Altcoins have been inching their way deeper into my trading routine and this seventh entry of the crypto trading journal features a newly opened position on VeChain (VET), as well as a timely buy of Stellar Lumens (XLM). I am still long on Bitcoin (BTC) from under $9,000, as price moves sideways.

XLM/BTC

Part 1: Setting up the trade

Entries: .00000800 satoshis (sats), .00000870(sats), .00000797 (sats)

Targets: 0.00000940 (sats), .00001044 (sats)

Stop loss: The first stop loss was set at .00000781 (sats) on the breakout. As usual, I move this up to follow the price when required.

Risk / reward: Target 1 = 7.37, Target 2 = 12.84

Entry Idea

A member of the TexasWest Capital Discord asked me to chart XLM a few days before, and I identified the .00000797 (sats) area as a place that I would consider buying. In a surprise announcement, the Stellar Lumens team decided to burn 50% of the coin supply, causing a large and fast upside move, which caused my alarms at .00000797 (sats) to go off. 

My preferred strategy is to buy the retest of a key resistance as support rather than just buying the breakout. As can be seen in the second chart below, XLM price came back and tested support, which is where I entered.

I set my buy orders at .00000800 (sats) instead of .00000797 (sats), just in case that line was front-run. This is a 15-minute chart, a time frame I rarely utilize. However, in a move this large and fast based on news, the price was unlikely to retest over a longer period of time, so I was willing to trade this smaller time frame.

I rarely FOMO into positions, but I saw the 50% burn as a legitimate catalyst and expected the price to potentially pull off an absolutely massive pump. When the fundamentals line up with the chart, you generally have to move very quickly to catch it.

XLM BTC daily chart

XLM BTC daily chart. Source: TradingView

 

XLM BTC 15 minute chart

XLM BTC 15 minute chart. Source: TradingView

 

I immediately set my take profit for half of my position at .00000940 (sats), an area I saw as a key resistance. Within an hour, the price hit this line and dropped, which was ultimately the top of the move. In an effort to catch a second pump, I reentered at .00000870 (sats) but ultimately stopped out of this trade with the entire position at that same line when the price dropped.

How it worked out

I made 17.5% on half of this position in less than an hour, a very successful trade in my mind. The remainder closed at .00000870 (sats) for a profit of 8.75%

Part 2: Setting up another XLM trade

Entry: .00000797(sats)

Targets: 0.00000940 (sats), .00001044 (sats)

Stop loss: .00000781(sats) on the breakout.

Risk / reward: Target 1 = 8.94, Target 2 = 15.5

Entry Idea

This is effectively a second round of the same trade, with the first retest of the .00000797 (sats) line on a larger time frame. The FOMO has passed, so this key support is a likely place for a bounce if the price is going to continue up longer term. I will continue to update this trade in future journals.

XLM BTC 4-hour chart

XLM BTC 4-hour chart. Source: TradingView

 

VET/BTC

Entry: .00000050 (sats)

Targets: 0.00000062 (sats), .00000080 (sats), .000000102 (sats)

Stop loss: .00000781 (sats) on the breakout.

Risk / reward: Target 1 = 8.94, Target 2 = 15.5

Entry Idea

VET has historically been one of my favorite assets to trade, so I have been watching it for months. I identified .00000050 (sats) as the key area that, if broken, would signal that price was likely to continue up. Other areas of likely resistance (targets) are shown on the weekly chart below. I also drew a descending resistance, which price broke clearly on the weekly chart. 

VET BTC weekly chart

VET BTC weekly chart. Source: TradingView

 

Like the XLM trade above, I waited for a retest of resistance as support to enter. I entered at .00000050 (sats) based on this retest on the 4-hour chart.

VET BTC 4-hour chart.

VET BTC 4-hour chart. Source: TradingVie

How it worked out

I have already taken profit on half of the position at .00000062 (sats), my first target, a 24% gain. The rest of the position remains open, waiting for a chance to hit higher targets. I will keep this trade open for as long as Bitcoin remains stable.

BTC/USD update

I stopped out of my two-week-long Bitcoin trade at a small loss this morning when the range lows were broken. I had plenty of opportunities to take some profit, so this was a poorly managed trade in my mind. In retrospect, I should have exited when the price was clearly rejected at the equilibrium of the trading range (dashed line). The details of the trade were described in the previous analysis. This amounted to a 1.2% loss on the position and a negligible portfolio loss.

BTC USD 4-hour chart

BTC USD 4-hour chart. Source: TradingView

 

Additional trades:

ONE BTC daily chart

ONE BTC daily chart. Source: TradingView

 

I have also entered a position on Harmony (ONE), with the basic setup shown below. I will update this in the next journal. 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.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

BTC/USD bulls fight for every inch of the ground on their way to $10,000

After a sharp sell-off at the beginning of the week, BTC/USD climbed back above $9,000 and made its way above another important resistance $9,300. A shall green candle on a weekly chart is a promising signal, though the market is still gripped with uncertainty at this stage. 

More Bitcoin News

XRP/USD drops below $0.2000 after a failure at $0.2030

XRP/USD tested the intraday high at $0.2031, but the strong resistance located around this area discouraged the short-term bulls and pushed XRP/USD below $0.2000 by press time.

More Ripple News

ETH/USD breaks out into the $220 zone, will it be $230 or $210 next?

Ethereum price followed in the footsteps of the largest cryptocurrency by market capitalization, Bitcoin. BTC sprung upwards and for the first time in seven days, stepped above $9,600.

More Ethereum News

EOS/USD slumps below 4-hour SMA200, focus on $2.54

EOS/USD attempted a recovery above 4-hour SMA200 (currently at $2.65) and touched the intraday high at $2.67. However, the upside momentum proved unsustainable as the price of the digital asset dropped to $2.62

More EOS News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: BTC/USD bulls fight for every inch of the ground on their way to $10,000

After a sharp sell-off at the beginning of the week, BTC/USD climbed back above $9,000 and made its way above another important resistance $9,300.

Read the weekly forecast

BTC

ETH

XRP