Quick Way to Analyze Negative Sentiment for Scalping Strategy
🚨 "Whale Shorting BTC: Important Lessons for Retail Traders!"
A whale successfully made $800,000 from Bitcoin shorting strategy! By taking advantage of the correction after Jerome Powell's comments, they managed to sell at $103,402 and buy back at $101,482. 💰
This news provides insight that market sentiment is influenced by macroeconomic factors (Jerome Powell's comments) and the activities of large traders (whales). Here's how to use this information:
1. Identify Market Sentiment Sentiment: Powell's comments triggered a correction in Bitcoin's price. This negative sentiment tends to trigger short-term volatility, an ideal opportunity for scalping.
Market Reaction: Successful shorting by whales shows that selling pressure is still dominant.
2. Determine Important Levels
Support: The buyback price of $101,482 shows a potential support area.
Resistance: The initial short selling price of $103,402 could become new resistance.
3. Use Indicator $BTC
for Scalping
EMA: Use EMA 8 and EMA 20 to determine short-term momentum.
RSI: If RSI is approaching oversold (<span consider a long entry. If overbought (>70), enter short.
Volume: A spike in volume can signal a sudden trend change.
4. Plan Entry and Exit Strategy
Short: If price approaches resistance ($103,000+), enter with a quick profit target below $102,000.
Long: Entry at support area ($101,500–$101,800) with a target around $102,500.
5. Risk Management
Set a tight stop-loss (eg 0.5-1% of entry price).
💡 What can we learn?
Macro Sentiment is Key: Comments from figures like Powell often trigger high volatility, a golden opportunity for scalpers.
Key Technical Levels: $101,482 becomes new support, while $103,402 becomes resistance.
👉 For scalpers: Have you prepared a strategy for trading amidst this volatility? Let's discuss and share your insights in the comments column! 🚀