Bitcoin Price has touched the 19437.10 mark on some exchanges. This model of heightened volatility is something quite anticipated in the crypto sphere. If we examine the BTC price on a longer timeframe, we can observe unexpected signs that hint back to the “rise and fall” of cryptocurrencies, which supplied doubters of blockchain technologies with supplementary reasons to doubt and praise this market.
The question is: How to potentially make a profit using the scalping strategy? Should traders move into today’s unknown territories? Let’s take a look at it in more detail.
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Bitcoin Price: Should You Scalp?
One can choose scalping as a basic trading style or an additional technique. A scalper will apply short timeframe, tick, or one-minute charts to design trades. It requires commitment, control, and agility to perform scalp deals. If a trader would rather take some time to determine the appropriate asset and make the decision with time, then scalping is not fun. However, it is beneficial if traders like speed and want instant profit.
Right now, the Bitcoin price is sitting at 19437.10 and if we observe the 1 Min chart then we can see that the price has slightly declined in the last 8-9 mins. So, in other words, Scalping trading is a short-term trading method that includes buying and selling many times during the day to make a profit from the price variation. It means buying BTC at a lower price and selling high. The code is to obtain highly liquid assets that encourage various price changes during the day. One can’t scalp if the asset isn’t liquid. Liquidity also assures that one gets the best price when entering or exiting the market.
Bitcoin Price: Important Tips To Consider For Scalping
Scalp traders utilize trading charts and timeframes that are the smallest of all the trading techniques. A day trader might apply a 5-minute trading chart to execute five deals per day. But a scalp trader will apply timeframes as low as 5-seconds to 1-min for 10 to 100 trades during the day. To accomplish this high speed of trading, scalp traders use different trading methods such as the market’s ‘time and sales’ – a history of purchasing, selling, and reversed transactions. The following are some of the important tips:
- Use the most precise timeframe to trade between 5 seconds and 1 minute.
- One could invest in approximately 8% to 15% of the purchasing power in each scalp trading.
- Direct Stop Lose 0.1% from the entry price.
- Wait in trades till the price touches the reverse point.
- For trading in low chart frames, one could trade between .2% and .3%.
- Aim for fast results. One can trade in the market at ultra-speed. Before other traders notice a chance, a scalper will open and close his deal.
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