One of the simplest approaches is to trade in the direction of the dominant market trend. You can use moving averages such as the 20 EMA, 50 EMA, and 200 EMA to identify momentum.

For example, if Bitcoin is trading above its 50 EMA and 200 EMA, while the 50 EMA is above the 200 EMA, the market may be considered bullish. Instead of immediately buying, wait for the price to pull back toward a support area or moving average. If buyers step in and price begins moving upward again, that can provide a potential entry.

The important idea is not to buy simply because the market is rising. Wait for confirmation and define your stop-loss before entering.