If you are following me on Twitter @ChrisConeyInt you’ll have seen me post this chart plotting the price of BTCUSD on BitMex which shows the price becoming exponential.
That’s not sustainable. Even FOMO energy becomes exhausted at some point.
Plus I just did the whole Why The Japanese LOVE Bitcoin video talking about the natural rhythm of markets and how we have to have a natural expansion and contraction for growth to be sustainable.
The same principle applies here.
The Trade Plan
So basically this strong move up with an increasingly large breath in, means I’m planning for a similar sized breath out.
And since I want to end up with as many of those 21m Bitcoin as possible, placing a short trade ends up getting me some extra Bitcoin for free.
The main thing I need is a good entry. In this case it’s pretty simple… when the price breaks this exponential curve line.
Then I’ll ride it down to like $5,000.
When I close the trade and take profits will of course depend on what the chart says as new candles appear. But that’s the plan based on current data.
I don’t know if the same thing applies in other countries but in the UK we can use platforms like ETX Capital to trade Bitcoin in such a way that the profits are 100% tax free.
That’s such an exciting opportunity that I’ve signed up to their referral program.
You can open up a free demo account with £10,000 of play money so everyone can do that just for fun.
Bear in mind as per the message at the bottom which UK regulation says has to be declared 78% of retail investors lose money with this provider.
That’s largely because those people don’t know what they are doing so checkout my online course The Master Cryptocurrency Trader which will help make sure you are in the 22% of winners and not the 78% of losers.