Welcome to this weekly series from the TradeRoom. My name is Dave and I’m the founder of The Crypto Den, an Australian-based crypto trading and education community aiming to give you the knowledge to take your trading game to the next level.
Crypto Market Outlook
As I mentioned in last weeks article we are in protecting our capital mode! This is because this past week has only been a good week for those trading in the futures markets and shorting – and I don’t think its over yet.
If we take a look at the Bitcoin CME Futures chart (BTC1!) you’ll see 2 very distinct gaps in price action displayed by the green boxes. Now generally speaking these gaps get “filled” (meaning price revisits those levels) 80% of the time. The further PA gets away from these gaps the less likely they will be filled. Now that being said we are very much in range of these gaps getting filled which would mean the BTC price could very likely revisit US$32,000 and US$23,000. Its my opinion IF this does happen BTC will test the previous top of the last bull cycle at US$20,000.
Comparing this weeks BTC chart to last weeks you can see the target identified of US$30,000 has not yet been hit and still very much in play. This will correlate well to the BTC1! gap closing.
We could see a very short lived relief rally but once again these are very short term rallies. My money is still hedged on a further downside.
Last Week’s Performance
We had a great primary target for a LUNA short which unfortunately was missed so we hit the secondary target at a retest. This was still a profitable 330% trade on only 10x leverage.
Once of the biggest trades from last week was on NEAR short closing in a whopping 400% on only 10x leverage. We correctly identified the bearish engulfing candle after some indecision and entered. This one well and truly exceeded our expectations thanks to BTC!
Easily my favourite trade of the week was on BABYDOGE. On a fundamental level I have absolutely no idea what this coin even is or does and it sound ridiculous but nevertheless the opportunity was there and we took it!
This short trade was identified in a TradeRoom live market scan and profits were taken at just under 500%. I still have some capital in this trade and have added to my position in the current relief rally. Will see how it plays out soon enough!
This Week’s Trades
As mentioned above I’ve added to my BABYDOGE short position here which could be opportunity for a new trade entry. If this plays out it could prove to be another 500% on only 10x leverage.
What we look for in a bearish market is the biggest relief rallies to present the better short entries. I think ATOM has painted a good push back to test previous support as resistance and therefore presenting great shorting opportunity here.
When BTC has large dumps like this the volatility is increased for both up and down swings making it far less predictable than in a stable market. Because of this, we generally think it is wise to reduce capital input during times of uncertainty.
Learn to Trade
Unfortunately, due to COVID, we have had to postpone the start date for our up coming trading course. The next live trading course for newcomers will be on 28th Feb, see full details below.
The Crypto Den is holding its first of only two trading courses for 2022 on February 28! That’s right, we will only be running two programs in 2022! What makes us different? Our lessons are LIVE and come with a community where you submit your homework and receive feedback to ensure you understand what we teach!
Duration: 6 week course
Date/Time: Live trading course twice a week – Mon & Wed at 7pm AEST
Frequency: We now run our LIVE course only twice per year
Location: Zoom Webinar
From: February 28 to April 13
The Crypto Den’s Trading Fundamentals trading course is a LIVE interactive course designed to teach you how to trade the crypto markets from absolute beginner level!
Our six-week program teaches you how to set up your trade accounts using reputable exchanges and brokers, how to read the charts using technical analysis, and to protect your capital using effective risk management strategies.
We have taught thousands of students of the past five years how to trade these volatile and highly profitable markets. See our REAL reviews from REAL students.
Using ZOOM twice a week, all of our lessons are LIVE and recorded so you can access them over and over again in our structured course through our website and smartphone app. Lessons come with homework and online quizzes, as well as an amazing online and private community of students.
So what are you waiting for? Join now to start learning!
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The Crypto Den was created in 2017 to help the rapidly growing crypto community learn and understand the fundamentals of digital currencies and how to trade them.
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The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.