level is unlikely.
MACD Indicator. When entering the market, pay attention to overbought and oversold zones.
Important. Novice cryptocurrency market traders should exercise extreme caution when making market entry decisions. It’s advisable to stay out of the market before significant fundamental reports are released to avoid sudden course fluctuations. If you choose to trade during news releases, always set stop orders to minimize losses. Without stop orders, you could quickly deplete your deposit, especially if you aren’t using proper money management and are trading with large volumes.
Remember that successful trading requires a clear trading plan, like the one presented above. Making spontaneous trading decisions based on the current market situation is an inherently losing strategy for intraday traders.
The material has been provided by InstaForex Company – www.instaforex.com
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