Bitcoin is currently the hottest trading market in this era. It is currently stronger than the stock market, oil market, gold market, or other markets. Many people believe this business will remain hot due to blockchain technology. This is how the deals without the need for a central exchange can take place. Here is a strategy for the bitcoin buy trade.
Combine The Graphs For Bitcoin And Ethereum With The Ovb Indicator
There should be three windows in your chart. The first is for the trade bitcoin chart, while the second is for the ethereum chart. Finally, create a separate window for the OVB indication.
Money Difference Between Bitcoin And Ethereum
Simply put, keep an eye on the price difference between bitcoin and ethereum. When one cryptocurrency fails to confirm the behaviour of another, this is known as smart money divergence. We are in a trend, so the smart money divergence notion works since the entire trade bitcoinmarket moves in the same direction. For decades, the same concepts have applied to all other major asset groups. This is also true in terms of cryptocurrency trading strategies.
Expect TheOvb To Rise In The Same Direction As The Trend
If bitcoin’s price is lagging behind ethereum’s, it suggests that bitcoin will eventually catch up to ethereum and break through the resistance. Simply put, the OBV is a fantastic technical metric. It can tell us whether real money is purchasing bitcoin or selling it. When bitcoin fails to break above a resistance level or a swing high, and ethereum has already broken, you want to see the OBV increase in the trend’s direction. You also want it to break through the level at which bitcoin was previously trading at this barrier level.
To Catch The Breakout, Place A Buy Limit Order At The Resistance Level
You have to place a buy limit order once the OBV indicator gives us the green signal. In anticipation of a possible breakout, place the order at the resistance level. This deal being triggered and the bitcoin price breaking higher than expected is unsurprising. After all, it is stated that the OBV is a fantastic indication.
Set Your Stop Loss Below The Breakout Candle And Take Profit
Trading with a stop loss below the breakthrough candle is a good idea. When it comes to taking profit, an OBV reading of more than 105,000 usually implies at least a pause in the trend. This is the area where you aim to make money.
We live in a digitalized society, and it is not out of the realm of possibility for bitcoin or other large cryptocurrencies to replace the way you pay for goods and services. Surely, one day, our currency system will fail and cryptocurrency will completely replace it. Thus, the best bitcoin trading strategy has thrown some light on how you can trade cryptocurrencies using the same technical analysis techniques to trade in the currency market.