Bitcoin short term trading strategies | BTCUSD moving within range

It is time to take short term trades in Bitcoin instead of using vast capital to buy BTCUSD. A proper trading setup would ensure traders remain profitable even if the market makes any abrupt movements.

Several investors were in for a harsh surprise as Bitcoin lost its entire gains within minutes. It dropped around 12%. Investors began to panic.

BTCUSD has found support around the $9,600 range now. Traded volume continues to be less, but the fear that initially gripped the markets is gone now.


BTC volatility: Importance of limit and stop-loss orders

After the crash, BTC rose and found a reliable support zone. The fear vanished as investors gulped down the losses. A lot of investors would likely stay out of such volatile movements now.

In such a scenario, it is best to put Limit orders and Stop-loss orders instead of market orders. The stop-loss would always be a cushion against such devastating swings. A lot of traders forget its importance when trading in such volatile markets.


Short term trading strategies in BTCUSD


Let us look at the four-hour BTCUSD for taking the swing trades. The trendline joining the highs and the lows give the impression of a rising wedge, which is a bearish pattern

The region above the trendline around the $10k range is the psychological resistance level. Bitcoin might move in within the trendline bound zone.

The opportunity for trading will arise when BTCUSD crosses over the upper trendline. That will be the opportunity to enter a long position. The target would be around $10,000, with a gain of 3%.

Another trading opportunity would arise in case BTCUSD retests the upper trendline and falls below. That would give the chance to make a short trade. In both the trading strategies, there should be a stop-loss in place. 

Traders should always keep in mind the risk to reward ratio more than 1:2. That way, even if 50% of the trades go wrong, the trader will still be profitable.

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Sabyasaachi is a stock market enthusiast by day, a content writer by night. He believes that 90% of one's problems can be solved by marketing, while solving the other 10% just requires good procrastination skills.

Disclaimer: The views, thoughts, and opinions expressed in the article have been curated for our audience and does not warrant a 100% accuracy. All the information mentioned in the article is subject to change according to the changing viewpoints. Feel free to reach us at [email protected] for any change or copyright issues.

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Sabyasaachi Karmakar
Sabyasaachi Karmakar
Sabyasaachi is a stock market enthusiast by day, a content writer by night. He believes that 90% of one's problems can be solved by marketing, while solving the other 10% just requires good procrastination skills.

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