Astronomer@astronomer_zero
$BTC longs
Still believing in 71.5k. Going to add more. Not yet, but if weekend lows get taken out.
Alright bitcoin did not follow our plan of Yesterday. instead of holding 70.7k, it fell through and price retraced to entry and beyond.
We were looking good, trade was up 1400 points, but now its 1000 points below entry.
Bit of an unfortunate chain of events, with weekend announcement taking the trade down, also creating valid weekend lows.
That puts the trade in a tricky spot at the moment because I still believe 71.5k is coming, but post FOMC reversal downside momentum is carrying on now just a bit longer.
My actions
Given the separation of two execution scenarios; the first one being my typical strategy - set it risk free into 71k, after we were up 1400 points (A), and the second one being the execution I went for myself exceptionally (holding without TP at 71k) since my size on this long was very small (B).
So if you set it risk free (A), and followed my typical approach, then you would be flat now. In this case, I would not enter anything new, wait for the weekend lows to be taken out before entering again targeting 71.5k.
If price just runs from here to 71.5k, then that's a nice short towards weekend lows and our long awaited 65k area where I deem the FOMC reversal over by now.
If you are still in the trade like me (B), I think for this trade, it's okay to add more for once especially if you went small like me, turning this trade into a proper sized one given we have clarity.
Not going to add here though personally, but getting an as good entry as possible, which is below the weekend lows. Not setting limits either as Monday is coming so ideally we see a down trending Monday for a bit, giving a chance to enter a bit below weekend lows.
If price runs from here to 71.5k, then it still pays on the open trade, albeit for a smaller pay. But then weekend lows are still untouched which gives more confidence in our short idea from 71.5k+, the area we have been waiting for to short for a while, to work out, offering us a second trade.
That sums up why I believe it's a good idea to hold on. Using strategic positioning to manage the trade.
Not an orthodox strategy, but the fact we had an event on the weekend allows ourselves to do that because this amount of weekend liquidity is very typical to be run both ways, i.e. clear out weekend lows, and run 71.5k target. Holding a trade in between is opportune to take it towards a win, or even two wins.
