Trading Bitcoin 003
Hello degens!
It’s been one helluva week for bitcoin, the markets, and me! Regarding bitcoin she’s been up and down with a peak of about $40,800 and a bottom of $37,600. That establishes a nice trading zone of more than $3k which is definitely more than you need to put on some really nice trades.
In fact, I was able to pull out a few myself like here and here. And, to be honest, I got stopped out way too early on these and I need to learn to let things ride a bit more and be less anxious about profits. I am forever a student of the market and the mechanics of trading and so I’ll continue to refine my approach as I mature as a trader. In the long-run it means that both my win-rate and the size of the prize should increase in tandem. Good times ahead for those that don’t quit.
And if you were able to spot trade your bitcoin at the local top / bottom you would have been able to see a 8-10% increase in your satoshi count, respectively. DCA is easy but if you spend a bit more time studying markets your stack could see accelerated growth.
Just sayin’.
The markets got annihilated and unless you were living under a rock you know that JPOW and the Fed are watching very closely as to what they should do and how they should respond the growing issue of inflation and how it impacts housing, credit, and risk-on / off assets like bitcoin. With the DXY on an absolute parabolic run we simply won’t see higher prices of bitcoin until the dollar decreases in relative value. If she hits resistance and fades then it’s time to long BTC.
Note: Although I track the markets consistently I only use that data to create context, never to actually trade as I base all of my trades on bitcoin-centric fundamentals and TA because correlation is not the same thing as causation and, depending on trading time-frame, the price action may have already played out (or been “priced-in”) and you’ll end up getting stuck on the wrong side of a market maker’s liquidity run.
Finally, I’ve been busy getting ready to go more public with this newsletter and spent most of the week learning how to operate a community Discord Server which wasn’t part of my skillset but now very much is!
It took a bit of time but I’m feeling very comfortable with managing it and building an experience that should prove to be very useful with strategic alerts, price action / chart bots, and some live trading rooms to boot! I even found a sweet, on-brand URL too: http://8bit.community
Don’t forget to say “Hi!” and introduce yourself if you join:
It’s a bit humbling to be using Discord because just a year ago I was building a competitor as a technology startup but we failed to achieve product-market fit and, at the time, I was against Discord on principle. But it’s since gotten a lot better and it really is a decent solution. So, I’m eating a big helping of humble pie and it doesn’t taste terrible.
¯\_(ツ)_/¯
I appreciate everyone who’s given me feedback over the last 3 weeks as I’ve test-driven content, booted the Twitter back up, and launched a new community experience with unfamiliar technology that has really challenged me to think critically about how to build products as well as the exciting feeling of starting something new that should help a lot of folks find success. I’ve even caught a larger vision of building a “small business” around all of this but perhaps I’m getting ahead of myself already.
(－‸ლ)
Make sure that you’ve gotten all of the content in the Trading Library as that will go behind a paywall starting tomorrow. I hope you’ve found the content useful, interesting, and educational (at the very least) and perhaps it’s even inspired you to consider adding the skill of “trading” to your tool kit!
The market is always here and always ready for your time and attention and money. I wish you all an amazing 2022! Let me know how I can help.
To infinity & bitcoin,
— 8ɃIT
Resources, Alpha, & More:
Every week I’ll share a few links to things that I find interesting, useful, or simply entertaining. There’s very little method to this madness.
I like simple TA but sometimes this is straight hopium. As I’ve mentioned in the Trading Library I do follow accounts like this so I can know what the more “popular” influencers (like these guys) are saying and how some of them (not all of them) are FOMO’ing retail to buy their bags while they exit in profit. If anything I use this signal as sentiment analysis and I’ll trade against their advice. The results have been good so far!
When Bitcoin Spot ETF? Eventually? Maybe? Blockware’s newsletter is one of the better ones out there and this paid one is cheap. Since I’m getting back into writing this is an unbelievably useful material on how to do it all better:
Having the right perspective is absolutely crucial when trading bitcoin (and doing the long hodl if that’s your game). Kraken levels-up and I might try video (for paid subscribers) since I’ve gotten early-access. Want to get a job in the bitcoin space? That might be a really wise and strategic long-term play and now would be the time to jump in.
But, to be honest, if you believe that bitcoin is going to take over the world then every job will eventually become a “bitcoin job” just like every company now is a “technology company” — history doesn’t repeat but it rhymes.
Texas representing and Fidelity spotting 401(k)’s while Bitcoin Core achieves release 23 (a pretty “meh” update which is good). Learned more about “Iron Condor” types of trades and “Gamma Exposure” which sounds like something the Hulk experienced. I’m not into conspiracy theories but this and since I trade using stablecoins I keep track of their progress and how folks are thinking about them as much as I can.
Mamis Cycle anyone? I’ll eventually build out my own degen “sentiment trading cycle” and share it on Twitter and get all of the retweets! Crypto.
And your reminder to use stop losses or you’re going to get recked!
Love you all and have a great week!
Community Updates:
I’m going to start adding a few updates from our community Discord in this section but for now I’d love for you to just check it out and make sure to hit up the “Introductions” channel! We don’t need to have a big community, just a fun one!
I’ll also start adding any resources / alpha that the community finds into the larger and growing Trading Library. We’ll learn and grow together!