It has been a worthwhile week, largely as a result of I caught the massive Bitcoin (BTC) transfer up from the native backside. I closed a majority of my altcoin trades, some on tight stops and others at an honest revenue.
Total, I’m very proud of the outcomes, though as I discussed final week, I did not take revenue on sure alt trades once I had the prospect and ended up with smaller beneficial properties or exiting close to even. I’ve not too long ago opened new positions once more in FunFair (FUN) and EtherParty (FUEL) whereas closing the vast majority of my IOST (IOST) place for a 12% acquire.
BTC/USD
I used to be lengthy Bitcoin from $7,100, as mentioned in my previous journal. When value moved up, I raised my stop-loss, which finally hit at $7,060 — I used to be very glad to cease out at a small loss once I noticed the value drop to the mid $6,000s. I used to be eyeing the $6,500 space for one more lengthy for days and opened a place when value arrived there, with a mean entry of $6,550.
BTC USD day by day chart. Supply: TradingView
Bitcoin value was exhibiting potential bullish divergences on each time-frame beneath the weekly with oversold circumstances on the Relative Power Index (RSI) on the day by day time-frame and on shorter timeframes.
There have been additionally potential Swing Failure Patterns (SFP) beneath the 2 earlier swing lows (blue strains). This can be a good indication that liquidity was engineered beneath these strains — seemingly an space the place various individuals had their stop-losses set or had restrict orders to go brief.
That is often known as a “stop hunt.” When somebody is trying to fill numerous bids, they should discover these areas the place there are seemingly a number of sitting orders.
BTC USD day by day chart. Supply: TradingView
As proven on the day by day chart above, I had deliberate this concept a number of weeks again (the highest half did not fairly occur). As talked about earlier than, my plan was at all times to go lengthy if we acquired to the underside line at $6,524. Quantity had decreased on every pushdown, which might sign weak point for bears. If the value goes down on diminished quantity, it’s usually an indication of a looming reversal.
BTC USD weekly chart. Supply: TradingView
The weekly chart confirmed the large descending channel (debatable bull flag) nonetheless intact, with a pleasant bounce off of the underside. This coincided with a contact of the 70.5 retracement, often called the optimum commerce entry (OTE) for institutional merchants, and likewise amounted to cost dropping beneath the famed “golden pocket” across the 61.8% retracement. For me, all of this was sufficient confluence to enter an extended place.
Most significantly, on the time, the Crypto Concern and Greed index confirmed “excessive worry” and sentiment was exceptionally bearish.
How did it work out?
Bitcoin value pumped rapidly, topping out simply above $7,400 on most exchanges. I used to be in a position to exit the vast majority of my place at $7,250 for a acquire of 10.6%.
I’ve raised my stops on the rest of my place to beneath the inexperienced zone pictured beneath and I’ll proceed to lift them as a guide trailing cease if the value continues to rise. In the end, I consider that is one other nice lengthy throughout a downtrend.
BTC USD 4-hour chart. Supply: TradingView
FUN/BTC
FUN BTC day by day chart. Supply: TradingView
I’ve as soon as once more taken a place in FunFair (FUN) at 0.00000044 (sats), which is a repeat of final week’s worthwhile commerce. The worth held the important thing assist line and continues to maneuver inside an ascending channel.
All these setups are amongst my favorites as a result of I can justify elevating my stop-loss with the channel as value goes my method. My stop-losses are set beneath the blue channel.
FUEL/BTC
FUEL BTC day by day chart. Supply: TradingView
I ended out of Etherparty (FUEL) even final week however was searching for one other potential entry on a bounce off of the blue assist line. That occurred and I used to be in a position to take a place at 0.00000038 (sats).
That is an exceptionally easy commerce. The stop-loss is proven in crimson at 0.00000034 sats. I’ll transfer this up with the value because the assist is ascending. My preliminary goal is the black line on the chart at 0.00000063 (sats).
The views and opinions expressed listed below 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 individual analysis when making a call.
