How to Trade a Bitcoin Downtrend
Down Bitcoin trend is when the bitcoin trading price of a cryptocurrency chart is moving lower & lower. Bitcoin Trading bitcoin prices generally close lower than where they opened.
How to Trade Downwards Bitcoin Trend: Bitcoin traders use the downwards bitcoin trend direction to open sell bitcoin trades
Drawing a Downward Bitcoin Trend Line
When it comes to learning how to draw a downward bitcoin trend line, you need to know that when the btcusd trading market is bearish it forms lower lows and lower highs forming a downwards general bitcoin trend direction - downwards cryptocurrency trend. These are the points that are used to draw a downward bitcoin trend line.
To draw downwards bitcoin trend setup we use resistance levels and to do it correctly two resistance areas are needed. When bitcoin trading price touches this downward bitcoin trend line, then we open sell cryptocurrency trades & place stop loss just a few pips above the sloping resistances:
How to Trade a Downtrend? - Strategy for Trading a Bitcoin Downwards Trend
Trading This Down Bitcoin Trend Market Move
When trading with this down bitcoin trend method, this crypto downward bitcoin trend setup will show the general direction of the market as downwards therefore bitcoin traders will only open short sell cryptocurrency trades. These resistance levels are the levels where if bitcoin trading price retraces then these points will provide strong resistance. This is why many crypto sellers will wait until bitcoin trading price retraces upward & hits these retracements levels to open sell cryptocurrency trades. Trades opened at these levels have a high Reward to Risk Ratio and have little drawdown.
For Example, in the above downwards bitcoin trend example, a trader would have opened short sell bitcoin trading signals at the resistance 1, resistance 2, resistance 3 and these sell cryptocurrency trades would have been opened with minimum amount of draw down/retracement.
How to Draw a Downwards Bitcoin Channel
A downward crypto channel is plotted by plotting a line that's parallel to the downward bitcoin trendline and then adjusting it to touch the bottom boundary of the bitcoin price movement. This then forms a channel & as long as the bitcoin trading price stays between these 2 channels the general market down bitcoin trend direction is intact the btcusd trading market direction will continue being bearish.
How to Draw Downward Crypto Channel - Crypto Downward Trend Trading Strategy
Trading the Downwards Bitcoin Channel
The downward crypto channel is used by cryptocurrency traders to show levels where it best to take profits. Traders will take some profit once the bitcoin trading price touches the lower channel or the lower channel & wait for another retracement before opening a short sell bitcoin trade again.
