The Bitcoin (BTC) trading market is ever-changing, and finding the right entry and exit points amidst the complex market conditions is a question that every trader contemplates. This article will share a practical trading method to help you better grasp the trends of BTC.

First of all, observing the trend chart is key. By analyzing recent trends, we can find that the market often follows certain predefined paths. This provides us with important evidence for predicting the overall direction.

After determining the general trend, how to open a position becomes crucial. Taking the recent market as an example, the resistance level on the 4-hour chart is around $1089. When the price touches $1087 and starts to pull back, many people may consider setting a short position at $1089. However, this approach often proves difficult to succeed.

A wiser strategy is to set short positions about 500 points below the resistance level. This can improve the success rate of getting on board while also giving the price some room to move.

Setting stop-loss is equally important. To avoid losses from false breakouts or breakdowns, it is generally recommended to set the stop-loss level about one point above resistance or below support. This setting both protects your funds and is not easily triggered by market fluctuations.

Looking at the BTC daily chart, we can clearly see a strong rally after a false breakdown near the price of 100,000 USD. This situation is not uncommon and once again confirms the importance of setting reasonable stop-losses.

It is important to emphasize that there are various trading methods, and there is no absolute right or wrong. What matters is finding a strategy that suits you and continuously optimizing it in practice. When encountering similar trends, it is advisable to set an appropriate profit and loss ratio based on your risk tolerance, and then decisively open a position.

Remember, successful trading requires not only accurate market analysis but also strict risk management. I hope these suggestions can help you achieve better results in BTC trading.