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.


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



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

Bitcoin price prediction: November fails to impress, what about an action-filled December 2019?

Bitcoin is staring into a bottomless pit mid though the month of November. The past two years have seen Bitcoin start to stir movement upwards in November.

More Bitcoin News

The cryptocurrency market update: Bitcoin and major altcoins recover from early losses

The cryptocurrency market is navigating a sea of red on Friday. Bitcoin and all major altcoins are nursing losses both on a day-to-day basis and since the beginning of the day.

More Cryptocurrencies News

XRP/USD on the verge of a falling wedge pattern breakout

Ripple is trading below a key support week-long support at $0.27. The selling pressure on Thursday forced the price lower refreshing the levels towards $0.26. XRP commenced the trading on Friday at $0.2679 and touched a high of $0.2690.

More Ripple News

Litecoin price update: LTC/USD takes back $60 support, is $65 hurdle breakable?

Litecoin is in the middle of a recovery move following the recent slide below $60. The accrued gains chopping exercise that has been going on since the week started after another failed attempt to correct towards $65.

More Litecoin News


Bitcoin Weekly Forecast: In the middle of nowhere

Bitcoin has been drifting down since the beginning of the week, as the bulls have no luck with the recovery campaign launched during the previous weekend.

Read the weekly forecast