The sixth installment of my trade journal features one of my best Bitcoin (BTC) swing trades ever, catching much of the 40% move that caught many traders off guard.
This was a straightforward trade for me, filling bids in an area that I was expecting to be near the potential bottom. The entire trade is immortalized in a twitter thread. After closing this trade, I opened a new one on the retrace, which is still active.
BTC/USD
Setting up the trade
Entries: $7,390, $7,450 ($7,420 average entry)
Targets: $7,712, $8,535, $10,000
Stop loss: I set the stop loss at $7,240, below the 61.8% fib and recent swing low. This would result in a 2.4% loss on the position and a 1% portfolio loss.
Risk / reward: Target 1 = 1.62, Target 2 = 6.19 Target 3 = 14.33
Part 1: Catching Bitcoin’s biggest pump since 2011
As discussed in my previous journal, after a significant break down from the bear flag on Oct. 23, Bitcoin price approached a buy order that I had set in June 2019. There was no rational reason for me to remove this order as doing so would be an emotional decision based on the recent drop. I filled my bids at $7,390 in the highlighted zone below.
This also amounted to an almost perfect 61.8% retrace of the entire move from the $3,100 bottom to the $13,800 top, considered by many to be an ideal entry.