In our latest Learn 101 livestream session, crypto experts shared insights on the shifting dynamics of the stablecoin ecosystem.

 are making a comeback, but this time, the competition is heating up. While 

 continues to dominate the market, a new wave of 

 is emerging, each with its own proposition. From institutional-backed tokens to 

, the race is on to determine which stablecoin will take the lead. What sets these newcomers apart — and could any of them realistically challenge USDT’s throne?

, we tackle the big question: Newcomers vs. USDT: Who Will Win?

, provides a recap of our Learn 101 livestreams, offering you comprehensive expertise and insights from leading figures in the crypto industry in case you miss the livestream.

Joining the livestream on Apr 24, 2025, were two distinguished guests: Paz Gonzalez, trader and founder of 

magazine, and Jip Molenaar, full-time trader and co-founder of Tribe Capital. Under the moderation of Sabrina Chua, Crypto Evangelist and Senior Content Strategist at Bybit, this episode takes a deep dive into the shifting dynamics of the stablecoin ecosystem.

Why the world is suddenly crazy about stablecoins

Stablecoins are once again making headlines — but what’s driving this renewed momentum? Several key developments have pushed stablecoins into the mainstream conversation, including Donald Trump’s recent proposal for a 

. According to Paz Gonzalez, these announcements signal a broader shift tied to the weakening influence of the US dollar. In times like these, stablecoins could gain mass adoption, giving governments a way to reassert monetary control through a digital proxy.

Jip Molenaar agrees with Gonzalez, adding that Bitcoin is unlikely to become the world’s primary currency, despite what many once believed. Instead, Molenaar sees Bitcoin’s future role as that of a store of value — 

 — while stablecoins will take on the role of everyday money, used for payments, bill settlements and daily transactions. 

, Molenaar argues, has helped bring digital assets into the political mainstream, making the concept of crypto usage more palatable to the general public than ever before.

Molenaar also shares his personal experience transitioning from euros to USDT, a process he describes as challenging and significant. Living in Europe, switching to a US dollar–pegged stablecoin wasn’t easy — and that’s precisely why he believes most users won’t readily jump to new alternatives. For many, USDT and 

Paz sees Fidelity’s entry into stablecoins as a bullish signal for the industry. As a well-established and trusted financial institution, Fidelity’s involvement could sway skeptics who have traditionally avoided crypto. Its participation brings credibility — and potentially, a new wave of adoption.

He also emphasizes that the legitimacy of any currency, fiat or crypto, depends upon being backed by a clear source of value. Historically, 

. For stablecoins to earn that trust, the same principle applies — they must be transparently backed. Today, more investors recognize that leading stablecoins are supported by reserves, and are subject to increasing regulatory oversight.

However, despite this progress, Molenaar remains cautious. He warns that another event like the 

 is still possible if stablecoins aren’t properly backed and transparently managed. Without clear support mechanisms, he believes trust will erode — and widespread adoption will stall.

USDT currently holds the largest market share among all stablecoins and is the most actively traded. Molenaar attributes this dominance to the convenience and wide acceptance of USDT across trading platforms. He points out that the infrastructure for USDT is already deeply entrenched in the crypto ecosystem, making it far easier to execute trades and move funds. Because of this strong foundation, he believes it will be extremely difficult for any competing stablecoin to unseat USDT.

Gonzalez agrees: while she personally holds some USDC, she says that when people ask her to send a stablecoin, it’s almost always USDT. Even though USDC has made efforts to challenge USDT’s dominance, Gonzalez doesn’t see that happening anytime soon — if ever. She also underscores the fact that stablecoins like USDT aren't meant to be investments in the way Bitcoin or altcoins are. Instead, they serve more practical purposes, facilitating transactions and providing stable on-chain alternatives to fiat.

Molenaar adds that older generations, particularly baby boomers, tend to wait until new markets are validated by trusted institutions before getting involved. With firms like Fidelity now backing crypto through 

 (ETFs) and exploring stablecoin adoption, that validation is underway. Because Fidelity has integrated USDT into its ecosystem, Molenaar believes that conservative investors will naturally gravitate toward it over less familiar alternatives.

Gonzalez also shares her approach to risk management. Rather than going all-in on one asset, she diversifies and experiments cautiously — allocating small amounts to new opportunities. 

, for example, is one method she uses to generate passive income while testing out new protocols or tokens.

When it comes to adoption, Gonzalez sees real-world use cases driving interest in stablecoins. She mentions the new Wyoming stablecoin, which offers local taxpayers a slight reduction on their annual tax bills. While its benefits may currently apply to a small group, she believes this kind of practical utility is crucial. To achieve broader adoption, stablecoins — including smaller, emerging ones — need meaningful use cases tied to local economies. 

Still, for global accessibility and widespread usage, she maintains that a well-established option such as USDT is essential.

Stablecoins and trading — what really matters to traders

Molenaar is all-in on USDT, choosing to avoid the risks that come with lesser-known stablecoins. For him, USDT offers the highest liquidity and the lowest risk, due to its widespread adoption. While he's open to switching if a new, dominant stablecoin emerges, he’s not willing to gamble on smaller or less established options at this time.

Gonzalez adds an important perspective: stablecoins don’t just enable transactions — they also reflect the health and movement of the broader crypto market. Since stablecoins support liquidity within cryptocurrency networks, their flows can signal shifts in underlying asset trends. Traders are beginning to pay more attention to this relationship.

While most stablecoins are backed by USD, some stablecoin creators are now exploring alternative pegs, such as gold. But for Gonzalez, the backing isn't the main concern: usability is. She prioritizes the ease with which a stablecoin can be used for trading. In her view, investors today care more about functionality and integration with platforms than the specific assets backing the coin. 

Molenaar agrees, adding that ease of use often comes down to habit — knowing the ins and outs of how to trade with a particular coin saves time and effort. He also points out that staking stablecoins typically yields higher returns than do traditional bank savings accounts. That’s one reason he keeps minimal funds in banks — in addition to his distrust of the traditional banking system. He prefers to let his funds work for him through stablecoin staking.

Gonzalez also sticks with USDT because of its simplicity and reliability. She takes a cautious, thoughtful approach to her finances, due to her awareness of how hard she works to earn her money. When trading with USDT, she invests time in researching opportunities. Therefore, she believes that having a deep understanding of stablecoins is crucial in order to make smart financial decisions.

Both Molenaar and Gonzalez highlight the importance of using a trusted platform when holding and trading stablecoins. Molenaar uses Bybit because he feels confident his funds are secure there, and Gonzalez echoes this sentiment — rather than spreading her assets across multiple exchanges, she sticks with Bybit for its reliability and trustworthiness.

This episode of Learn 101 offers a thought-provoking look at the battle between emerging stablecoins and the reigning stablecoin leader, USDT. While newer stablecoins may bring niche advantages and localized utility, USDT’s deep liquidity, global reach and entrenched usage continue to give it a clear edge. For now, USDT remains the go-to choice. But as the ecosystem continues to evolve, the race is far from over.

Intermediate

Bybit Learn Livestream Newcomers vs. USDT: Who will win? featured image

EN_2504-T53331_Learn Livestream_Speakers_1600x900_B.png

Learn Live ICYMI: Can the upcoming stablecoins beat USDT?

Bybit Megadrop is a token launch platform that lets users earn free airdrops by subscribing to Fixed-Term Bybit Savings plans and completing simple tasks.

The crypto world never sleeps — and neither do opportunities to earn. One of the most exciting ways to get in early on promising projects is through token launches, whereby new cryptocurrencies are introduced to the market. Traditionally, early participation comes with barriers: you might need to stake, trade heavily or rely on luck in oversubscribed launchpads.

Bybit Megadrop changes the game by offering a more rewarding and accessible way to earn free tokens before they hit the market — all while growing your savings.

In this article, we’ll explain what Bybit Megadrop is, how it works, the benefits of joining, how to participate and whether it’s the right fit for your crypto strategy.

 is a token launch platform that lets users earn free 

 by subscribing to Fixed-Term Bybit Savings plans and completing simple tasks.

This new platform integrates Bybit Earn with early-stage 

 projects, giving users exclusive access to rewards before tokens go live on the Bybit Spot market. Think of it as a smarter, more educational and risk-free way to “airdrop farm” — but with real structure and substance.

Bybit Megadrop combines savings, learning and rewards into a unified experience. Here's how the flow works.

1. Subscribe to a Fixed-Term Bybit Savings plan

To participate, users must first subscribe to a Fixed-Term Bybit Savings plan using eligible tokens specified on the event page. These tokens could include MNT, USDT, USDC or BBSOL. This isn't just a gateway to Megadrop — it's also a way to grow your holdings. While your funds are locked for a fixed period, you earn interest through Bybit Earn.

This subscription acts as your entry ticket to Megadrop.

Once you’ve subscribed, you’re entitled to a portion of the airdrop rewards from the featured token’s project. These airdrops are typically distributed before the token is publicly listed on Bybit, giving you early exposure and the potential for upside if the token gains traction post-listing.

The amount of airdrop you receive depends upon your subscription amount, the total amount subscribed by all participants and whether you complete additional side tasks.

Please note that you will need to claim your airdrop rewards manually once the event ends.

3. Complete side tasks for bonus airdrops

To boost your airdrop share, you can complete optional side tasks. These tasks are simple, and are meant to educate users about the project and keep them engaged on the Bybit platform. Examples include:

Completing more tasks will grant you more points, which essentially results in a larger share of the token airdrop pool.

Bybit Megadrop isn’t just another airdrop campaign — it’s a win-win experience for users looking to maximize value with minimal risk.

The best thing about Bybit Megadrop is that when you subscribe to a Fixed-Term Bybit Savings plan, you don’t just earn the plan's regular APR — you also get free airdrop tokens. It's passive income layered with passive rewards.

Taking part in Bybit Megadrop will enable you to obtain tokens before they hit the Spot market, which could offer potential upside if the token rallies post-listing.

The barrier to entry is low, and there’s no need to buy or stake new tokens. You simply use what you already have in savings, and get rewarded on top of your fixed return — with no strings attached.

Looking to upsize your earnings? Simply complete more side tasks to earn more points. This way, you’ll be able to increase your chance of getting more tokens airdropped to your account.

Now that you have a better understanding of what Bybit Megadrop is, let’s explore how you can get started. If you don’t already have a Bybit account, you’ll need to create one. You can also check out our 

: Log in to your Bybit account and hover your cursor over the 

Select the event you would like to participate in. You will then need to subscribe to a Fixed-Term Savings plan on Bybit Earn to accumulate points. The eligible plans will be listed under the corresponding project on the Megadrop page. 

You may also complete tasks with point multipliers to earn points faster.

Once the event ends, the airdrop you receive will be based on your share of points earned in each pool.

Bybit Megadrop is designed for all types of crypto users, from beginners to veterans, and offers a compelling, low-risk way to access new token launches.

If you're someone who’s already using Bybit Earn, then Bybit Megadrop is a natural next step. It enhances the value of your fixed-term savings by layering on free token airdrops from promising web3 projects. You get to earn both APR and tokens, without having to take on additional investment risk.

Even if you’re new to Bybit, Megadrop makes participating in token launches easier and more rewarding. There’s no need to buy new or volatile assets — just deposit what you already have into a Fixed-Term Savings plan. That’s it — and you’re now eligible for airdrops.

For users who enjoy completing tasks or learning about new projects, the optional side missions are a fun way to earn additional tokens while becoming more familiar with the web3 ecosystem. If you're a retail user looking to stretch your capital, these tasks give you a chance to unlock a much larger share of rewards.

In short, if you're looking for a safe, flexible and engaging way to access new tokens early (without spending more or risking your funds), then you’ll absolutely want to consider joining Bybit Megadrop.

Bybit Megadrop combines the best of both worlds: steady earnings from savings and exciting token rewards from new projects. It’s a win for long-term holders, risk-averse users and web3 explorers alike.

Ready to try it? Subscribe, complete a few tasks and claim your share of the next big token — before anyone else!

Beginner

Bybit Megadrop.png

Bybit Megadrop: A smarter way to earn airdrops from new tokens

Tezos’ Rio upgrade enhances staking flexibility, speeds up operations 3x, and allocates 10% rewards to boost L2 adoption via the Data Availability Layer (DAL). 

The S&P 500 futures rose after news of US-China trade talks, rebounding from Tuesday’s 0.77% decline as investors await the Fed’s rate decision and Powell’s guidance. Gold climbed above $3,400, buoyed by a weaker US dollar and risk-off sentiment, and is technically bullish with momentum targeting a retest of the $3,500 record high ahead of the Fed’s policy decision. The Coindesk Indices, which tracks the broader crypto market, rose 1.64%, with Bitcoin up 0.69% and Ether down 1.87%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is KAITO, which surged 39.2% after Kaito AI announced $71M in distributed rewards and unveiled upcoming products.

Kaito (KAITO), founded in 2022, is a $1,099/month AI-powered crypto search engine that aggregates data from web3 sources like Twitter, Discord, and forums, using advanced AI to deliver context-rich, sentiment-filtered insights. Kaito AI has 

 over $71M in rewards to users within 5 months of launching Yaps, excluding the upcoming $KAITO airdrop, with more products like Kaito Earn, Connect v2, and Capital Launchpad on the way.

Check out the latest prices, charts, and data of 

 upgrade enhances staking flexibility, speeds up operations 3x, and allocates 10% rewards to boost L2 adoption via the Data Availability Layer (DAL). It reduces staking cycle times from 3 days to 1, tightens baker inactivity rules for better network resili`ence, and strengthens Tezos’ position for L2 scalability and user experience improvements.

Yesterday, BTC spot ETFs saw total outflows of $122.4M, with $89.9M from GBTC and $32.5M from non-GBTC funds.

, a decentralized bandwidth marketplace, launched its node for users to earn points and qualify for a future airdrop by sharing unused internet. Users can run a free node, earn 1 point every 10 minutes, and boost earnings via quests and referral codes.

4.png

Tezos Rio upgrade boosts staking speed and L2 incentives with improved network resilience

In this article, we’ll look into Bybit Pay, how it works and provide you with a step-by-step guide to sending and receiving payments on Bybit Pay.

 is a next-generation payment solution that enables users to send and receive crypto or fiat with just a few taps via QR code or internal transfer. Whether you're settling bills, splitting payments with friends or running a global business, Bybit Pay simplifies cross-border transactions within a secure and intuitive environment.

In this article, we’ll walk you through Bybit Pay, show you how it works and provide you with a step-by-step guide to sending and receiving payments on Bybit Pay.

 is a powerful payment service designed to connect your crypto wallet to real-world financial needs. Whether you're sending money to friends or making payments to merchants, Bybit Pay allows seamless transactions conducted in both crypto and fiat — all from within the Bybit platform.

Its mission is to bridge the gap between digital assets and traditional finance by enabling users to spend their crypto effortlessly, just like they do with cash. With support for currencies like BTC, ETH and USDT (and even fiat such as BRL), Bybit Pay turns your crypto into a practical tool for everyday payments.

Bybit Pay makes it easier than ever to use your crypto. Whether you're paying online, transferring funds to a friend or scanning a QR code in-store, Bybit Pay supports seamless payments in both crypto and fiat funds.

Bybit Pay simplifies spending both locally and globally.

Bybit Pay operates through two main methods: QR code payments and internal transfers. Users can scan a QR code to pay merchants or friends, or send funds directly using a phone number, email or Bybit UID. It supports both crypto and fiat, with seamless access via the Bybit app or website.

: While the Bybit Card functions like a debit card for in-store purchases, Bybit Pay enables direct wallet-to-wallet transfers and merchant payments, without any need for physical hardware. It’s faster, flexible and perfect for global digital transactions.

How to send crypto and fiat with Bybit Pay

Bybit Pay makes it easy to send crypto or fiat to other users or merchants. You can pay by scanning a QR code, or via internal transfer using a phone number, email or UID.

2. Choose your payment method, and enter the recipient’s email, phone number or Bybit UID.

Enter the amount you wish to send. Tap on the 

 to convert from fiat to crypto, if needed. Add a note (optional), avoiding special characters.

5. Review the details, and confirm your payment after completing two-factor authentication (2FA).

Once your funds are sent, your payment history is viewable at the bottom of the Bybit Pay screen or by tapping on the 

Bybit Pay makes sending crypto as easy as sending a message.

How to receive crypto and fiat on Bybit Pay

Receiving payments on Bybit Pay is simple and flexible. Users can receive crypto or fiat via either internal transfer or QR code, depending upon the sender’s preference.

The sender can use any of these details to transfer funds directly from their Bybit Pay interface.

Bybit Pay makes receiving crypto fast, flexible and borderless. The following is a step-by-step guide for requesting a payment using a personalized QR code — right from the Bybit app.

. This opens your personalized payment interface.

 to enter a fiat amount, and the amount will automatically convert to crypto.

: Your QR code updates in real time in order to reflect the specified details. Simply show it on-screen or use the 

: After the sender has completed the transfer, go to 

 to confirm receipt and track incoming funds.

Bybit Pay bridges crypto and traditional finance, offering seamless, secure and instant payments — all from one place. Whether you're sending or receiving crypto, or spending it globally, it’s never been easier to do. 

 today to experience secure, borderless crypto and fiat payments — right from your app or browser.

Bybit Pay send & receive.png

How to send and receive payment using Bybit Pay

Trading

Pivot points show reliable indication to buy and sell signals & to determine exit points along. But do they work for crypto trading? Learn more.

Pivot-Points-1024x442.png

BTCUSD-1024x545.jpeg

Camarilla-Pivot-1024x568.png

How-to-Draw-Pivot-Points-1024x260.jpeg

Breakout-Trade-1024x553.jpeg

Breakout-Trade-1024x553_(1).jpeg

We've all got to start somewhere, and familiarizing ourselves with different technical analysis types in crypto is no different. One thing is for sure: Novice traders often struggle to find a road map to navigate the crypto markets. Active crypto enthusiasts will often rack up losses, only to realize all they lack is a sense about market direction. Well, pivot points come in handy for deciphering these challenges, mainly for entering and exiting positions. 

Pivot points refer to a technical analysis tool that provides more apparent price levels as the turning point, resistance and supports over different periods. The pivot points are based on the price action of the previous day's trading. 

In technical analysis, pivot points help determine a sensitive point on the price chart, a crossing that might cause a shift in market sentiment. The pivot point is based on the previous high, low and close prices. The method also provides critical levels of support and resistance in the price action surrounding the pivot point. Ultimately, you can easily use the pivot points to find reliable buy and sell signals, and to determine exit points along with adequate 

Typically, traders use pivot points to determine a key level, in order to watch out for a turn in the trend. But additionally, they also provide traders with a set of resistance and support levels. The standard pivot points are made up of one central pivot level, followed by two 

 displayed above and below the central pivot point. 

This technical analysis indicator relies on a previous period’s high, low and close price for a specific period to define future support. While it involves calculations to determine the points. Though this indicator is commonly used in traditional stocks market to determine market trends, it’s certainly applicable in crypto trading. In fact, most 

 that pivot points are one of the most valued indicators for analyzing a price movement precisely. And it's a surprisingly suitable  tool for day traders, too. 

Next, we’ll dive deeper into its technicalities to help you understand what to look for. This includes pivot point levels, calculations, applications, and more.

A typical five-point system involves calculating the primary point first. It's based on the results a trader arrive at for other key resistance and support levels.

It is possible to calculate the Pivot Point for different timeframes like 4-hour- 1-hour or weekly and daily charts. And we’ll take BTCUSD as an example. 

Take a look at Bitcoin, BTCUSD, levels spanning a few days 

. Here, we will determine P, R1, R2, S1, and S2 for each day 

 and continued to trade in a narrow range between S1 and R1 in the next five days. Notice how on the next day, P adjusts itself, reflecting the ongoing price action. Along with it, S1, S2 are also pulled to a higher level. On the third day, the movement loses momentum, S1 and R1 withdraw. The new R1 resists the price action on the fourth day, and 

The pivot point analysis helps the trader in this situation to understand that the move is mature enough for a direction; this is confirmed on the fifth day when the price falls below the previous day’s pivot point. 

, Bitcoin is trading around $34,359, below the P and S1 and challenging S2. A breakdown here is likely to increase bearish momentum.

In technical analysis, we can distinguish five different types of pivot points, namely:

Traders have their preferences among the different types of pivot points. Each type has its unique calculation, especially measuring resistances and supports varying across different PP types. The 

is the most popular among traders, along with 

Moving forward, we’re going to break down the different types of pivot points and how they are calculated.

This variant of the pivot point is commonly referred to as the Classical Pivot or Floor Pivot Points, interchangeably. It remains a favorite for beginners and even advanced traders for a reason. 

The calculation of the baseline Pivot Point (P) involves summing up the high, low, and close prices and dividing the result by 3.

It is also possible to plot additional layers of support and resistance levels like the (R3, R4, S3, S4, and more). What’s great about it is the pivot point indicator is customizable to display several depths of support and resistance lines based on your trading needs.

Camarilla Pivot Point was invented back in the 1980s. The analysis includes using the previous day’s closing price along with high and low prices to compute the P.

A peculiarity of the Camarilla Pivot system is that it plots 

, totaling nine levels, including the Pivot Point. And what stands out from the rest is its presence of special multipliers used in the formula to calculate R1, R2, R3, R4, S1, S2, S3, and S4.

The method with which Camarilla Pivot levels are calculated is below:

Camarilla Pivot’s idea is to follow the principle that markets are cyclical, and over time the price of any cryptocurrency will revert to its average price. At the same time, Camarilla Pivots help crypto traders identify the intensity of the bullish/bearish trend days.

Here is the best way to interpret the Camarilla Pivots:

Tom Denmark introduced this system, and it has a conditional nature for calculating P, R, and S, based on whether the opening price is higher than the close price or not. The value derived based on the condition involving open, close, high, and low is termed ‘X.’

If the closing price is higher than the opening price (i.e., bullish candle), then X = (2 x High) + Low + Close. If the closing price is lower than the opening price (i.e., bearish candle), then X = High + (2 x Low) + Close.

Additionally, if Close = Open, then X = High + Low + (2 x Close)

You might be familiar with the 38.2% and 61.8% Fibonacci retracement levels. But, there is also a PP system incorporating Fibonacci levels. The methods are very similar to those you saw in the Standard Pivot Point system, except for the introduction of Fibonacci level multipliers while calculating the resistance and support. 

P is calculated in the same way as in the Standard Pivot – as an average of high, low, and close. However, for calculating resistance and support, Fibonacci multipliers are introduced as below:

More weightage is given to the recent price action in Woodie’s Pivot Point compared to the Standard Pivot. To calculate the PP and other key levels, the following equations are used:

How Are Pivot Points Different From Other Technical Indicators?

Pivot Point can be a leading indicator, unlike many other common indicators like the moving averages. Instead of relying on the current price action, Pivot Point systems use the previous period price levels to determine critical points. Such an approach provides the traders with a clear framework to plan their trading. The Pivot Point levels are static until the start of the next trading session. Pivot Points’ main advantage is that they provide objective support and resistance levels that are not merely random lines on the crypto chart.

The most popular ways to apply Pivot Points to crypto trading are:

In fast-moving cryptocurrencies, pivot points can provide early signals of the strength and weakness of a trend. But first, here’s how to correctly draw a pivot point. 

Almost all the trading platforms or charting software provide Pivot Point indicators that are usually automated. However, it’s still great to understand the concept and be hands-on with it if there are any doubts. 

To critically assess the crypto market, the pivot point market indicator needs to have these criteria within the chart.

A good note here is to use unique colors to tag each level to avoid overlaps. To start, you can select a monotone color as a PP baseline. Then categorize the R1, R2, and R3 level with another tone to differentiate from the rest. Select another vibrant color to highlight the contrast of S1, S2, and S3. The key here is to make sure these levels are plotted distinctively to help you easily assess the levels within a few glance. 

Pivot Points are widely used in intraday trading. In the BTCUSD chart below, the most effective strategy would have been trying to profit from scalping the bounces off R1 and S1 levels. Through its sheer popularity alone, Pivot Points brings in a fair amount of predictive value. Nevertheless, it is a fact that the levels are calculated based on real market action on the previous day or period and often acts as the right framework to profit from market action.

Typically pivot points act as a leading indicator and forewarn traders about possible turning points. Thus, you can use them as trade entry points, stop-losses, or take-profit levels.

Traders generally expect less than half of the moves to probe beyond R1 or S1, while S3 or R3 are challenged rarely, on an intraday basis. Hence, it is crucial to understand how a market is shaping up while deploying your intraday strategy.

As you have now understood Pivot Points’ basic framework, let’s explore two trading strategies with them: Breakout Trading and Bounce Trading.

Pivot points are also a handy tool that can be used for breakout trading. A move beyond a pivot point can indicate a potential change in the underlying market sentiment, thereby providing us with clear entry points.

If the price breaks above a pivot point level, you can enter into a long trade, preferably using a stop-loss order below the central PP. Such breakouts usually happen in the morning session. On the contrary, if the breakout direction is on the downside, you can go short using a stop-loss order just below the central PP.

In case of a bullish breakout, you can use R1 and then R2 as high probability profit-targets, and in case of a bearish breakout, S1 and S2 are the potential targets.

In case the R4 or S4 pivots are taken out in intraday action, it is better to be positioned in the direction of the move as strong trend days usually emerge from these types of breakouts. Such trend days are rare, not common, but highly profitable if you can catch one at the right time.

A high probability trade setup for intraday is bounce trading. The bounce trading strategy attempts to profit from buying near support with the expectation that the pivot point will hold and sell near resistance, expecting that the price will drop.

The most common way to apply this trading strategy is to join the bounce off from Pivot Point and target S1 or R1 according to the bounce’s direction.

As most of the intraday moves fizzle out before touching S2 or R2, mean reversion trades can be meaningful near those levels.

Pivot Points are best suited for intraday trading, and as you have seen earlier, it is based on a simple calculation, which might not be compatible with swing or position trading.

It is common for prices to disregard pivot levels completely. Hence, there is no guarantee that the price will reverse or make any significant directional move around such predefined points.

Pivot Points’ major deficiency is that when volatility is high, the price fluctuations are too wide to provide meaningful trading signals.

Therefore, many traders use Pivot Points along with and other technical analysis tools as a confluence to smoothen out the drawbacks inherent in this approach to the market. One of the suggested combinations is using PP with Bollinger Bands to develop a better trading style incorporating volatility considerations. It will be prudent to step aside when Bollinger bands indicate high volatility; unless the volatility expansion is in your favor in an already established position.

Key Considerations When Trading With Pivot Points

When trading with Pivot Points, it is essential to be aware of critical levels over multiple periods and not just the latest 

 based on the previous session. Looking at numerous periods will help gain a better perspective and gauge market levels if the price trades beyond R4 or S4.

When prices cross R4 levels, it might be tempting to go short; or go long when price gaps below S4, but it is usually a wrong idea as such price action usually indicates strong trend days and might not be suitable for range trading.

Pivot Points work best in assets that attract high volume price action. Hence, it is better to stick with cryptocurrencies with the highest trading volume; avoid low volume digital currencies.

It is essential to not place your stop-loss orders at easily guessable or noticeable levels – like right at S1 or R1.

Always trade with a position size that translates to a risk level proportional to your overall portfolio size and trading strategy.

If you haven’t defined the maximum risk per trade as a percentage of your overall trading capital, make it a priority to set it first. Once you have decided that, which should be less than 2% of total trading capital, use Pivot R1 or S1 as a target to enter a trade breakout or bouncing off around P. Here, the distance to stop-loss from the entry should be ideally less than half of that from the target price.

Even though you have a higher probability of success while targeting S1 or R1 in a bounce trading from P, it is still vital to make sure that the targeted profit should be substantially higher than the risk taken.

If you are trading long in a bear market, it is prudent to take quick profits while in a bull market. Though, it might be worthwhile to hang on to a winning trade.

Pivot Points are suitable for beginning traders or traders struggling to develop a workable trading plan. Pivot Points are a great tool to build clarity and consistency in your trading.

Suppose you are confused about getting the right entry price or deciding on the right time to exit. In that case, this is a practical approach to tackle the volatility in the cryptocurrency market.

By providing entry, target, and stop-loss, the Pivot Point method takes out the uncertainty in your trading plan. Knowing the risk and reward clearly before placing a trade is half the battle won.

What Are Pivot Points —and How to Crypto Trade with Them

Compete for 2,500 USDT Every Week

Earn Points by Completing Tasks

Event Rules

Weekly Leaderboard