Bitcoin Price Diary: Long Bitcoin, Bullish on Altcoins – XLM, VET, ONE

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.

XLM/BTC

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. Source: TradingViewXLM BTC daily chart. Source: TradingView

XLM BTC 15 minute chart. Source: TradingView

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.