Long BTC From $6.5K and Back in Altcoin Positions

It has been a profitable week, largely because I caught the big Bitcoin (BTC) move up from the local bottom. I closed a majority of my altcoin trades, some on tight stops and others at a decent profit.

Overall, I’m very happy with the results, although as I mentioned last week, I failed to take profit on certain alt trades when I had the chance and ended up with smaller gains or exiting near even. I have recently opened new positions again in FunFair (FUN) and EtherParty (FUEL) while closing the majority of my IOST (IOST) position for a 12% gain.

BTC/USD

I was long Bitcoin from $7,100, as discussed in my previous journal. When price moved up, I raised my stop-loss, which eventually hit at $7,060 — I was very happy to stop out at a small loss when I saw the price drop to the mid $6,000s. I was eyeing the $6,500 area for another long for days and opened a position when price arrived there, with an average entry of $6,550.

BTC USD daily chart. Source: TradingView

Bitcoin price was showing potential bullish divergences on every time frame below the weekly with oversold conditions on the Relative Strength Index (RSI) on the daily time frame and on shorter timeframes.

There were also potential Swing Failure Patterns (SFP) below the two previous swing lows (blue lines). This is a good indication that liquidity was engineered below these lines — likely an area where a number of people had their stop-losses set or had limit orders to go short.

This is also known as a “stop hunt.” When someone is looking to fill a large number of bids, they need to find those areas where there are likely a lot of sitting orders.

BTC USD daily chart

BTC USD daily chart. Source: TradingView

As shown on the daily chart above, I had planned this idea a few weeks back (the top part didn’t quite happen). As mentioned before, my plan was always to go long if we got to the bottom line at $6,524. Volume had decreased on each pushdown, which can signal weakness for bears. If the price is going down on…

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