04.01.2023

Today‘s crypto trading spotlight again deals with the cryptocurrency BitDAO or $BIT.

My last article also was covering this token. It had a big spike to $0.35ish, but broke the risk level/high of $0.3428 I wrote about by a tiny bit, before having quite a big flush to the high $0.31s. You can read my last blog post at my my website, where I publish my trading plans earlier, at: https://niklasschomaker.com/.

From there on it found a bottom and without a lot consolidation it turned to the upside again and went to now around $0.40ish. This is also where I see the next resistance to trade against. You can see that resistance line in the daily chart below.

This is the afore mentioned resistance line in blue on the daily chart. This is also the line I would trade Short against, but only if the cryptocurrency $BIT fails to break this level or just barely breaks to the upside and goes below it a few minutes/hours later again.

So the plan involves going Short $BIT with a risk level of about $0.40 - $0.41, an entry level that is in this range or as close to it as possible. The target area is around $0.35ish. BUT for the plan to be viable the crypto needs to stay below for some time or have a major crack so to not get stopped out on the frontside run. 

You can take a small starter to trade against if these two requirements are not met, but make sure to stop out if it goes above the risk level. 

Have a great day!

Niklas

This is not financial advice!