Trading cryptocurrencies, especially Bitcoin, is one of the most exciting fields, but it carries high risks if you move randomly. If you’re new to the market, here are 3 golden rules to help you understand price movement so you can trade safely:
1. Monitor the support and resistance levels for the $BTC coin
• Support (Support): is the price that prevents Bitcoin $BTC from dropping further, where buyers become more abundant. If the price approaches support, it may be a good opportunity to buy.
• Resistance: It is the price level that $BTC is difficult to break through because there are many sellers. Breaking above this level upward usually means the uptrend will continue.
2. Track Trading Volume
Do not trust any sudden rise in the price of $BTC unless it is accompanied by strong trading volume. An increase with weak trading volume is often a "bull trap" followed by a rapid drop.
3. Risk management and using a stop-loss order
Before you open any trading position on Bitcoin $BTC, determine in advance the amount of loss you can tolerate. Always use the charting tool available below the post to track the price movement accurately and to identify the right entry point.
💡 Daily tip: Don’t put all your capital into a single trade, and follow the $BTC chart plan regularly before making a decision to sell or buy
