sakuzi

Hectic 2 Weeks of Trading Bitcoin [Educational]

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
This is an educational technical analysis of the past 10 days based on the trading I have been doing recently from patterns I have been noticing during price movement starting with our outbreak into the $5000+ pricing.

- By creating a trend line it gives us an idea of when an outbreak or a downfall may occur I have done so using swing lows since the dip last month. After we failed to pass 4940, we can create a resistance line, using Volume Profile we can also create a support line based on where volume falls off. To be safe we can also set our stop loss at the swing low (the lowest price on breakout)
- With visible higher lows and higher highs I am able to tell this will be a larger move. We can create a resistance and support based off of this and expect consolidation when momentum slows down.
During this frantic move we have several options.

1. We can take profit at the two short consolidations on the way up where we see the resistance lines.
2. We can add to our position and raise the leverage we are using and expect the liquidation price to move up just a little bit around the entry price.
3. We can prepare a hedge and short if we are feeling bearish about this strong movement while holding our long position.

Before our bounce at around 5125 we can already see that as a potential area for a bounce by creating a support trend line from the bottom of our 3k bounce on 9/15. We can do this by using the low of that candle and finding a correlating candle that has also had a low that matches with the dip we had. Also marks a cross section on the uptrend and downtrend fibonacci channels I had drawn that matched the exact candle open area. We also see what can be basically noted as a inverted head and shoulders or V bottom. Setting our swing low on the right shoulder as a stop loss and buying the breakout to minimize risk, and maximize profits

We are now in a consolidation marked with the rectangle , we can break out down which we would potentially want to short or bounce off and go higher creating an opportunity to open long. If we break below we can look at the fibonnaci retracements as potential areas for bouncing but should also pay attention to volume profile for indication of which price we may meet resistance or supports at.

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I have made 1600% just this week trading Bitcoin Futures (Quarterlies & Perpetuals) from trading this what I have shown on this chart. It would have been higher but I accidentally closed 2 trades from my long position on the recent bounce. Feel free to checkout BitMex in my signature for trading Bitcoin Futures and joining my community for Public Help. All feedback is welcome.
Comment: We seem to have bounced off the rectangle support and should now watch for an outbreak on the resistance unless we fall back to the support.
Trade active:
Bought the bounce on the rectangle and woke up to the breakout upwards.
We may be close and ready to break 6k, we would want a higher support and will need to break through the current resistance.
Trade active: Pennant formed will be trading the outbreak with a close out soon.

Comments

Good job jacuzi now get more badges and keep going then we will go on a year long bender
Reply
Thanks. I've seen the BitMex and I don't understand the last sentence of this "If the price had in fact dropped to 500 USD, the trader’s loss would have been: 60,000 * 1 * (1/600 - 1/500) = -20 XBT. The loss is greater because of the inverse and non-linear nature of the contract. Conversely, if the trader was short then the trader’s profit would be greater if the price moved down than the loss if it moved up.". Profit when price moves down?
Reply
sakuzi synolog
@synolog, Yes with Futures on BitMex you have the ability to Short also known as "Betting Against" the price of what you are trading or to Long "Bet for growth". What this means is that if you think that the price will go down in the short term you can open what we call a "Short" and earn more Bitcoin or whatever you are shorting. Now with Bitmex I highly suggest only trading Bitcoin because the liquidity of other assets is terrible meaning although you may profit at time it comes to take profit it may be hard to find buyers.
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