Buying and selling altcoins continues to be probably the most worthwhile methods within the crypto market. The highlight of this week was the MATIC (MATIC) pump and subsequent dump, which I used to be fortunate sufficient to time completely, securing a 60% revenue close to the all-time excessive. I closed quite a few positions in revenue, and am nonetheless buying and selling EtherParty (FUEL), (IOST), Elrond (ERD), Chainlink (LINK), Zilliqa (ZIL), Verge (XVG) and FunFair (FUN).
I didn’t take income on a few of these cash on the first resistance and goal, solely to see them retrace to my entry and this presents an necessary lesson about being too grasping. Every setup seemed good, however the MATIC movement spooked the market and triggered a ripple impact that noticed short-term worth depreciation throughout the board. Lesson realized.
BTC/USD replace
Bitcoin (BTC) has been chopping sideways with errant wicks each up and down all through the previous week, possible liquidating excessive leverage merchants on each side. I’m presently lengthy Bitcoin from $7,100 after taking two different positions that closed even or in a slight revenue this week.
BTC USD hourly chart. Supply: TradingView
The primary sign that sparked my curiosity in an extended place was a transparent bullish divergence with the Relative Energy Index (RSI) on the hourly chart. I usually don’t commerce decrease time frames, however I observed that there have been potential divergences displaying on bigger time frames, so I zoomed in. Usually we’ll see an hourly bull divergence affirm on the 4-hour, 6-hour and every day timeframes.
BTC USD 4-hour chart. Supply: TradingView
I made a decision to enter a place at $7,100 when the value dropped right down to the earlier swing low at $7,080 after which bounced. This seemed prone to affirm as a bullish swing failure sample (SFP). On the most elementary stage, when worth wicks barely under a earlier swing low, it’s a sign that liquidity has been engineered by a whale.
On this case, it appeared possible that they pushed worth right down to compel retailer merchants to take shorts, and likewise to fireside present cease losses on lengthy positions – thus making a ton of promote orders to purchase into. The value has at the moment risen from that time.
BTC USD 4-hour chart. Supply: TradingView
Moreover, the value is displaying a possible bullish divergence with the RSI on the every day chart, which might be a possible sign of a backside. I’m awaiting affirmation, as this could make me really feel far safer in my present place.
FUN/BTC
Commerce thought
FUN supplied a really clear buying and selling alternative this week. I pulled up the chart after not it for nearly two months and located that worth had continued touring in a channel that I drew in October close to the native highs.
FUN BTC every day chart. Supply: TradingView
The best entry would have been a bounce off of the channel backside, between .00000033 (sats) and .00000038 (sats). Nonetheless, a transparent resistance fashioned at .00000044 (sats), which flipped to assist and was my entry, as proven under.
The way it labored out
The value moved up in a short time, topping out at .00000060 (sats). I exited half of my place at .00000056 (sats), for a fast revenue of 27%. The remainder of the place continues to be open and my goal is on the high of the channel.
IOST/BTC
Commerce thought
It is a comparatively simple commerce. The value was forming a pennant at assist (not proven) earlier than the Binance shakeup. The MATIC transfer triggered the value to drop by way of assist at .00000080 (sats). I used to be looking forward to a bounce off of the blue ascending assist however noticed worth rapidly drop by way of and entered at .00000071 (sats) simply above the horizontal assist line.
IOST BTC every day chart. Supply: TradingView
I need little to do with IOST under that line, or under the .00000070 (sats) assist and I’ve set my cease loss at .00000067 (sats) as a result of this could permit for a wick under that .00000070 (sats) assist and shut again above.
The way it labored out
IOST BTC 4-hour chart. Supply: TradingView
This commerce is at the moment nonetheless open and beginning to transfer as anticipated. After my entry, the value continued to check the .00000070 (sats) assist, dropping under by 1 sat however by no means reaching my cease loss. The value then fashioned a descending wedge, the place it’s at the moment breaking apart from. Preliminary targets are proven as black horizontal strains.
The views and opinions expressed listed here are solely these of the (@scottmelker) and don’t essentially replicate the views of Cointelegraph. Each funding and buying and selling transfer includes threat. It’s best to conduct your personal analysis when making a call.
