Knowing the daily bias (short-term trend direction) is crucial for making profitable trades in crypto.
What is Daily Bias?
Daily bias refers to the dominant short-term trend (bullish, bearish, or neutral) that helps traders decide whether to buy, sell, or wait.
3 Types of Market Bias:
Bullish Bias → Price is likely to go UP (Buy/Long opportunities).
Bearish Bias → Price is likely to go DOWN (Sell/Short opportunities).
Neutral/Ranging Bias → No clear direction (Wait for breakout).
📊 5 Ways to Determine Daily Bias in Crypto
1. Check the Higher Timeframe Trend (HTF Bias)
Daily/Weekly Chart → Determines the primary trend.
Price above 200MA (Moving Average) → Bullish.
Price below 200MA → Bearish.
Example: If Bitcoin is above the 200MA on the daily chart, the bias is bullish.
2. Key Support & Resistance Levels
Price holding above support → Bullish bias.
Price rejecting resistance → Bearish bias.
Breakout above resistance → Confirms bullish trend.
3. Candlestick Patterns & Momentum
Bullish Signals:
Higher highs & higher lows.
Green engulfing candles, hammers.
Bearish Signals:
Lower highs & lower lows.
Shooting stars, bearish engulfing.
4. Volume & Order Flow Analysis
Increasing volume on up moves → Bullish confirmation.
High sell volume at resistance → Bearish reversal likely.
5. News & Sentiment Analysis
Bullish Catalysts:
ETF approvals, institutional buying, Bitcoin halving.
Bearish Catalysts:
Regulatory crackdowns, exchange hacks, macroeconomic fears.
Tools:
CryptoPanic (News aggregator).
Fear & Greed Index (Market sentiment).