Trading altcoins continues to be one of the near profitable strategies in the crypto marketplace. The highlight of this week was the MATIC (MATIC) pump and subsequent dump, which I was lucky enough to time perfectly, securing a 60% turn a profit near the all-time high. I closed a number of positions in profit, and am still trading EtherParty (FUEL), (IOST), Elrond (ERD), Chainlink (LINK), Zilliqa (ZIL), Verge (XVG) and FunFair (FUN).

I failed to take profits on some of these coins at the first resistance and target, only to meet them retrace to my entry and this presents an of import lesson about being too greedy. Each setup looked good, simply the MATIC motility spooked the marketplace and caused a ripple effect that saw temporary cost depreciation beyond the board. Lesson learned.

BTC/USD update

Bitcoin (BTC) has been chopping sideways with errant wicks both up and downwardly throughout the past week, probable liquidating high leverage traders on both sides. I am shortly long Bitcoin from $7,100 later on taking two other positions that closed fifty-fifty or in a slight turn a profit this week.

BTC USD hourly chart. Source: TradingView

BTC USD hourly chart. Source: TradingView

The kickoff point that sparked my interest in a long position was a articulate bullish deviation with the Relative Forcefulness Index (RSI) on the hourly chart. I normally do not trade lower fourth dimension frames, but I noticed that there were potential divergences showing on larger time frames, so I zoomed in. Frequently nosotros will see an hourly bull departure confirm on the four-hour, 6-hour and daily timeframes.

BTC USD 4-hour chart. Source: TradingView

BTC USD iv-hour chart. Source: TradingView

I decided to enter a position at $seven,100 when the price dropped down to the previous swing low at $vii,080 and then bounced. This looked probable to confirm as a bullish swing failure pattern (SFP). At the nigh basic level, when toll wicks slightly below a previous swing low, it's an indication that liquidity has been engineered by a whale.

In this case, information technology seemed likely that they pushed price downwards to hogtie retailer traders to accept shorts, and besides to fire existing terminate losses on long positions - thus creating a ton of sell orders to purchase into. The toll has currently risen from that indicate.

BTC USD 4-hour chart. Source: TradingView

BTC USD 4-hour chart. Source: TradingView

Furthermore, the price is showing a potential bullish departure with the RSI on the daily chart, which would exist a probable signal of a bottom. I am awaiting confirmation, as this would make me feel far more secure in my current position.

FUN/BTC

Trade thought

FUN offered a very clear trading opportunity this week. I pulled up the chart after not looking at it for almost ii months and establish that toll had connected traveling in a aqueduct that I drew in October nigh the local highs.

FUN BTC daily chart. Source: TradingView

FUN BTC daily chart. Source: TradingView

The ideal entry would accept been a bounce off of the channel bottom, between .00000033 (sats) and .00000038 (sats). However, a clear resistance formed at .00000044 (sats), which flipped to support and was my entry, as shown below.

How it worked out

The toll moved up very quickly, topping out at .00000060 (sats). I exited half of my position at .00000056 (sats), for a quick profit of 27%. The rest of the position is still open and my target is at the meridian of the channel.

IOST/BTC

Trade idea

This is a relatively straightforward trade. The price was forming a pennant at support (not shown) before the Binance shakeup. The MATIC move caused the price to drop through support at .00000080 (sats). I was watching for a bounce off of the blue ascending support but saw price quickly drop through and entered at .00000071 (sats) just higher up the horizontal back up line.

IOST BTC daily chart. Source: TradingView

IOST BTC daily chart. Source: TradingView

I want piddling to practice with IOST below that line, or below the .00000070 (sats) support and I accept set my end loss at .00000067 (sats) because this would allow for a wick beneath that .00000070 (sats) support and close back above.

How information technology worked out

IOST BTC 4-hour chart. Source: TradingView

IOST BTC four-hour nautical chart. Source: TradingView

This trade is currently all the same open and starting to move equally predictable. Later on my entry, the price continued to test the .00000070 (sats) back up, dropping beneath past 1 sat but never reaching my terminate loss. The price then formed a descending wedge, where it is currently breaking up from. Initial targets are shown as black horizontal lines.

The views and opinions expressed here are solely those of the (@scottmelker) and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You lot should carry your own research when making a decision.