29.12.22
Today’s crypto trading spotlight deals with the cryptocurrency BitDAO, which is a collective of builders, products, and mutually beneficial ecosystems governed by $BIT token holders.
One of my last trading plans for the cryptocurrency Solana worked out very well. It went from $12.50s to now below $9. You can take a look at the plan via the following link: https://medium.com/degenarchive/trading-spotlight-cryptocurrency-solana-sol-1e247b868f5
$BIT has seen a fairly big spike compared to the rest of the crypto market, as it went from about $0.28 to around $0.34, with it now sitting at around $0.337. So far it wicked above $0.34 3 times and was rejected every time, but it is trending upwards nonetheless. It is running into resistance there, which is now resistance at the daily as well as on the 15 minute chart. You can see the daily chart below with a resistance line at $0.34ish.
The plan depends on the resistance line holding with the crypto market still weak and not showing a good sign of strength the chance of the resistance line holding is pretty good in my opinion.
To support the daily, I have looked at the 15 minute chart, which you can see on the image below.
So the trading plan is to go Short against the $0.34 resistance, looking for sub $0.30 price levels to cover the position.The risk for this trade is right above the recent high from the 15 minute chart. This price level is $0.3428, so if the price spikes above that level, I have a stop loss order in place to cover.
This trade has a very tight risk range, so the risk reward is very good on this one. The closer the entry level is to $0.34, the bigger you can go, but be careful of quick spikes. And the better your entry, the faster you can cover parts of your position, to get a little cushion and be more comfortable with the position.
I hope this helps you to get a good idea about my trade plan. Below follows a trade plan version in one sentence.
TLDR
Short BitDAO against the $0.34 resistance, putting a stop loss above the recent $0.3428 high, with entries in the $0.335 - $0.34 range, going for a price target below the $0.30 range.
Have a nice day and a good new year.
Niklas
This is not financial advice, it is for educational purposes only!
