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.
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.
BTC USD 1 hour chart. Source: 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.
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.
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.
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.
TRX BTC daily chart. Source: 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.
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.
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.
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.