BTCUSDTPERP Sell Short | S6W1 | Team Trading Contest Post for Investors-Team

Hello everyone, today I decided to trade the mother of cryptocurrencies. Bitcoin is highly volatile and so I traded using a smaller timeframe to reduce risk and loss. Like my previous posts, I would state the questions required for this post and answer them.

Bitcoin is the mother of all cryptocurrencies. In 2008, an anonymous person or group with the name Satoshi Nakamoto provided the white paper of the Bitcoin project. Later the following year, on the 3rd of January 2009, the Genesis block was created (mined). This served as the foundation of Bitcoin and launched its creation. Bitcoin paved the way for the use of Blockchain technology. This technology was dormant since 1991. Stuart Harber and W. Scott Stornetta discovered this technology but it wasn't utilized until Bitcoin.

Bitcoin according to Satoshi Nakamoto was created to provide a better means of sending money to people online instantly without having to pass through the financial institutions. He disliked the centralised financial system. Bitcoin is open-source and also decentralised. It is not owned and managed by a group of people. It is also very secure with its proof of work consensus mechanism.

According to Satoshi Nakamoto, the centralised system is a failure. Bitcoin was created to provide a better alternative. Its decentralization has brought about many benefits. In its early stages, its adoption was low. Currently, it is accepted almost everywhere.

While the founder of Bitcoin is unknown, there are still people that have made developments on this blockchain to make it better. Among them, we have Gavin Andresen, Wladimir J. van der Laan, Marco Falke, Pieter Wuille, Gavin Andresen, Jonas Schnelli and others. There are more than 700 contributors to the development of Bitcoin.

The current price of 1 Bitcoin is $38,523.95. It has a market cap of $730,699,112,063. Its maximum supply is 21,000,000 BTC. Currently, more than 90% is in circulation. Its total supply at this time is 18,967,400.

The first 50 BTC mined had a value of $0.0. With time, people started to gain a lot of interest in cryptocurrencies. Bitcoin reached its all-time high of $68,789.63 on November 10, 2021. It is considered very volatile, it can rise greatly and fall within a short period.

Bitcoin being the first cryptocurrency, can be found in almost all cryptocurrency exchanges with different asset pairs. The popular exchanges you can trade Bitcoin are Binance, Huobi Global, Gate.io, KuCoin, Kraken, Bittrex and many more.

Bitcoin hit its lowest price this week today at $34,459.22, I expected the price to drop further after rising for a while. After hitting a resistance level of $68,789.63 it started dropping steadily. The price is expected to drop as low as $29k.

For today I was bullish after identifying new support at $34,459.22. I expected the price to drop a bit after rising and also continue to rise before it falls again. I think bitcoin would continue increasing again after hitting a strong support or demand zone. It could get to $70k before the end of the year.

Support and resistance levels are key to trading. They help you spot good entry and exit points as they allow you to predict the range of the movement of price.

I marked the support and resistance levels on the 4-hour chart and switched to a lower timeframe to spot a good entry and exit point.

From the 5 minutes chart, the trend was bullish. I marked this with trendlines.

Price moves in a wavy pattern. With my expectation of price falling, I decided to find an entry for a short position. The details of how the trade went wold be provided in the next section.

I chose to trade futures on Binance with BTC. The asset name is BTCUSDT Perpetual. My plan was to make profits quickly without holding the asset but selling (short) with leverage.

I used the x20 leverage. My entry price was 35869.60 USDT, TP was 35436.4 USDT and SL was 36149.5 USDT. My margin was 5.35 USDT.

The price hit my entry and the order was triggered. The price nearly hit my SL but it didn't because I gave enough room so that I don't level the trade before it even gets started. I switched to the 1-minute timeframe to notice reversals and adjust my SL. This is the strategy I was talking about yesterday. Because price could rise and fall violently and hit your TP or SL it is best to focus on preventing any loss and taking the little profit. When you are in floating profits you can adjust the SL to a level you can make profits. I did this so that I do not leave the trade too early when it could reach my TP.

I placed a new SL at 35777.90.

The price retraced after going down a bit without hitting my TP and hitting my new SL which closed my position. If I didn't apply this strategy I would have either closed the trade too early on a false reversal signal or waited for the price to hit my initial SL which would have ended the trade with a loss.

The trade and transaction history can be seen from the image above. I made a profit of 0.2181.

Bitcoin is a good investment depending on when you buy it. Many people have made a lot of money with Bitcoin. I'd recommend others to buy Bitcoin, but they should identify good points to buy.

One other recommendation after you buy is to sell off when you make a profit. Many a time, people buy assets and hold for too long. The asset rises and they don't sell off and wait for it to drop more than 50% and sell out of fear.

Generally, you have to be smart when buying assets and also be ready for the risk included. I'd recommend you buy at extremely low prices and sell at higher prices. If you're good with the technicals, identify good exit points to sell-off. If you're not, don't be too greedy and expect the price to rise 100%+ before you sell. Gather information from fundamentals and learn some technicals to sell-off at the best prices.

Halving is an event where the reward for mining a block is split into two. The first block mined had a block reward of 50 BTC. Currently, the block reward for mining a block is 6.25 BTC. Halving occurs after every 210,000 mined blocks. This takes about 4 years.

Bitcoin halving has occurred 3 times. With every halving, the price of Bitcoin has increased significantly. As Bitcoin has a maximum supply of 21,000,000 BTC and its supply is through its block production rewards, a decrease in its supply causes an increase in demand.

This mechanism is a very good mechanism put in place to increase the value of BTC over the years and to keep its demand high. Halving is expected to end in the year 2140 when all the BTC would have been mined.

Today's trade was quite risky, I would have exited the trade without getting started if my SL was very tight. I managed to use the profit with the Stop Loss strategy and made little profit. All the same, I've gained more experience which would be good for another trade.