Easy Way to Trade Bitcoin in 2023

In this post, I go through an easy way to trade bitcoin in 2023. Not only that, but I will give you my insight on what Bitcoin will do within the next 2 years.

Before we begin with the actual analysis you have to follow these steps. Go to the TradingView platform and open BTCUSD on your chart. I suggest Tradingview, because it is the best platform to analyze any currency pair, cryptocurrencies etc.

I will take you through everything you need to know step-by-step.

Easy Way to Trade Bitcoin in 2023: Understand Imbalances

In order to understand what Bitcoin will do in the upcoming years, we need to know what the large institutions and banks do. We have to analyze the charts properly, and understand what periods of accumulation of distribution are.

On the image above, we see a distribution taking place. It is the distribution that took BTC price from the absolute highs to the price that it is right at the moment I am writing this blog post.

This distribution would take place sooner or later for a very particular reason.

On the image above, we are on the Weekly timeframe on BTCUSD. I have zoomed into previous areas of imbalance. Imbalances are the reason why price has to come and retest those points. Without them, you will not be able to find an easy way to trade Bitcoin.

You can identify imbalances when you see candlesticks such as the one highlighted on the bottom left not getting “covered” either by their left candlestick, or by the immediate candlestick on their right.

So, what is an imbalance, and why price needs to retrace to these previous points of interest (POIs)? An imbalance is created when there is too many buyers or sellers without the counterpart “balancing” those areas.

What does this mean?

A Buyer For Every Seller

One first proof for people who are new to those concepts is this first example, when BTCUSD left an imbalance between 4170 and 4903. What do we see? We see that price came back to re-test this area and to bring an equal amount of sellers to the amount of buyers that initially pushed the price hard without having an existence of an equal amount of sellers.

Remember, for every buyer you need a seller, and the other way around. For every seller, there needs to be a buyer.

The imbalances that I highlighted on the image above, are the areas that BTCUSD needs to retrace to. Hence, BTCUSD has to retrace to at least 7820.

Now that we understand the logic behind Bitcoin’s retracement, we will proceed with an easy way to trade Bitcoin in 2023.

Step 1. Identify Past Patterns in Order to Easily Trade Bitcoin in 2023

It is important to understand that Bitcoin is not moving the same way as currency pairs do. Even though there are many similarities, we still need to be able to identify price action patterns that are specific to BTCUSD.

First and foremost, as of the writing of this blog post, we are at a point in price (19122) where we filled the first imbalance. You can see that by the first yellow arrow on the top left. We expect price to retrace way more and fill all these other imbalances as well.

So, how do we identify patterns in order to easily trade Bitcoin in 2023?

On the image above, we identified a price action pattern on BTCUSD. Remember, past price action is all we have. We are not wizards. We just try to predict the next price movement as good as we can.

What do we see? We see a first retracement leg (first red ellipse) which broke a first structure, then an almost equal high, and then a break of structure above the equal highs (second red ellipse). We are still analyzing Bitcoin on the Daily timeframe.

Furthermore, price came back and tested a minor order block. This is a major difference between trading Bitcoin and any other currency pair. As an example on EURUSD we would expect clear retracements from major order blocks. Here we do not see that at all.

Step 2. Compare Past Price Action With The Present

Look at the pattern which I indicate with the bottom right yellow arrow. It resembles the past price action pattern that we see on the top left. Even though on the top left we broke price action twice with the retracement, on the current price action we broke price action three times.

Furthermore, in the present example, price did not test any order blocks. What is a major difference that we see between the two examples though?

On the top left (past price action), we see that we broke structure impulsively with strong bearish candlesticks. Such thing did not happen in the present. This leads us to believe that price might retrace.

On the image above I have highlighted yet another high probability area from which BTCUSD might retrace. We are not wizards, we are traders. We are trying to make the best predictions in order to enter the highest probability trades possible.

Step 3. Scale Down to The 15 Min Time-Frame in Order to Easily Trade Bitcoin in 2023

We can indeed trade Bitcoin easily in 2023 if we identify past price action on the 15min timeframe. Look what happened on the image above. BTCUSD retraced from this insignificant 15 min time-frame point of interest (POI), and it gave us a 34/1 RR already. We did not see a retracement to major POIs.

As we said, now we are looking for short trades until Bitcoin fulfills the past imbalances that we talked about earlier one. When this happens, we will be able to open buy trades

What we can do, is scale down to the 15-min time frame and look for all possible Order blocks and POIs from which price might retrace.

POIs On The 15 Min Time Frame

We highlighted all POIs on the 15min time frame. If price retraces back to any of these, we will look for short trades. In other words, we will look for sell opportunities. Now things are getting easier. We will make Bitcoin trading easy by targeting the imbalances that we talked about. It would look something like that

Potential Reactions on 15 Min POIs

If Bitcoin retraces to one of the above POIs, we can easily go and target the two imbalances that we talked about earlier on. These would give us massive profits already, 67/1 RR, 90/1 RR, and 78/1 RR respectively. We do not know which one would be the right one, and we do not know if any one of those POIs will be the right one. We just speculate based on past price action and on our analysis.

Before I show you how I will easily trade Bitcoin in 2023, when it will have more likely than not retraced to fulfill the imbalances, I will take you through different scenarios.

Scenario 1. Massive Increase Followed By Massive Selling Pressure

This is another very likely scenario for BTCUSD. It might hit the 28600 – 32295 area and then retrace towards the imbalances.

It might also retrace to the 36829-40541 area giving the false impression that it is now on the rise again, and then it might fall aggressively towards the imbalances that we talked about, creating more imbalances in the way.

And another scenario is something in between. It might retrace to the 26600 – 32295 area, then fall down again and then retrace one more time to the 36829 – 40541 area (as depicted in the drawing above), before it falls massively towards the imbalances we talked about.

Whichever the case is, we know that it has to come down and fill in the imbalances we talked about. It is the most probable thing to happen.

Scenario 2. BTCUSD Bringing Confusion

This is yet another scenario, as I have drawn it on the image above. Price might retrace to the 11748 – 12737 level and then give the false impression that it is on the rise again.

Afterwards, price might come back to the 7797 – 8234 level, to finally fulfill the last imbalance that was created on the 28th of April of 2020. Then, we can easily trade Bitcoin and even expect new highs in 2023.

And now, the moment that you have all been waiting for. How to easily trade Bitcoin in 2023 if it hits one of the imbalances. In other words, how to buy BTCUSD in these areas

The Moment You Have Been Waiting For – Buying Bitcoin in The Areas of Imbalance

This is the moment you have been waiting for. If you want to know how I will enter buy trades on Bitcoin, keep reading this article.

Once again, in order to make things clear for you, I show you an image of the two imbalances that we identified at the beginning of this article. Now, since we know that both of them need to be fulfilled, I will focus only on the imbalance between the price of 7797 – 8234.

There is one more imbalance that we need to pay attention to though. It lies between the price of 5558 – 5649. If you pay close attention between the wicks of the bearish (red) candlesticks, you will notice that price did not get fulfilled by an equal amount of sellers. Hence this is a last level that we need to pay attention to.

Imbalance Equals To POI For Placing a Trade?

See how the imbalance that was created on the 2nd of April of 2019 got fulfilled on the 13th of May 2020? Not only that, we went and tested the bullish order block below it and then bounced from there. That’s what you need to keep in mind. The imbalances will get fulfilled, but more likely than not, price will react from an even lower POI such as an OB.

Where Will I Enter My Trades And How?

1. Pending Orders At OBs Below The Imbalance Between 5558 – 5649

Let’s start with the lowest imbalance that we have identified (between 5558 – 5649). There are two OBs below this imbalance which are “responsible” for the BOS above the previous high. I highlight both of them as you can see with the yellow highlighted areas above. I will place pending orders on both of them. They will look like that in the image below.

In this occasion, I will place two buy limit orders. One at 5402 with a stop loss (SL) at around 5249. I will target new highs. If this plays out, it will give me a 410/1 reward to risk (RR). The second one will go at 5124 with a SL at around 5000.

2. Pending Orders At OBs Below The Imbalance Between 8188 – 7802

I will further place pending orders at the following OBs. One will go at 7677 with a SL at 7363. The second one will go at 7139 with a SL at 6686.

Now remember, there are many ways that I will be entering trades throughout the whole price action. I will not only enter with pending orders. We can always follow price action within those levels in order to increase our probability of winning trades. Just scale on a lower time frame once price retraces back to the aforementioned levels. That way, you can easier follow patterns and price action within those levels.

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Trading strategies (including this strategy on how to easily trade Bitcoin in 2023) can be very risky if you do not control your emotions and if you do not have a strategy which is giving you a statistical advantage.

It is normal that you will go through periods of consecutive losses and consecutive wins as well. If you want to be able to calculate those aspects of trading in advance and build a robust winning strategy, then you can check out my courses.

In the courses, I teach you elaborate winning trading strategies. Furthermore, I teach you how to build a robust trading plan, starting with the importance of statistics and trading psychology. That way, you can take your trading to the next level.

As with all trading strategies presented here on ChrisFX, if you want to test them out, do so by trading with fake money, or otherwise paper money. NEVER test one of these strategies with real money. When and if you decide to do so, you do so at your own risk and I take zero responsibility for your actions.

Enjoy 🙂