thetradingparrot
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Potential BTC crazy move, changes to BTC grid bot needed
🕑 Added 2021-01-05 16:21:37 +0000 UTCBTC has been for months showing a very bearish pattern: the rising wedge. You can see an example of this pattern in the image below:
You can easily see the pattern in the 15 min BTCUSDT chart.
I see 3 potential scenarios for the short term:
1) Bullish scenario. Despite BTC showing for months bearish patterns it has not followed the most likely outcome as other coins/stock would. BTC might continue to not follow the most likely scenario and continue with the bullish trend, maybe delaying the bear outcome to the medium term. For this to confirm we first need to cross the 32.8K level and retest it so we can confirm we are actually back on bullish trend.
2) Bearish scenario 1. If BTC breaks down the 31.3K level and is not able to reenter the rising wedge area, then it's very likely it will drop to near 27K levels.
3) Bearish scenario 2. If the 27K didn't hold it can easily collapse to 23K level.
I'm going to update our BTC grid bot to use it for buying the dip. A grid can be great tool to buy a dip as long as we are able to identify the lowest target level and if we think that in the long term we are going to be very bullish.
My hypothesis (and many's) is that BTC will moon this year. Having the opportunity to increase my position size on a short term drop to 23K and then bounce back up represents a real risk but I'm willing to take it.
If you wanted to make the same changes to the BTC grid bot (as long as you do your own research) here are the steps. You can also have a look at the screenshot below.
1) Head to 3commas website, grid section, scroll down and find your BTC grid bot.
2) Update1: lower limit to 19900 USD
3) Update 2 (optional and extra risky): grid quantity from 10 to 20. This is doubling the investment on this particular move.
Make sure you have enough BTC for the sell lines above the price: check the quantity per grid and multiply by the number of grid levels on top of the current price. If you have not enough you will require to buy more.
If BTC went for scenario 1, this bot would not do anything significantly different compared to the previous configuration as long as you don't apply the update 2.
Risk warning: if BTC collapses to below 23K and remains there due to any market events or general fear then your grid would have bought all the way from the top BTC at higher prices. If there were any negative events BTC could remain at a low price for an unknown period and you will be at a loss.
Comments
BTC has done it again. Since November it has lost completely respect for bearish patterns. It's gone crazily bullish again. We are in scenario 1. I personally will keep the changes I did today to my grid bot in case BTC has shows a reversal.
