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Buy and Sell Limit Orders for Bitcoin - Place Pending Limit Orders

Limit Order Definition - An entry limit is an order to buy/sell Bitcoin at certain price which is a pull-back area where the price is predicted to retrace to before it resumes the original trend. BTC/USD Crypto traders use limit orders to buy or sell at better price.

This type of entry order facilitates opening buy positions below market levels during upward retracements or sell positions above market levels during pullbacks in downward trends.

Buy Limit - When buying, your entry buy limit is executed when the market falls to the price you have specified. (Price retraces down) Sell Limit BTC/USD Order - When selling, your entry sell limit is executed when the market rises to the price you have specified. (Price retraces up)

Entry limit orders are set by Bitcoin traders when they expect the price to bounce back after reaching to the retracement level where they have set their limit orders.

Buy Limit Order to open buy at a level below the prevailing price

A Sell Limit instruction to open a short position at a price level situated higher than the current spot price.

Buy Limit Example

In the example below, a buy limit order was placed to buy Bitcoin at a price that was less than what it was currently selling for. The buy limit order is at point B.

Set Buy/Sell Entry Limit Orders on Bitcoin - Pending Entry Limits for BTC

Buy Limit Order Placed Below the Current Bitcoin Price

Subsequently, the price corrected downwards, hitting an active buy limit order. Once this buy limit order was triggered, it converted into a live buy trade, and following this execution, the price continued its ascent in line with the previously established market direction, as illustrated below.

Setting Buy and Sell Limit Orders for Bitcoin – How to Enter Pending Orders

Buy Limit Order Executed - Order Now Changes to a Buy Trade

Once the buy limit order triggered, it turned into an active buy trade. The uptrend picked back up, and prices kept climbing. Traders grab better entry prices after a pullback with this order. Know the right spot to place buy limit orders. Avoid setting them too far out, or the pullback might miss them and skip the trade. Don't place too close either. Bitcoin traders rely on Fibonacci retracement levels to find ideal spots for these entry orders.

Sell Limit Example

A sell limit order was placed in the instance below to start selling at a price that was higher than the existing market price. The sell limit order is placed at point B.

Buy Entry Limit Bitcoin Orders and Sell Entry Limit Bitcoin Orders

Sell Limit Order Placed Above the Current Bitcoin Price

The price then rallied and went up to hit the sell entry limit order. When sell limit order was executed it changed into a sell trade as shown - afterwards the price continued to move downward in direction of the original market trend like is shown below.

Buy Limit and Sell Limit BTC Orders - Set Bitcoin Limit Pendings

Sell Limit Order Executed - Order Now Changes to a Sell Trade

After the sell limit order was done, it became a sell trade: then, the price went down again, as it did before, and kept going down. A trader who uses this kind of sell limit order sells when the price is better after it has moved back up a bit. Traders should also know the best spots to put entry sell limit orders so they are not too far away, which means the price might not go back up to their order, and they would miss the trade. Also, they should not put the orders too close. Traders should use Fibonacci Retracement areas to find the best places for their entry sell limit orders.

Setting Buy & Sell Limit Orders on the MT5

To position BTCUSD orders within the MT5 interface, simply initiate a right-click on the BTCUSD graph, navigate to "Trading," and then select "New." Once the configuration window materializes, adjust the order specification from "market execution" to "pending." Subsequently, select either "Buy Limit" or "Sell Limit" based on your intended action. Proficiency is generally achieved after a couple of repetitions.

Bitcoin Buy and Sell Limit Entry Orders - Set Entry Limits for Bitcoin Trades

Putting Limit Orders on MT5 Platform - Buy Limit and Sell Limit

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