Bitcoin Price Diary: VET, XLM, TRX Double-Digit Gains — BTC Flatlines

Veteran trader secures a 60% profit on VeChain, 8% on Tron, 18% on Stellar Lumens and breaks even on Bitcoin.

Altcoins have continued to boom while Bitcoin (BTC) has effectively traded sideways. I closed the majority of my position in VeChain (VET) for a quick 60% profit and nailed my exit on Stellar Lumens (XLM) almost exactly at the top. I am once again long on Bitcoin from $8,375 and have stopped out in profit from a position on Tron (TRX).

Update on the Bitcoin position

I entered a fresh Bitcoin trade at $8,595 on November 12th. I took this position because I viewed a return to the previous trading range below price as unlikely and because there was a clear area of liquidity as shown by the green box shown below. This made this area a likely place for a bounce. 

 TradingView

BTC USD 4 hour chart. Source: TradingView

Further, the price was showing a clear bullish divergence with the relative strength index on multiple time frames, and this area amounted to a 61.8% retracement, viewed by many as an ideal entry. All of this confluence made me confident in the position.

 TradingView

BTC USD 1 hour chart. Source: TradingView

 TradingView

BTC USD daily chart. Source: TradingView

As the price moved up, I also moved my stop loss to break even. I exited manually today at even (with fees), seeing that price action was weak and assuming a drop was likely. Fortunately, I escaped moments before Bitcoin dropped to the mid $8,300s. After the drop, I filled the first of a number of bids for a new long position on the resistance to support flip pictured below. I am presently back in at $8,375. I will continue to update this trade as it develops.

 TradingView

XBT USD hourly chart. Source: TradingView

TRX/BTC

Entries: .00000184 (sats), .00000210 (sats), .00000221 (sats)

Targets: .00000260 (sats) - .00000286 (sats), .00000304 (sats), .00000473 (sats)

Stop Loss: .00000159 (sats) for a  potential13.5% loss at the first entry. I continued to move the stop up as price rose, ultimately to .00000219 (sats).

Entry Idea:

TRX has been one of the most profitable assets that I have ever traded, as I caught much of the now-famous move from under .00000020 (sats) to .00002000 (sats). I am always looking for entries and became interested again when it dropped below .00000200 (sats) in August. A massive descending channel was clear on the chart, likely to eventually break to the upside.

 TradingView

TRX BTC daily chart. Source: TradingView

TRX price formed a clear inverse head and shoulders pattern, so I took a small position on the breakout and local retest. I gave myself a comfortable stop loss, as the initial position was small so the risk of a larger percentage loss was minimized.

This is one of the benefits of entering a trade at numerous stages. My intention was to add to the position higher as I saw confirmation that a reversal was likely. As this happened, I trailed the stop loss up to below higher support levels. This went perfectly. 

 TradingView

TRX BTC daily chart. Source: TradingView

I added to the position at .00000210 (sats) as illustrated below, and more recently at .00000221 (sats) as clear, fresh resistance levels flipped to support.

 TradingViewTRX BTC daily chart. Source: TradingView

 TradingView

TRX BTC 4 hour chart. Source: TradingView

How it worked out

TRX dropped quickly with Bitcoin today, hitting my stop loss for the entire position at .00000219 (sats). As mentioned earlier, I moved the stop loss up to the next support each time I entered. This amounted to an 8% overall gain on the entire position.

Closing the second XLM/BTC trade

Entry: .00000797 (sats)

Target: 0.00000940 (sats)

Stop loss: .00000781(sats)

Risk / reward: Target 1 = 8.94

Entry Idea

As mentioned in previous entries, this was effectively a second round of the same trade with the first retest of the .00000797 (sats) line on a larger time frame. I love taking long positions on the first major retest of a key resistance to support flip, so I was salivating for the opportunity to play this move.

 TradingView

XLM BTC 4 hour chart. Source: TradingView

Amazingly, the price wicked down to .00000782 (sats). My stop loss was sitting at .00000781 (sats), so I managed to stay in the trade by the thinnest of margins. Luckily, a more generous stop loss was justified, which is something I will consider on future trades. As you can see in the chart below, XLM price quickly made it to the target, piercing it with a wick and filling my asks. The price topped out at .00000942 (sats), only 2 sats above my sell orders. This elicited a quick 18% gain on the trade.

 TradingView

XLM BTC 4 hour chart. Source: TradingView

A 60% Profit on VET/BTC

Entry: .00000050 (sats)

Targets: 0.00000062 (sats), .00000080 (sats), .000000102 (sats)

Stop loss: .00000047 (sats)

Risk / reward: Target 1 = 4, Target 2 = 10, Target 3 = 17.33

Summary

I entered a position in VeChain at .00000050 (sats) after seeing it break both descending and horizontal resistance. The trade is detailed in the most recent journal entry. I had already taken a profit last week at .00000062 (sats) for a 24% gain with half of my position, letting 50% ride for the higher targets. As illustrated in the chart below, the altcoin’s price continued it’s vertical ascent and hit my second target at .00000080 (sats), for a quick gain of 60% on 40% of the position. I have kept 10% of the position open for a shot at the higher targets. At present, the price has reached .00000093 (sats). This was a spectacular trade that went my way quickly and without much risk.

 TradingView

VET BTC daily chart. Source: TradingView

Additional trades:

I remain in my position on Harmony (ONE). I also still hold positions in Dogecoin (DOGE) and Holo (HOT), which I will update when the price action details such an update as relevant.

The views and opinions expressed here are solely those of the (@scottmelker) and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Publication date: 
11/15/2019 - 20:11
Author: 
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.