Bitcoin: simple trading tips for novice traders on August 21. Analysis of yesterday’s crypto market transactions
August 21, 2023 8:24 am
Tips for trading BTC
When the price hit $26,404, the MACD indicator was in the negative zone and started moving down. Following the significant Bitcoin sell-off during Asian trading, this scenario was perfect for opening short positions, confirming the right market entry point. As a result, BTC dropped to $25,690, losing nearly $1,000. Currently, after the recent major sell-off due to Elon Musk’s SpaceX selling BTC worth $373 million, acquired back in 2021-2022, expecting a swift recovery is unlikely. Consequently, after the monthly lows are updated, it is better to continue opening short positions with attempts to recover losses. In this case, one may follow scenarios 1 and 2 for selling BTC.
Buy signal
Scenario 1: Buying Bitcoin today is possible upon reaching an entry point near $26,163 (green line on the chart) with the aim of growth towards the level of $26,582 (thicker green line on the chart). Near $26,582, it would be better to close long positions and open short ones. Strong Bitcoin growth today is unlikely, so it’s better to act on declines, following the update of new lows. Important! Before buying, make sure that the MACD indicator is above zero.
Scenario 2: Buying Bitcoin today is also an option in case of two consecutive price tests at $26,031. This may limit the downside potential of the trading instrument and lead to a reverse market upward reversal. We may expect growth toward $26,136 and $26,582.
Sell signal
Scenario 1: Selling Bitcoin today is only possible after updating the level of $26,031 (red line on the chart), which will result in a rapid decrease in the trading instrument. The key target for sellers will be $25,718, where one can close short positions and open long ones. Pressure on Bitcoin will persist and continue. Important! Before selling, make sure that the MACD indicator is below zero.
Scenario 2: Selling Bitcoin today is also possible in case of two consecutive price tests at $26,163. This may limit the upside potential of the trading instrument and lead to a reverse market downward reversal. We can also expect a decline to $26,031 and $25,718.
What is on chart:
Thin green line – entry price for purchasing the trading instrument.
Thick green line – the projected price where you can place take profit orders or lock in profits manually, as further growth beyond this level is unlikely.
Thin red line – entry price for selling the trading instrument.
Thick red line – the projected price where you can place take profit orders or lock in profits manually, as a further decrease below this level is unlikely.
MACD Indicator. When entering the market, it’s important to consider overbought and oversold zones.
Important. Novice traders in the cryptocurrency market should exercise caution when making market entry decisions. It’s best to stay out of the market before significant fundamental reports are released to avoid being caught in sharp course fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you’re not using proper money management and trading in large volumes.
Remember that successful trading requires a clear trading plan, similar to the one presented above. Spontaneously making trading decisions based on the current market situation is initially a losing strategy for an intraday trader.
The material has been provided by InstaForex Company – www.instaforex.com
Tips for trading BTC
When the price hit $26,404, the MACD indicator was in the negative zone and started moving down. Following the significant Bitcoin sell-off during Asian trading, this scenario was perfect for opening short positions, confirming the right market entry point. As a result, BTC dropped to $25,690, losing nearly $1,000. Currently, after the recent major sell-off due to Elon Musk’s SpaceX selling BTC worth $373 million, acquired back in 2021-2022, expecting a swift recovery is unlikely. Consequently, after the monthly lows are updated, it is better to continue opening short positions with attempts to recover losses. In this case, one may follow scenarios 1 and 2 for selling BTC.
Buy signal
Scenario 1: Buying Bitcoin today is possible upon reaching an entry point near $26,163 (green line on the chart) with the aim of growth towards the level of $26,582 (thicker green line on the chart). Near $26,582, it would be better to close long positions and open short ones. Strong Bitcoin growth today is unlikely, so it’s better to act on declines, following the update of new lows. Important! Before buying, make sure that the MACD indicator is above zero.
Scenario 2: Buying Bitcoin today is also an option in case of two consecutive price tests at $26,031. This may limit the downside potential of the trading instrument and lead to a reverse market upward reversal. We may expect growth toward $26,136 and $26,582.
Sell signal
Scenario 1: Selling Bitcoin today is only possible after updating the level of $26,031 (red line on the chart), which will result in a rapid decrease in the trading instrument. The key target for sellers will be $25,718, where one can close short positions and open long ones. Pressure on Bitcoin will persist and continue. Important! Before selling, make sure that the MACD indicator is below zero.
Scenario 2: Selling Bitcoin today is also possible in case of two consecutive price tests at $26,163. This may limit the upside potential of the trading instrument and lead to a reverse market downward reversal. We can also expect a decline to $26,031 and $25,718.
What is on chart:
Thin green line – entry price for purchasing the trading instrument.
Thick green line – the projected price where you can place take profit orders or lock in profits manually, as further growth beyond this level is unlikely.
Thin red line – entry price for selling the trading instrument.
Thick red line – the projected price where you can place take profit orders or lock in profits manually, as a further decrease below this level is unlikely.
MACD Indicator. When entering the market, it’s important to consider overbought and oversold zones.
Important. Novice traders in the cryptocurrency market should exercise caution when making market entry decisions. It’s best to stay out of the market before significant fundamental reports are released to avoid being caught in sharp course fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you’re not using proper money management and trading in large volumes.
Remember that successful trading requires a clear trading plan, similar to the one presented above. Spontaneously making trading decisions based on the current market situation is initially a losing strategy for an intraday trader.
The material has been provided by InstaForex Company – www.instaforex.com
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