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[Oluti]

At the time of writing, Bitcoin has gone through an explosive price increase over a brief period. One implication of this is that it cannot go on forever. As time passes, the type of trading strategy that will be most useful to Bitcoin traders will change. At the time of writing, determining the trend by looking at the price over a short time frame, for example by asking if it is up or down over the past 4 weeks, will usually work well. As price movements become more normalized over time, that useful time frame will lengthen towards something closer to the 13 weeks or so which, tends to be most useful look-back period in trading fiat currency pairs.

Until Bitcoin goes through this change of slowing down in its volatility, the most profitable strategies to use will probably rank in this order:

1. Entering early after reversals at counter-trend extremes, such as 1 or 2-day highs or lows, using price action to determine reversals.

2. Entering early after reversals at support and resistance levels where a lower high or higher low is formed, using price action to determine reversals.

3. Entering on breakouts after high-range moves in the direction of the trend.

As cryptocurrencies like Bitcoin and Ethereum “mature”, these strategies will probably become more effective in the reverse order to that in which I have listed them, with breakouts after high-range moves being the most profitable strategy and using price action to determine reversals the least profitable.Bitcoin

The complete details of a system meeting the specifications of the breakout strategy are detailed below.

Time Frame:
4 Hour chart

Indicators:
RSI 10, SMA 18, SMA 60, ATR 30

Conditions for Long Trades:
Price is higher than it was 3 months and 6 months ago

At candlestick close, RSI 10 is 50 or higher, SMA 18 is above SMA 60, total range of candlestick is greater than 1.25 X ATR 30.

The high of the candlestick is above the high of the previous candlestick.

Entry if price reaches $10 beyond candlestick high during the next candlestick. Place stop loss $10 under the candlestick low.

Use fixed profit target of at least 3 X the risk. For example, if your stop is $200 in price away from your entry, the profit target should be at least $600.

Conditions for Short Trades:
Price is lower than it was 3 months and 6 months ago

At candlestick close, RSI 10 is 50 or lower, SMA 18 is below SMA 60, total range of candlestick is greater than 1.25 X ATR 30.

The low of the candlestick is below the low of the previous candlestick.

Entry if price reaches $10 beyond candlestick low during the next candlestick. Place stop loss $10 above the candlestick high.

Use fixed profit target of at least 3 X the risk. For example, if your stop is $200 in price away from your entry, the profit target should be at least $600.

 

[lioralace]

Bitcoin's sharp price increase has captivated traders and investors around the globe, but like any asset that grows quickly, trading dynamics will inevitably change. Because of the extreme volatility that defined Bitcoin's early phases, short-term price action-based strategies have proven to be very successful thus far. However, the best trading tactics will unavoidably change as the cryptocurrency market develops and price swings become less unpredictable.

These days, traders are successful when they use strategies that take advantage of sudden reversals and transient changes in momentum. Reading price action for indications of possible reversals is crucial to strategies like entering trades right after a counter-trend extreme, such as a high or low that occurs within one or two days. Finding reversals at important levels of support and resistance is another useful strategy.
As Bitcoin and other cryptocurrencies like Ethereum "mature," it is anticipated that these tactics will become less effective. Quick reversal plays will probably become less predictable as a result of the increased stability, but breakouts following big moves will become more trustworthy markers of long-term trends. This development is similar to what is frequently observed in conventional fiat currency markets, where longer-term breakout strategies typically outperform short-term reversal strategies.

There is a comprehensive system that traders interested in using a breakout strategy designed especially for Bitcoin should take into consideration. This method makes use of a 4-hour chart and a number of technical indicators, including a 30-period Average True Range (ATR), 18- and 60-period Simple Moving Averages (SMAs), and a 10-period RSI.The system requires that Bitcoin's price be higher now than it was three and six months ago, indicating an underlying uptrend, in order to be eligible for a long trade. When a candlestick closes, bullish momentum is indicated by the RSI being 50 or higher and the shorter SMA (18) being above the longer SMA (60). In order to guarantee that the move is noteworthy in relation to recent volatility, the candlestick's overall range must also be greater than 1.25 times the ATR. Additionally, the current candlestick's high ought to surpass the previous one's. With a stop loss set $10 below the candlestick's low, entry is initiated if the price rises $10 above the candlestick's high during the subsequent candle. The requirements are the same for short trades, however: the price must be lower than it was three and six months ago, the RSI must be 50 or below, and the 18 SMA must be below the 60 SMA, indicating bearish momentum. Once more, the candlestick's range must be larger than 1.25 times the ATR, and its low must be lower than the low of the preceding candle. With a stop loss set $10 above the candlestick's high and a comparable 3:1 reward-to-risk ratio, entry happens if the price falls $10 below the candlestick's low during the subsequent candle.

 

[Professional Writer]

There are various different kinds of Bitcoin trading strategies out there. However, we must understand that not all of them are equally profitable. Certain Bitcoin strategies could be much more beneficial as compared to other. However, this depends a lot in many factors. A better trading strategy is based on volume, liquidity, order blocks, and other data. We may need a Really good indicator that could help us find trends an other important aspects related to Bitcoin trading as well.