TheAlphaTrades
Short

Learn How to Win at Trading Bitcoin! Why we shorted at $10k

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
Why we shorted at $10k when others longed.

Happy Friday, folks.

Over the last several days, we’ve had a couple of members join that said “I was in another paid group and lost so much money,” or “I thought I knew technicals and ended up really screwing the pooch on my account.”

They may come to our community thinking “It’s gonna be an easy ride, I’ll just play the buy and sell signals.” That’s not the case — You have to put in the work when you join my community in order to be successful. The best thing we do in our community is outline everything clearly so if you have a clear understanding of what my team’s overall game plan is, with defined risk in terms of stop losses, where target profits are, and where potential entries are.

As an example, on May 12 I started building a short position in Bitcoin with a stop at 9500. As the price kept moving up, I saw this as a great opportunity to keep building my swing short position. I shared an in-depth analysis with my community regarding why I was adding to my position in terms of what the overall market was doing, making the case for why I believed Bitcoin has topped off.

The sad reality of many paid groups is they don’t hold themselves accountable, and when people join these groups with the intention to only follow buy and sell signals, more often than not those people will be lied to. The group leaders may cook the books to show greater profits, and their followers end up getting burned. At Alpha Trades, we share both our gains and losses, our community always knows exactly why we’ve entered or exited a trade.

We believe in transparency and accountability, sharing real trades with true profits and losses. For example, my 10% take-profit area in this current Bitcoin swing trade is 8725.

Our audience outside of the Advantage community may believe there’s no value to join when they get so much free information. Sometimes we do release some of our best trades on the free side, such as four days ago when I shared why I was shorting Bitcoin near the high of 9979. Since then, Bitcoin has put in a low of 8800. Following my analyses would have provided you with potential short trade setups while everyone on Crypto Twitter was thinking this asset was going to break up. I explained at length to my community why I believed a breakout was unlikely and rather, it looked like professionals were selling or shorting while guiding the price into demand on the back of retail buyers.

Additionally, the other day when the price was around 9059, I let paid members know all bounces from there could be seen as a shorting opportunity. Alternatively, there were some quick scalp long opportunities from 8900 to 9099.

Again, none of this is trading advice. It is my team’s thought process, based on our opinions and deep knowledge of the space. We are here to provide an educational advantage to you.

The next Bitcoin opportunity

If the price comes back towards the four-hour pivot and is rejected, I’ll likely alert my paid members of a potential short setup. It’s a bearish sign that the price did drop through the pivot recently, and the price hadn’t broken below a pivot in several days. A likely target fora short position on the rejection of the pivot would be the S1 near 8565. Trading from pivot to pivot can be a valuable trading strategy to have in your arsenal.


I held onto my Bitcoin short position even as the position continued to bleed because I had conviction in my analysis, my invalidation levels were never hit. While the snake oil salesmen on Twitter are only reporting their losses, I let my community know every step of the way that yes, the position was in the red, but I had sound reasoning for holding and even adding to the position.

About 24 hours ago, I informed my audience that my near-term short targets were 9100 and then 8925. We have since pierced both of those levels, with a close back above the EQ as marked by the channel on the chart provided earlier. I figure we’re going to reach 9275 to 9300 and then roll back over.
Another good sign of a Bitcoin rollover is the E-mini S&P ( ES1! ) is also breaking down, hitting almost 2902 overnight. Monday is a holiday in the US, so it’s more difficult to say what will happen in the equity markets or BTC because the majority of the volume in both of these markets comes from the United States. As my community is well-aware, it pays to be cautious of weekend shenanigans.

On the three-day timeframe BTC keeps hammering on the lower trend line from the key higher low in February 2019 and the 6410 low in December 2019. I envision BTC hitting the trendline again as support, which would be in under two days. Smashing below that support line would build momentum towards 8100 or even 7470.
OBV is still consistently moving down, meaning inflows are not enough to propel the price higher. I spoke in the video from yesterday how open interest is continuously going up as price is descending, which means there are more shorts coming into the system and longs closing out. Non-reportables, which are individual investors and retail traders, are actually going long versus non-commercials, which are hedge funds and institutions and are actually building short exposure. My question is this: should you follow the average person who doesn’t have as much money as hedge funds or institutions, or do you want to follow the big money, the “whales”, right?


SPY options trade is holding strong

I entered a SPY option on May 20 when it was priced at 3.05. In less than one day, I was up 20% on that trade and told my community that was a good area to take profit, and stated how I intended to hold a bit longer.


Disclaimer

Information provided by Alpha Trades, LLC is not intended to be utilized in making any financial decisions and is not a solicitation, nor recommendation to buy, hold, and/or sell a particular product, digital asset, or ICO .

Comments

Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Refer a friend My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out