At the end of the morning, I sent 4,700 DOGE to do spot trading on Binance.
Shortly after receiving my DOGE I tried to see if there was an opportunity.
Here is the chart I had before I made a decision :
After a quick analysis, a fibonacci retracement gave me 3 possible targets (1135, 1088, 1040) :
Here are my buy and sell orders :
My earnings are 100 DOGE and 179,600 Satoshi (BTC) minus Binance fees.
If we analyze this trade taking a step back :
We can see that I could have made a more interesting gain but I chose to be careful by favoring a low retracement. As I said in a previous post (Newcomers Trading) : “I'm not a pro trader”. Also, this was my first trade on the DOGE/BTC pair.
I had accumulated Dogecoins through Faucets and Ptcs. I continue to accumulate cryptos with few faucets and ptcs even though the rewards are low, I might be happy to have them in the next cycle of Bull Run in 4 years as I am currently with what I have had since 2017 (Newcomers Strategy). I chose to trade some of my Dogecoins because Dogecoin has risen well for certain reasons that I won't discuss here. So there are opportunities for me to seize on the DOGE/BTC or DOGE/USD pair.
My short term strategy is to accumulate more crypto so I don't have to regret not making more gains on this trade as I haven't lost anything and there will be other opportunities.
Now let's see what Dogecoin could do against Bitcoin and Dollar :
As we can see from the previous screenshots, there are bearish divergences in daily, also visible in weekly. Also the monthly RSI is very high, but the monthly RSI can stay high for a long time before there is a correction.
There could also be a short-term rebound before a larger correction appears.
This is not investment advice. And the possibility that I'm wrong is also to be taken into account.
The crypto market is young, volatility is high, do your own research and measure the risks before making a decision.
Thanks for reading my post and happy earnings :)