15.01.2023
Today‘s crypto trading spotlight deals with the most known cryptocurrency, which started all of this and that is Bitcoin. If you are reading this, you probably know about recent gains and if you watch the markets quite regularly you definitely know about the recent rally Bitcoin had.
The rally was one of the biggest we have seen in this bear market we are in and some people are calling for the start of the next bull market. While I also love to see green and Bitcoin going up, I am still cautious.
This trade plan is a bit different from the others, as the trading pattern comes from stock trading and is called the first red day (at least what I would call it).
Bitcoin has been going up for 7 days in a row now and at some point there will be a red day, Longs get exhausted and Shorts squeezed out. Today might be the day of the first red daily candle and I base my plan on this. Below you can see the daily trading of Bitcoin. 
My plan gets defined by the daily and executed on a smaller time frame 1 hour or 15 minute candles.
I am going Short anything close to the opening price level of Bitcoin, which on ByBit is $20952.50. This will be my risk level and I will cut the position if it goes above.
You can see my risk level in the hourly chart below.
As a price target I am aiming for anything under $20k.
This plan is also feasible for other cryptocurrencies, mainly the biggest market cap ones, as they look similar. Just the price needs to be adjusted in that case, if for example you would like to trade Ethereum ($ETH).
I hope that gives a good idea of my plan. Have a nice Sunday!
Niklas
This is not financial advice. You can see my latest posts on niklasschomaker.com.
