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Cryptocurrency Trading Strategy Analysis: Bitcoin and Ethereum Afternoon Trading Strategy
In the current cryptocurrency market, Bitcoin (BTC) and Ethereum (ETH) are the two major currencies, and their price fluctuations and trading strategies have always been the focus of investors. This article will combine the latest market analysis to provide you with a comprehensive afternoon trading strategy to help you grasp market dynamics and develop reasonable trading strategies.
1. Market Overview and Technical Analysis
Bitcoin (BTC) Market Analysis
From the daily chart, Bitcoin has formed several small doji candlesticks over the past few days, indicating a range-bound oscillation pattern between 9.6-9.8. Although the price can remain above the MA5/10 moving averages, there has not been an opportunity for a significant upward movement.
On the 4-hour chart, Bitcoin price is pulling back to the MA30 moving average. Pay attention to the loss of this level during the day. Meanwhile, the 1-hour chart has also pulled back to the MA256 moving average. This level has been repeatedly mentioned in last week's analysis article as a battleground.
Ethereum (ETH) Market Analysis
From the daily chart, Ethereum formed a red doji yesterday. Today's price has briefly exceeded the previous high and is currently stabilizing above the MA5 moving average. However, on the 4-hour level, the price has already dropped below the MA5/10 moving averages and is about to pull back to the MA30 moving average.
Focus first on the support at 3660. The stability of this support level will have a significant impact on Ethereum's short-term trend.
2. Afternoon Trading Strategy
Bitcoin (BTC) Trading Strategy
BTC: Light long positions near 9.53/9.48, target above 9.7; light short positions at 9.9/9.88, target near 9.6. This strategy is based on Bitcoin's oscillation pattern in the 9.6-9.8 range and the support of the MA10 moving average.
Ethereum (ETH) Trading Strategy
ETH: Long positions near 3560/3620, target above 3700; short positions to follow Bitcoin's movements. This strategy considers Ethereum's support level near 3620 and the breakdown of the MA5/10 moving averages.
3. Medium to Long-term Trend Analysis
Bitcoin (BTC) Medium to Long-term Trend
Bitcoin rebounded to 9.8 before falling back to 9.6. The daily chart is still above the MA10 moving average. Although there is selling pressure causing a pullback, the outlook still leans towards a bullish oscillation.
Ethereum (ETH) Medium to Long-term Trend
Ethereum's daily chart is currently remaining above the MA5/10 moving averages, so we continue to look for a rebound trend, paying attention to the gains and losses of the 4-hour MA30 moving average.
4. Risk Management and Trading Skills
In cryptocurrency trading, risk management is crucial. Here are some basic risk management strategies:
Setting Stop-Loss Orders: By setting stop-loss orders, traders can limit potential losses. These stop-loss orders will automatically exit positions at preset loss levels.
Position Size and Risk-Reward Ratio: Position size and risk-reward ratio are also very important as they help traders determine the financial risk of each trade.
Conclusion
The cryptocurrency market is highly volatile, and price changes are rapid. Therefore, investors need to closely monitor market dynamics, reasonably use technical analysis tools, develop scientific trading strategies, and strictly implement risk management measures. I hope this article provides you with valuable references to help you move steadily in the cryptocurrency market.
