A better term to use for day trading is ‘session trading,’ as its trades open and close within a single trading session. The trader sits down and begins flat, then walks away flat again – with no trades still open.
With that, day traders usually leave a small portion of a profitable position to run ‘overnight.’ However, this means that it is only a tiny fraction of the typical size of the ‘daylight’ or actively managed position where it originated from.
As everyone knows, day trading is very time intensive. It needs tight, active trading on small timeframes like 15 minutes, 5 minutes, or even 1 minute. Also, it can become very stressful, difficult, and challenging (and possibly very rewarding).
And during the entire trading session, it requires traders at least some degree of focus.
In addition to that, day traders might choose from a wide variety of trading strategies. Still, what all day traders have in common is searching a series of relatively small winning trades, with gains ranging from several pips to about 1.5% movement in price as a best-case winning trade scenario.
The name ‘ swing trading’ is made as to its trading style because these traders are trying to benefit from an instrument’s natural ‘swing.
Instead of focusing on an exact time, these traders try to spot the starting of a directional price movement, enter a trade, and hold on until the movement stops out when they take profit. Swing traders are ready to have trades open for some days or even several weeks if the ‘swing’ keeps going on.
Usually, swing trading is less time-intensive and practiced on higher time frames than day trading.
The most common time frame used is 4 hours, but some swing traders will make decisions according to 1-hour charts o use lower time frames to fine-tune entries and exits occasion.
Among the major attractions of swing trading is that traders can practice it by checking prices once every four hours – plenty of full-time employees can integrate into their work and leisure time.
Furthermore, swing trading needs far less time and effort than day trading.
Then, swing traders seek larger gains from price movements of between 1.5% to 5%, using commensurately wider stops to account for volatility inherent to 4 hourly or hourly price movements.
Also, they tend to use trend following or support and resistance style trading strategies, mostly supported by fundamental analysis as they try to catch larger price movements.
Day Trader or Swing Trader
A massive part of this decision is not a real decision at all because economics and time determine it. A lot of people must work full-time to meet their financial responsibilities, and even excellent trader will sometimes report wide fluctuations between their gains and losses over time.
So, nearly everyone can rule out full-time day trading as a realistic possibility. It can be that they have some time or a few hours where they can dedicate exclusively and intensively to trading every day.
But traders need to ask themselves if this is the right time.
Moreover, they will encounter more market opportunities being plugged in once every few hours consistently. After that, they will by being plugged in for some hours each. And that is just the way market runs.
If traders really wanted to become day traders, they would mostly master day trading once they mastered swing trading. So, that is a clear statement of what style they must start with.
Bitcoin Price Prediction: BTC freefall to $42,000 beckons amid extremely drained bullish front
- Bitcoin rejection from $52,000 leads to unstoppable declines under $50,000.
- Technical indicators flip bearish for Bitcoin, adding weight to the impending price drop.
- The IOMAP model reveals immense resistance ahead of BTC and robust support, hinting at a potential consolidation.
Bitcoin continues to explore price levels under $50,000 following a recent rejection at $52,000. Initially, traders anticipated support at the 100 Simple Moving Average (SMA) and the 50 SMA on the 4-hour chart, but the gravitational force seems extremely hard to stop.
Meanwhile, the bellwether cryptocurrency is trading slightly above $47,000. Short-term technical analysis shows that the least resistance path is downwards. This is emphasized by the Moving Average Convergence Divergence (MACD) on the same 4-hour chart.
The trend momentum indicator has also flipped bearish following the MACD line (blue) cross under the signal line. Additionally, the technical indicator is falling toward the midline and may extend the action into the negative region.
Bitcoin is expected to secure support at the 200 SMA to halt the losses. However, if push comes to shove, BTC will extend the bearish leg to $42,000 due to the lack of a robust support area.
BTC/USD 4-hour chart
The In/Out of the Money Around Price (IOMAP) model by IntoThepBlock bolsters the massive resistance ahead of the flagship cryptocurrency. Recovery from the current price levels to $50,000 will not come easy, especially with the selling pressure between $48,450 and $49,816. Here, nearly 1.1 million addresses had bought 504,000 BTC.
On the flip side, the same on-chain model reveals that Bitcoin’s downside is also strongly supported, which means that losses as far as $42,000 may not come into the picture. Consolidation may take place owing to the support running from $45,660 and $47,026. Here, approximately 739,000 had purchased 445,000 BTC.
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Bitcoin and Ether Whales Prepare for Market Rally as Altcoins Outperform Top Cryptos
Bitcoin and Ethereum whales are preparing for a renewed cryptocurrency market rally, grabbing as much of both cryptoassets’ total supply as they can before prices move up in the near future. According to crypto analytics firm Santiment, Bitcoin’s largest holder – those with over 1,000 BTC or more, worth about $49.8 million at press time […]
Bitcoin and Ethereum whales are preparing for a renewed cryptocurrency market rally, grabbing as much of both cryptoassets’ total supply as they can before prices move up in the near future.
According to crypto analytics firm Santiment, Bitcoin’s largest holder – those with over 1,000 BTC or more, worth about $49.8 million at press time – now hold 42.56% of the flagship cryptocurrency’s total supply, after dropping from 43.29% on February 8. Their large supply helped fueled bitcoin’s move to a new all-time high to $58,000.
Per the firm, if whales control over 43% of bitcoin’s total supply, it will be an “indication whales are looking to fuel another rally.”
Large holders taking over a larger portion of the cryptocurrency’s supply may help reduce selling pressure and even lead to a supply squeeze, as demand from other buyers remains while available supply drops significantly.
Santiment, as Daily Hodl reports, also revealed that Ethereum’s 10 largest addresses that are not controlled by cryptocurrency trading platforms are holdings the “most combined supply of ETH tokens (16.86M) since July 2016.”
Earlier this month, over 1 million ETH ($1.57 billion) was added to these addresses, showing they’re gearing up for a move upward.
In separate tweets, Santiment pointed out that while whales prepare for a BTC and ETH rally, smaller cryptocurrencies have been outperforming these blue-chip cryptos, likely because of demand coming in from retail investors.
Altcoins outperforming both BTC and ETH include Polygon (MATIC), Enjin (ENJ), Theta blockchain’s governance token Theta Fuel (TFUEL), and XinFin (XDC). These are outperforming bitcoin at a time in which the cryptocurrency struggles to remain above the $50,000 mark.
Other metrics point to an upcoming cryptocurrency rally. The amount of bitocin held on cryptocurrency exchanges has been steadily dropping over the last few weeks, to the point that over the last 30 days an estimated 46,900 BTC, worth over $2.3 billion, is believed to have left trading platforms.
The bitcoin balance on cryptocurrency trading platforms is often used by analysts to gain insights into what BTC investors are thinking. A large amount of bitcoin leaving trading platforms shows investors are looking to self-custody their funds, presumably because they plan to hold onto them for some time. This reduces selling pressure on the cryptocurrency.
Featured image via Unsplash.
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TA: Bitcoin Price Back Below 100 SMA, Why BTC Could Retest $45K
Bitcoin price failed to stay above $50,000 and $49,000 against the US Dollar. BTC is now below the 100 hourly SMA and it is likely to continue lower towards $45,000
- Bitcoin started a fresh decline below the $50,000 and $49,000 support levels.
- The price is now trading well below $50,000 and the 100 hourly simple moving average.
- There is a connecting bearish trend line forming with resistance near $49,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could extend its decline towards $45,000 as long as it is below $50,000.
Bitcoin Price Turns Red
After forming a short-term top near the $52,600 level, bitcoin started a fresh decline. BTC traded below the $51,200 and $50,000 support levels to move back into a negative zone.
There was also a break below a major bullish trend line with support near $49,500 on the hourly chart of the BTC/USD pair. The pair even broke the $48,000 support level. There was a clear break below the 50% Fib retracement level of the upward wave from the $43,050 swing low to $52,650 high.
It is now trading well below $50,000 and the 100 hourly simple moving average. It seems like the bulls are trying to protect the 61.8% Fib retracement level of the upward wave from the $43,050 swing low to $52,650 high.
Source: BTCUSD on TradingView.com
If they fail and the price trades below $46,500, there are chances of more losses. The next key support is near the $45,000 level, below which the bears might aim a test of the $43,000 support zone.
Fresh Increase in BTC?
If bitcoin stays above $46,500, it could correct higher. An initial resistance on the upside is near the $48,000 level. The first major resistance is near the $49,000 level and the 100 hourly simple moving average.
There is also a connecting bearish trend line forming with resistance near $49,000 on the same chart. To move into a positive zone, the price must clear the trend line resistance and then gain pace above the $50,000 barrier.
Hourly MACD – The MACD is now gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.
Major Support Levels – $46,500, followed by $45,000.
Major Resistance Levels – $48,000, $49,000 and $50,000.
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