If you know the principles of trading, you can form a strategy that works for you. Bitcoin is an incredibly volatile asset, meaning it's price is constantly moving up and down. This makes it perfect for swing trading this range, buying at the bottom and selling at the top. See an example of this in the chart below:
The following conditions mark a good entry point to buy, as the price is now likely to go up:
When the price goes above the EMA, RSIs climb up to overbought (70 & 80) and MACD starts to fall. It's time to sell and exit the trade before the price drops. If you meet your target before those conditions change, take your profits as it's only a matter of time until it comes back down. In this scenario, a 0.5% price increase was seen, and you can wait until these conditions reappear to enter another trade. Setting alerts on the RSI going below 30 is a useful way to identify when it may be safe to enter again.
This is a good way to make a quick return, however if you aren't placing a stop loss, you must be watching the chart at all times to exit the trade if it goes unexpectedly. If you would like to get tips on good entries, and gain other strategies from our FREEconomists or share your own, please join us in Telegram, Discord, or any of our other social media links at the bottom of the page.
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