A REPOST OF MY ASSIGNMENT [BTC|USDT BUY - S6W3 |Crypto Academy Trading Competition | Post for TEAM FRONTLINE

Hey guys, Welcome to the first week of the SteemitCryptoAcademy trading competition. In this first week, I will be joining the team of professors @abdu.navi03 and @Shemul21

QUESTION 1

The name and introduction of the project token, and which exchange it can be traded on, project/team/technical background, etc.

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PROJECT NAME

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• BITCOIN

_Bitcoin

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INTRODUCTION

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BITCOIN which is commonly known as BTC is the first-ever cryptocurrency that was created.

Bitcoin was created on the 18th of August 2008 and it's the white paper which was written by an anonymous person known as Satoshi Nakamoto was released on the 31st of October the same year.

Bitcoin's invention aimed to decentralize finance for the fact that centralized finance was one of the main issues behind the collapse of the world economy which happened in 2008.

The world is evolving and technology is rapidly taking over every system and the financial system isn't left out.

The invention of Bitcoin has improved the financial system by providing us with a more secure, faster, and more reliable means of dealing with our finances.

Bitcoin makes use of a consensus mechanism known as the proof of work and it undergoes halving after every successful completion of 210,000 blocks which tends to complete roughly every 4 years.

Before the first halving, miners who are those who help in maintaining the security and honesty of the network by solving complex calculations using sophisticated computers, earn a sum of 50 BTC after each successful record.

The reward was halved to 25 BTC after 210,000 blocks of transactions were successfully recorded.

The reward was later halved to 12.5 before the last halving that occurred in 2020 which saw the reward reduced to 6.25 BTC.

This halving is aimed at increasing the scarcity of Bitcoin thereby increasing its value.

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EXCHANGE IT CAN BE TRADED ON

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Below are some of the exchanges on which Bitcoin can be traded.

_source

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TEAM/TECHNICAL BACKGROUND

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There are a series of anonymity behind Bitcoin development but originally Bitcoin.org was registered by Satoshi Nakamoto and Martti Malmi with the formal being anonymous.

Currently, the Bitcoin maintenance team comprises Pieter Wuille, Marco Falke, Michael Ford, Jonas Schnelli, and Samuel Dobson and the team is led by Wladimir van der Laan.

_source

QUESTION 2

Why are you optimistic about this token today, and how long do you think it can rise?

The very fact that BTC is regarded as the father of all cryptocurrencies made me optimistic about it.

Also, the analysis I carried out on it using some knowledge I acquired from this community gave me a good signal which led me into taking a buy position.

Another thing that made me optimistic about Bitcoin is the positive update I saw online.

• Screenshot

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QUESTION 3

How to analyze the token? (using the analysis knowledge learned from professors’ courses) - the most important part.

In this part, I will be explaining the technical analysis I carried out on the BTC|USD pair on my real MT5 account.

I started by applying a Bollinger band indicator and an RSI on a BTC|USD price chart.

The Bollinger band which is a trend indicator will help me identify trend direction and also aid me in supporting dynamic support and resistance areas on the price trend.

On the other hand, the RSI which is a volatility-based indicator will aid me in identifying when the price is either overbought or oversold. This will serve as a signal filter for me due to the confluence the indicator will be providing.

On a BTC|USD pair, I checked using a 1hr time frame and observed that the price is currently at a horizontal support zone.

• Screenshot

_{Screenshot from MT5 App}

After observing the above, I switched to a 15m time frame in other to properly identify an entry and set my stop-loss and take-profit.

I wanted to enter using a smaller time frame because it will aid me in reducing the size of my stop-loss which in turn aids me in the proper management of my small capital.

• Screenshot

_{Screenshot from MT5 App}

From the above screenshot, the price was seen to be at horizontal support and at the same time at the lower band of the browband which serves as a dynamic support.

Looking at the RSI indicator, it was found to be almost at the oversold region which signals a bearish-to-bullish price reversal.

The above confluence made me confident that the price will reverse and that made me take a buy position.

• Result

_{Screenshot from MT5 App}

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• EXIT

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My exit was taken based on the market structure with my stop-loss set just below the support and my take-profit set at the closest support which is also in consideration of the stop-loss in a ratio of 1:1.

QUESTION 4

Do you intend to keep it for a long time or when to sell it

I do not intend to keep the coin for long as I am only an intraday trader who only enters the market with the mind of making a profit and leaving as fast as possible just as seen in question in number 3.

QUESTION 5

Do you recommend everyone to buy? and the reasons for recommending/not recommending.

I do not recommend anyone to buy and my reason being that the crypto market is volatile and risky. Therefore anyone who wants to vendure into trading it should do so willingly and always use what he or she can afford to lose.

• DYOR

CONCLUSION

Bitcoin which can be regarded as the father of all cryptocurrencies is the decentralized medium of exchange. Its security, privacy, and speed of transaction have made it popular around the world.

Choosing to trade it was at my own risk so I suggest anyone who wants to take part in trading it always does their own research.