In the dynamic world of cryptocurrency trading, recent sessions have proven challenging. Yesterday’s dip-buying strategy was stopped out due to significant downward movements, with the stabilization and rebound occurring during the early morning and today’s dawn—a timing misalignment that calls for tactical adjustments. Despite these short-term fluctuations, the overarching market outlook remains consistent: we are operating within a broad consolidation range. Neither upward breakthroughs nor sustained downward trends have materialized, suggesting that traders should focus on profiting from well-defined support and resistance levels rather than anticipating breakouts. As market conditions shift continuously, adapting your approach in real-time is crucial.
Bitcoin (BTC) Contract Technical Analysis
On the daily chart, Bitcoin closed with a small bullish candle yesterday, forming consecutive upward bars. The price is currently above key moving averages, while the auxiliary indicators show a diminishing death cross, with fast and slow lines hinting at a potential golden cross. However, confirming this trend requires observing the strength and sustainability of future gains. The major range for BTC on the daily chart lies between the high of $73,800 and the low of $60,800.
Zooming into the hourly chart, yesterday’s U.S. trading session saw a dip to around $69,300, followed by a support-driven rebound in the early morning and today’s dawn. The price is now consolidating near higher levels. For the upward momentum to continue, it is essential that yesterday’s low holds; a breach would signal a return to range-bound trading. Thus, the short-term strategy for BTC contracts involves buying on dips.
BTC Short-Term Contract Trading Strategy:
- Entry: Buy around $69,700
- Stop Loss: Set at $69,350
- Targets: Aim for $70,700 to $70,800
Ethereum (ETH) Contract Technical Analysis
Ethereum’s daily chart closed with a minor bearish candle yesterday, breaking a series of green bars with a single red one. The price remains above moving averages, and auxiliary indicators continue to show a shrinking death cross. Yesterday’s price action was characterized by range-bound movement, with a dip during U.S. hours and a recovery in the early morning. Technical indicators do not yet signal a clear directional bias, suggesting that ETH will likely continue trading within its established range.
On the hourly chart, Ethereum dipped to around $3,540 during yesterday’s U.S. session, with resistance near $3,630. For the upward trend to persist, the price must not break below yesterday’s low, making the European trading session critical for determining today’s direction.
ETH Short-Term Contract Trading Strategy:
- Entry: Buy around $3,570
- Stop Loss: Set at $3,540
- Targets: Aim for $3,615 to $3,630
👉 Explore real-time trading tools
Frequently Asked Questions
What does a ‘death cross’ mean in technical analysis?
A death cross occurs when a short-term moving average crosses below a long-term moving average, often interpreted as a bearish signal. However, its relevance can vary based on market context and other indicators.
How should I adjust my strategy during range-bound markets?
In consolidating markets, focus on identifying key support and resistance levels. Use range-trading strategies like buying near support and selling near resistance, while always employing stop losses to manage risk.
Why is the European trading session important for cryptocurrencies?
The European session often brings increased liquidity and volatility due to overlapping activity from Asian and upcoming U.S. markets. This makes it a key period for confirming intraday trends and setting up trades.
What are the risks of using leverage in crypto contract trading?
Leverage amplifies both gains and losses. While it can enhance profits in successful trades, it also increases the risk of significant losses, especially in highly volatile markets like cryptocurrencies. Always use leverage cautiously and with proper risk management.
How can I identify genuine breakouts from false signals?
Genuine breakouts are typically accompanied by high trading volume and sustained momentum. False breakouts often lack volume and quickly reverse. Combining volume analysis with other technical indicators can help filter out unreliable signals.
Is it better to trade based on technical analysis or fundamental news?
Both are important. Technical analysis helps with entry and exit timing, while fundamental news provides context for long-term trends. Integrating both approaches offers a more comprehensive trading strategy.