Potential Margin Trading Opportunity Between BTC and LTC/SUB!

in #trading7 years ago (edited)

((My next trade: Transfer LTC and SUB into BTC at 6am EST. Then Set sell order at $18,200))

Reasoning:

There appears to be an inverse relationship between LTC/SUB and BTC right now:


(You can see the same pattern with LTC)

As I write this, we are seeing BTC start to come down at resistance levels just as both LTC and SUB correct at their respective support levels.

We are also witnessing a pretty steady upward correction of BTC. I believe that the reason that this correction is not exuberant is because people are not ready to stop being bullish on alt coins. Since there are still plenty of coins that still have room to grow, people are not willing to dump their whole basket back into BTC. Instead, we have seen profits from over extended coins like XRP dumping into BTC.

This dynamic creates a predictive environment for margin trading (something foreign to this market). BTC has already established consistent support and resistant levels in this correction:

If it weren’t for promising news from both Substratum (Alpha II test on 1/15) and Litecoin (rumors of Amazon partnership and Segwit success), I would expect an upward breakout of the BTC resistant level. This is why I am confident that my sell order will prove profitable. Once BTC hits this next resistant price, we will see continued growth of LTC and SUB. This pattern could continue for a couple of days, making for some very profitable margin trading.

I am seeing two potential buy opportunities for BTC at 6am 1/7:

I see the price correcting at either $16,312 or $15,673. I have a feeling that the price will want to hit the main support line before it corrects back up. If the price is in between both targets, I recommend waiting until the price hits the support line to trigger the trade.

Limit sell target:

My sell target is $18,200. You will find two resistance signs at that price. These are marked in blue. My plan is not to set an immediate buy target again until I can confirm that the price will remain in the margins.

The sell targets for both LTC and SUB match the time for the buy target of BTC:

LTC Sell target: .01900000 BTC

SUB Sell Target: .00016400

Since the profit targets are so high, there is a considerable amount of risk involved. It is important to hedge against any loss. That is why, I am only going to swing a portion of my investment into this trade. I also believe that HODLing in either of these coins will prove profitable in the long run, so it is important to consider what is best for you.
I wish you all the best and would love to get your thoughts on this!

Sort:  

I think that the ideal price to buy BTC will be at $16,312.

I had the wrong timezone selected. I think the BTC price will hit the support level at 6am EST.

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