Guide to Trading BTC During CONSOLIDATION - By Trading-GuruHi everyone, in this technical analysis I will share how to trade BTC in this consolidation phase. The price is relatively stable and the volatility per candle has dropped significantly.
Also at 100eyes we can see that way less alerts have been given in the last week compared to the month before. The price moves less fast for any coin at the moment.
I have a few suggestions on how to trade during these moments. Make sure you trade smaller fractions of your portfolio and focus on scalp trades mostly inside the yellow area while you hold your larger positions for trading the breakout.
The reason behind this is that once the consolidation is over, BTC might make a very large move. A move upwards will pull all BTC pairs down immediately. A move downwards often results in a major drop in the entire crypto marketcap and also results in lower BTC pairs.
This is why you'd want to tread carefully and for instance only trade up to 50% of your portfolios worth. This will mean you will have enough money left to trade the larger positions when the actual moves begin.
The second advice is about the duration of your positions. If you enter a trade, do so with the aim to leave the trade within a good few hours or so. Time in the market is relatively dangerous at the moment, but there are great short term scalp opportunities.
The two opportunities that I highlight in the chart above relate to a short position and a long position within the horizontal parallel channel that BTC is in right now.
The channel is roughly between $10,500 and $9,750. Even though these trades are scalp trades only, they still provide a nice 5% opportunity on both ways.
Make sure you set the stop-loss directly outside the channel to minimize risk.
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- Trading Guru
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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
