The Wolf Den #71 - Trades
Bitcoin Dominance
Dominance just made a lower low locally. It seems to have retested former support, both horizontal and ascending, as resistance... and failed. If this continues down, which it "should," alts should shine.
Altcoin Trades
CHZ/BTC
I am still in this from above and have added a bit at 123. There's potential bullish divergence on the 4 hour with oversold RSI, which is a setup that I love. That said, the candle has not closed to confirm that divergence - we want to see a definitive elbow up on RSI to confirm at the next close. The safest entry here is to see 123 hold as support and to see the descending line broken. Right now is early, so confirmation that this down move is over comes on that breakout. So this is just a setup - not a trade... yet. It becomes a trade if or when it breaks that line. The target would be top of that descending line at 164 or so.
EOS/BTC
This trade never triggered last time, because no candles closed above the descending line. That's good - it gave me a better entry on the break this time! Fingers crossed that this continues up, but it's very clear that the downtrend is broken. Volume is rising today. If you choose to trade this, I would place a stop below the previous low, with a few percent in case it makes an SFP. Fibs and lines are targets.
LTC/BTC
When BTC dropped, it took LTC with it, which was unfortunate as the setup looked great. That said, the setup was never invalidated, as candles continued to test the descending line as support and hold. In doing so, price made a bullish SFP below the previous swing lows, which is a big deal on high time frames like this. Really encouraging. Price is finally moving away from the descending line and slowly starting to rise. If you choose to trade this, I would place a stop somewhere below the recent swing low. We want to see some volume come in when this is rising to confirm a new bullish trend, but the down trend is officially broken. Fibs and lines are targets.
As always, use good risk management. I always plan to lose, and I like this setup because a loss would be small.
PNT/BTC
Nothing has changed, just a reminder that I am still watching this. It only triggers if the top resistance is broken. At that point, the recent high is the first target. Everything above that is speculation in price discovery. This is NOT A TRADE yet.
POLY/BTC
Like CHZ, this has a potential bullish divergence with oversold RSI that is likely to confirm on this candle close... but is not there yet. This is also at a key support, 410. If that holds with bullish divergence, it would be a very good sign that this has potentially bottomed. Breaking either of the descending white lines would offer safer entries. We also want to see candles closing above 410, as it is technically resistance at the moment. So... for me, if this closes the next candle above 410 with bullish divergence, I will enter. Stop loss just below 400, in case of anything unexpected. Very small loss if it goes wrong.
My Recommended Platforms And Tools
Voyager
This is where I invest, commission-free. They now let you earn interest on your Bitcoin held in Voyager, so you can compound while trading. Not only that, you’ll get $25 in free BTC when you download & fund.
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Phemex
This is where I trade with leverage and can also trade spot with no fees.
RoundlyX
I use RoundlyX to buy small amounts of Bitcoin every single day. They automatically round up my credit card purchases (with 10x multiplier) and invest them in crypto. Absolutely brilliant. Passively invest money you don’t need without a thought. Further, they have integrated with Voyager (see above) to offer commission-free purchases.
Rewards Code: WOLF
TexasWest Capital
This is where I spend my days teaching and learning! Our Discord group is a one stop shop for everything you need to learn to trade and control your emotions. Feel free to DM me on Twitter or respond to this email for questions.
Choice IRA by Kingdom Trust
Self-Directed IRA for Americans - allows you to invest in Bitcoin and any other asset for your retirement, with all of the tax benefits of a normal IRA.
Efani
Concierge Phone Service for Americans that protects your from SIM Swaps and other phone related hacks. I cannot stress enough how amazing this service is.
A new crypto rewards debit card that I have been testing and loving. I use both the virtual card online and the physical black card at actual retail (I will do this more after COVID!). They offer 6.38% cash back in crypto, which is really astounding.
BlockFi
BlockFI is where I personally store part of my long holdings. They offer up to 8.6% annually, compounding, depending on the asset (BTC, ETH or GUSD), which is much better than any legacy savings account or investment.
Follow me on Twitter at @scottmelker. This is where I am constantly updating my trades and sharing ideas.
The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor.