Bitcoin (BTC) trading strategy
1. Trading goals
• Short-term goal (optional): Profit from short-term price fluctuations (intraday or weekly trading).
• Long-term goal (optional): Achieve asset appreciation through long-term holding (1-5 years).
• Expected return: Set reasonable goals, such as 5-10% profit in the short term, 50-100% in the long term (depending on market conditions).
• Risk control: Each trade risk should not exceed 1-2% of account funds.
2. Market analysis
• Technical analysis:
• Key indicators: Use moving averages (MA50, MA200), relative strength index (RSI), Bollinger Bands, support/resistance levels.
• Entry point: Enter at key support levels (such as recent lows or historical support) or after breaking resistance levels.
• Exit point: Consider taking profits when RSI is overbought (>70) or when reaching resistance levels.
• Fundamental analysis:
• Pay attention to BTC market news (such as ETF approvals, regulatory policies, halving events).
• Track on-chain data (such as trading volume, open interest, miner activity).
• Refer to real-time discussions on platform X to get market sentiment (can analyze X posts upon specific request).
• Current market situation (as of June 4, 2025):
• BTC price is highly volatile, influenced by macroeconomics (such as Federal Reserve policies), institutional participation, and geopolitics.
• Pay attention to whether BTC breaks through recent highs (such as the $70,000-$80,000 range) or falls to key support (such as $50,000-$60,000).
3. Trading strategy
• Short-term trading (swing/intraday):
• Buying conditions:
• Price touches the support level and RSI<30 (oversold).
• Break through key resistance levels accompanied by high trading volume confirmation.
• Selling conditions:
• Price touches resistance level or RSI >70 (overbought).
• Achieve target profit (such as 5-10%) or stop-loss point (-2%).
• Tools: Use limit orders to avoid high volatility slippage, set stop-loss orders to control risk.
• Long-term holding (HODL):
• Dollar-cost averaging (DCA): Invest a fixed amount (such as $100-$500) in BTC monthly to lower the average purchase price.
• Hold until bull market peaks (such as BTC breaking $100,000) or set long-term target price.
• Use cold wallet storage (such as Ledger, Trezor) to ensure asset security.
• Mixed strategy:
• 80% of funds for long-term holding, 20% for short-term trading.
• Short-term trading profits can be reinvested in long-term holdings.
4. Risk management
• Position management:
• Single trade should not exceed 10% of total funds.
• Total investment should not exceed funds that can be afforded to lose (such as 10-20% of annual income).
• Stop-loss/take-profit:
• Set stop-loss for each trade (such as -2% or below key support).
• Take-profit point set according to target profit or technical resistance level.
• Emotional control:
• Avoid FOMO (buying high) or panic selling.
• Follow the plan, do not adjust arbitrarily due to market sentiment.
5. Execution and recording
• Trading platform:
• Choose low-fee, reliable exchanges (such as Binance, Coinbase, Kraken).
• Ensure two-factor authentication (2FA) is enabled to protect account security.
• Keep a journal:
• Record the entry price, exit price, reasons, and profit/loss for each trade.
• Weekly review, analyze the effectiveness of the strategy.
• Tool support:
• Use TradingView for technical analysis.
• Follow cryptocurrency community dynamics on X (such as @CryptoQuant_com, @Glassnode) for market insights.
7. Notes
• Taxation: Understand the cryptocurrency tax policies in your country/region, and record transactions for tax reporting.
• Security: Avoid storing BTC on exchanges for long periods, prioritize using cold wallets.
• Market volatility: BTC price is highly volatile, be mentally prepared, do not invest with borrowed funds.
• Information updates: You can ask me to search for the latest BTC trends on X or the internet anytime to get real-time market sentiment or news.
Disclaimer: This trading plan is for reference only; the cryptocurrency market is highly risky. Please consult a professional financial advisor before investing.
