Bitcoin has entered price discovery and we are witnessing the start of a a new bull market in crypto trading.
It is understandable that after a 55% increase in the price of Bitcoin over the last month, the crypto asset has drawn the attention of the whole world.
In this article we will take a look at different trading strategies to analyse and find potential entries in an up-trending environment.
Mayne (in the video above) is a great resource for learning how to analyse price movement!
Below, we will explore two simple strategies to enter longs or buy spot when price keeps increasing. One is using Moving Averages and the other is with Fibonacci Retracement.
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Using Technical Analysis to Find Entries When Trading in a Bull Market
Let’s begin with Moving Averages.
(BTC/USDT) 1D Chart
On the chart above we have MA200 (red), MA100 (green) and MA50(white). On the move up in the beginning of 2024, traders had the opportunity to enter a long position on Bitcoin when the price returned to MA 100 at in the 2nd half of January.
On the 4H timeframe analysis, there was one more opportunity for entry – at the end of March. This is a simple a way to get on the bull market train.
Let’s move on to using Fib Retracements
(BTC/USDT) 1D Chart
For this example we are using the 1D timeframe again. After selecting the Fib Retracement tool, we click first at the start of the move and then at the top of the move. The levels we look at are 0.382, 0.5 and 0.618. As seen here, the price wicked under the 0.618 level, but we did not have daily close below. Thus 0.618 can be a great place to set a limit order.
Remember, trading is risky and you should never risk too much capital, as I myself have done multiple times and it did not end well…
As some seasoned traders say: “Patience is key!”
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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