This is a repost of my previous task
Hello everyone!
Week 1 of Team Trading Contest was amazing and I enjoyed a lot and secured a good profit in trading.
For Week 2 of Team Trading Contest, I have decided to be in team of professor @fredquantum and professor @kouba01.
Introduction of the token and the exchange in which I am trading
I am going to trade Bitcoin (BTC) today by doing it's analysis. I hope you all are totally aware of Bitcoin. But let me tell you more about it.
Bitcoin is a decentralized cryptocurrency which was launched in 2009. It has highest market capitalisation and It has very low circulating supply which makes iy valuable.
It is a digital currency which has many benefits like We can do instant transactions and can send money from any part of the world with low transaction fees and It takes minimum time.
It is available in almost every exchange including the most used exchange like Binance, Huobi, Coinbase, Gate.io, Poloniex and many more.
I am going to trade BTC on Binance Exchange. I am very competitive with Binance as It is very easy to use and It provides various features like it has very low trading fees. Binance Futures Trading allows leverage upto 125x on some cryptocurrencies which is more than any other major exchange.
Why am I optimistic about this token today, and how long do I think it can rise?
I am optimistic about this token as It has largest market capitalisation and It has very low circulating supply. It is totally decentralized cryptocurrency which is best.
It is the most popular cryptocurrency and All Altcoins are somehow dependent on Bitcoin. It's current market price is around $37800.
Let's talk about it's Statistics-
As you can see from the above image, Bitcoin has a total of 720.1$ Billion market cap. It has a Circulating supply of 18.97 Million. It has low circulating supply which means it can grow very well in the future.
In recent month, It has touched an All time high of $68,789. It is currently ranked #1 on Coinmarketcap.
How to analyze the token?
I am going to analyse BTC token with the help of various technical tools and strategies. I have selected Heikin Ashi Candlestick Chart as I am very comfortable with this chart pattern and It is very simple to read and It removes all noise and disturbance from the chart which makes easier for the trader to read the chart.
First of all, As I have to do a scalp trading. So, I have selected small time frame chart which is 30 minute and then I have marked Support level and Resistance levels on the chart.
From the above image, You can see that I have marked Support and Resistance level on the chart and I have also applied EMA Indicator of 30 days length on the chart.
You can see that EMA Indicator is above the price which is a sign of downward movement and I can predict that price is all about to go to that support level. So, I can predict that point as my entry point.
For confirming, I have applied Ichimoku Cloud Indicator on the chart for confirming my entry point.
From the above image, I have applied Ichimoku Cloud on the chart and you can see that Red cloud are forming at that point and Ichimoku Base Line and Lagging Span are above the price which confirms my entry point. I have marked take profit level and stop loss level on the chart itself.
Hence, I have taken my entry and opened a long position on Binance Exchange. I have taken 4x Leverage on this position. Here are my trade details.
I have also set my take profit target at $36,700 and stop loss at $39,000 as you can see in below image.
You can see liquidation level, leverage, entry point of this position in the below image.
Your plan to hold it for a long time or when to sell?
Well, I will do scalp trading current as per the opportunities and will take exit if the trade hit my take profit level or stop loss level. I am not willing to hold it for a long time. But If I found opportunities in future, Then I can do Scalp trading. It can be a better pick for long time but I will do scalp according to tradition opportunity.
Do you recommend everyone to buy? and the reasons for recommending/not recommending.
Well, Everyone knows how strong is Bitcoin. It has a lot of potential to grow in the future dure to it's large market cap and low circulation supply.
So, I can confidently recommend it to everyone but I would like to add something which is You should take entry at right time.
You should do your own analysis on it and then you can take entry and It is good for long term and If you are willing to do scalp, then do proper research and with proper strategies.
Other Information about the Token
You can know more about Bitcoin like It's development process, testing on this site.
Here, You can check it's Whitepaper.
You can also check Bitcoin's official website
Cc:-
@fredquantum
@kouba01