Bitcoin Price Diary How REN/BTC Double Bottom Made Me 49 Profit

On this 3rd installment of my Bitcoin Worth Diary, I’ll revisit some open positions which might be nonetheless in play and overview a large business on REN. I actually have a place in Bitcoin (BTC) this is nonetheless in large part open. 

As I’ve stated quite a few instances on Twitter, I consider that it’s been an altcoin season for months and that altcoins discovered their native bottoms in August. I’ve been very easily buying and selling them since. In early October, Bitcoin dropped and used to be ranging sideways, giving altcoins much more room to realize. 

On the time of writing, Bitcoin value is a couple of days got rid of from a large 6.6% transfer up, which led to a drop around the board on many altcoins. I’m continuing with warning on altcoins for the instant till Bitcoin has equipped clearer route for its subsequent transfer. 

I wish to stay my lively trades at a minimal as it is helping me organize my threat. Opening a couple of altcoin positions on the similar time hardly ever works for me as they transfer in tandem in keeping with Bitcoin value strikes. 

Because of this I assign a 1% threat for a couple of positions as failing to try this can result in sizable loss around the board. I choose to spot the 1 or 2 setups I really like the most efficient and allocate extra budget to heavier positions. On this case, I deployed the majority of my buying and selling capital right into a REN place, which labored out superbly.

Let’s check out some charts to peer how the method labored out. 

REN/BTC: Putting in the business

Entries: .00000512 (sats), .00000601 (sats)

Objectives: The objective of the preliminary breakout, for me, is a shuttle to the all time prime. That is bold, however my first goal for a small portion of the business used to be set at .00001396 (sats). This might be a 170% achieve.

On the time of access, I used to be staring at for a possible double backside (showed with a destroy of .00000601), with a goal round .00000840. This might be a 64% achieve from the primary access and a 40% achieve from the second one access. 

Prevent loss: In case the business is going stomach up I’ve positioned a quit loss at .00000476 (sats), which equates to a 7% loss at the business. 

Calculating the risk-reward ratio

It’s additionally just right follow to believe the chance to present ratio when investing, particularly with altcoins given Bitcoin’s present dominance fee. 

The chance to present ratio measures the variation between a business’s access level all of the option to the stop-loss and promote or take-profit order. 

Evaluating those two supplies the ratio of cash in to loss, or present to threat. For this business, it’s kind of 26 (!!!)  on the first goal and nine.6 at the second one goal.

Normal research

REN has been in a transparent and sustained downtrend since hitting its all-time prime in July. I caught most of the move up and used to be in a position to learn, exiting close to the highest. I had very no interest in buying and selling it once more, and persistently posted on twitter why I considered extra drawback as most likely.

As in the past discussed on twitter I consider the down transfer began with a head and shoulders and daily bear div

Price ultimately fell well below this area into the .00000360 zone.REN/BTC 4-hour chart

Worth in the long run fell smartly underneath this space into the .00000360 zone.REN/BTC Four-hour chart. Supply: TradingView

I obviously centered the low zero.000005 space, as can also be noticed through my constant posting concerning the green weekly demand zone on my previous charts.

REN/BTC daily chart

REN/BTC day-to-day chart. Supply: TradingView

Access concepts

The white descending line at the day-to-day chart used to be my primary space of pastime for an access. I considered this as a transparent destroy of the sustained downtrend. REN/BTC value broke thru this line on Oct. five, the place I entered my first business at the breakout at .00000512 sats. 

REN/BTC daily chart

REN/BTC day-to-day chart. Supply: TradingView

Prior to now, REN value bounced out of a robust call for space (noticed at the chart underneath) at the day-to-day chart, shaped above the all time low of .00000309 on Binance. 

The transfer up from there stuck my consideration, and can be considered as a possible access for investors with the next threat profile. I used to be nonetheless now not fascinated by buying and selling the coin with out affirmation of a reversal to the upside — a destroy of the descending line. 

REN/BTC daily chart

REN/BTC day-to-day chart. Supply: TradingView

Worth additionally shaped a possible double backside at .00000388 sats, which gave me any other space of pastime for an access. 

A double backside is showed when the neckline (the easiest swing level between the 2 bottoms) is damaged. I really like buying and selling a retest of this line, so I added to my place at .00000601 sats. 

REN/BTC daily chart

REN/BTC day-to-day chart. Supply: TradingView

REN/BTC daily chart

REN/BTC day-to-day chart. Supply: TradingView

The way it labored out

I exited early on 75% of the location at .00000764 sats, for a cash in of 49% at the first access and 27% on the second one access. 

Why did I go out early? There are a couple of causes. 

Bitcoin made a large transfer to the upside, inflicting a drop in maximum altcoins. I consider there may be extra upside sooner or later in retailer for Bitcoin, so this is able to reason additional value depreciation in REN/BTC. 

Extra importantly, I known a transparent bearish divergence at the Relative Energy Index (RSI) at the Four-hour chart, with RSI overbought. A majority of the time, this alerts a neighborhood best, if now not an finish to all the transfer up. 

REN/BTC daily chart

REN/BTC day-to-day chart. Supply: TradingView

I’ve moved up the quit loss on the remainder of my place to only underneath the purple line at .00000684 sats. There’s a attainable hidden bullish divergence forming, which might be invalidated at that time. Additional, that line is a transparent space of enhance that bulls wish to see hang. 

REN/BTC 4 hour chart

REN/BTC Four hour chart. Supply: TradingView


I took a swing place in Bitcoin, i.e. BTC/USD (XBT/USD) on Sept. 26 at $7,914, re-entering the market with a large chunk of the fiat that I had on the sideline. The idea for the business used to be that I noticed a pleasant Four-hour candle with a big wick down, which made a transparent descending channel. 

This candle used to be shaping as much as be a pleasant reversal. Blended with the descending channel and the numerous bullish divergence with the RSI, I used to be assured that value would upward thrust. The RSI used to be traditionally low at the first drop, hitting Four.38. A soar used to be slightly inevitable. 

XBT/USD 4 hour chart

XBT/USD Four hour chart. Supply: TradingView

Bitcoin value made a transfer above the equilibrium (dashed centerline) of that channel, and broke out, bullishly retesting resistance as enhance. 

XBT/USD 4 hour chart

XBT/USD Four hour chart. Supply: TradingView

Even if value dropped another time, I didn’t go out the business, as a result of I noticed any other bullish divergence with RSI forming at the day-to-day chart. 

BTC/USD daily chart

BTC/USD day-to-day chart. Supply: TradingView

This ended in the massive transfer up from round $7,700 to over $eight,500. I exited 50% of the business at $eight,625, and am nonetheless keeping the rest of the location as value showed a triple backside at the Four-hour chart when it broke $eight,535 — the swing prime between the 3 bottoms. It effectively retested this space, so additional value appreciation is most likely. I can stay you up to date!

BTC/USD 4 hour chart

BTC/USD Four hour chart. Supply: TradingView

The perspectives and evaluations expressed listed below are only the ones of the (@scottmelker) and don’t essentially replicate the perspectives of Cointelegraph. Each and every funding and buying and selling transfer comes to threat. You will have to habits your individual analysis when you decide.

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