Bitcoin finally surpasses 350,000 yen on BTCFX! But a huge crash brings trouble! And what is the secret to rebound trading?
Hello everyone, big crash! The cheerful crash-bringer who loves crashes@xi10jun1is here.
Has Bitcoin finally surpassed 300,000 yen...? It’s moving so fast I can’t keep up…
The amount of margin required for trading has also increased, making it harder to take positions as before.
Note: This column is designed so you can read half of it for free, like a bundle of conscience. Of course, if you read the paid portion (updated weekly at 400 yen per month, so about 80–100 yen per column), it would be very encouraging!
This week's results (May 19, 2017 to May 25, 2017)
First, as usual, the results. I’ll announce the gains and losses first.
- Last week (through May 18, 2017) assets: 96,773 yen
- This week (through May 25, 2017) assets: 93,966 yen
- Net change: -2,807 yen
This week was a loss... I was traveling to Tokyo for business, trading fewer times, but it’s still difficult.
Continuing from last week, price swings remained large. When trading on a market order, when buying it can be 301,000 yen and when selling 300,000 yen, a 1,000-yen spread appears, making it very challenging trades.
And this morning's big drop. I’ll mention it in the paid portion, but the drop was around 100,000 yen in one go…
I thought, “Could I rebound from it?” and tried a few trades. Then.
Although a bit hard to see, it suddenly turned to a 6,298 yen gain! A recovery into the six-figure asset range—back into the 100,000 yen territory!
So this time I’ll write about this rebound strategy. Explanations with images will be in the paid portion.
Is a rebound opportunity possible right after a big crash in such a market?
Big crashes like this aren’t desirable for buyers, but they actually hide many opportunities.
This is because the chart tends to show buy signals and you can leverage the strength of the rebound.
As it’s often said, it takes a long time for prices to rise due to buying, while selling can shape prices very quickly.
However, there are moments when prices rise just as quickly as they drop, and that is the strength of the rebound (buying) after a crash.
This morning I thought, “Could I rebound from it?” because of this. I determine reversals using candle averages, take positions, and use the strength of the rebound to rapidly increase profits.
Notes
But there are cautions: just because prices rise, holding a position for too long can expose you to subsequent drops (second and third waves).
From the moment of the crash, the market’s eyes are already downward. So it’s safer to close positions on shorter timeframes rather than holding long-term.
That said, if you go too short, you can’t grow profits, so this is the tricky part.
When I rebound, I mainly look at 1-minute charts, then 3-minute, 5-minute, and at most 30-minute charts to find rebound opportunities. If a position was taken on a higher timeframe and there’s a strong pullback (a long candle), I close on the next lower timeframe.
Free roundup: rebounds can be more profitable
Especially for Bitcoin that rises in a way that's wary of a crash, rebounds alone can yield nearly several tens of thousands of yen per 1 BTC position.
However, it’s a riskier trade, so don’t enter positions right after a drop. Look at other timeframes and wait for a calm moment to time your entry.
So, the actual entry points are detailed in the paid column from here on.
Endnote 1: Let’s try shopping with Bitcoin!
In fact, on overseas site FANCY you can buy goods with Bitcoin! The shipping is a bit costly, but there are stylish items you won’t see in Japan!
I’ve summarized how to use FANCY on this blog, so please refer to it.
- →Explaining how to create an account, register, set up, and how to purchase on FANCY | Investor Jun, the easygoing generation
- →How to purchase items on FANCY with Bitcoin (Bitcoin) | Investor Jun, the easygoing generation
Endnote 2: How to file taxes for Bitcoin margin trading (BTCFX)?
You must file taxes for BTCFX profits too! I’ve written a blog post after confirming by phone with the tax office, so please refer to it.
Tax offices and CPAs may have differing views. Also, laws can change, so filing methods may change. Before filing, please confirm with your nearest tax office or a tax professional.
Note: Free content ends here. The rest includes detailed analysis and future outlook, so it is paid. If you’d like to read more, or if you’d like to support me with a tip, please subscribe—your support is greatly appreciated! Thank you for your continued support!
