This one comes directly from my trading diary. I decided to share it because I think it gives a fascinating insight on the subject of discretional trading vs. BOT trading in criptocurrencies.
I am a discretional trader and sometimes I feel dazzled when, in a trade, I stumble against a wall of automatic BOTs that are scalping a particular price.
In criptocurrencies more than in stocks, this happens often, and after some time you become able to recognize when BOTs are massively acting on a particular price level.
I think this thing happened to me in a trade I made last Saturday (26 June 2021).
So, what was the situation? The Bitcoin was bouncing from its last dip. Originally I thought of entering LONG on BTC, because I was pretty sure that the bounce had momentum, but then I realized that such a trade would have a very low Take Profit target. So, I started searching for strongly correlated altcoins, and after a quick research I found that MATIC was struggling little above its 1.00 USDT support.
I value 1.00 USDT as a very strong psychological support for every altcoin, not only MATIC in particular. Falling under 1.00 USDT is a signal that could send a destabilizing message about the whole project.
I stood watching silently the acrivity on the graph for some minutes: despite the coin was trading in a range, the volumes were good.
My impression was that there were two armies of BOTs fighting, one short and one long, but the short could not take over the position because of the importance of such a level of support.
So, in the end, I decided to enter long. Today it's 29 of June and, after three days, MATIC is trading at 1.13, allowing me to place a stop limit order at 1.10.
What impressed me about this trade is the massive activity around the level of 1.03. I had the very clear impression of a confirming support and that intuition proved right. In my next trades I wll search for signals like that more than basing on the classic MACD and average crossing signals: after this experience, I am founded of the importance of taking support level as an entry point for a trade.
