Has the BTCFX thick order book become easier to break through? How should we攻略 (approach/advantage) it?
Hello everyone, BTC! I’ve been losing money on cryptocurrency-related stocks@xi10jun1.
Sorry for the late update. I had some sudden family matters, and it was hectic.
By the way, I had bought shares related to a cryptocurrency called Kaika, but unlike Bitcoin, the price didn’t rise at all and I cut my losses. Stocks are no good either….
And I have an important notice for those who read this for a fee, so I’d appreciate it if you read down to the bottom.
※This column is designed so that half of it is free to read, a true act of conscience. Of course, if you read up to the paid portion (weekly updates, 400 yen per month, so about 80–100 yen per article), I would be greatly encouraged!
This week’s results (June 2, 2017 to June 8, 2017)
First, as usual, the results. I’ll announce the changes first.
- Last week (up to June 2, 2017) assets: 108,635 yen
- This week (up to June 8, 2017) assets: 110,701 yen
- Change: +2,066 yen
This week also managed to push asset highs up! A dream of 110k yen!
There were many unnecessary stop-outs, and I barely managed to turn it back into a positive through recovery… While Bitcoin has been rising, the performance feels lacking.
Now, about this week’s market movement as well, as the title suggests, it’s about the “thick order book.”
Thick order books commonly seen in BTCFX
There are times when large orders appear on the order book, such as 50 BTC or 100 BTC.
In this gif, there is a buy wall of 29 BTC at 260,000 yen. By the way, this is a video I saved from the week before last, so the position is from the week before last as well.
Recently, as Bitcoin’s price has risen and more new participants joined, there have been more orders at relatively small positions (0.001 BTC to 0.1 BTC level).
Therefore, even on a 29 BTC wall, at 1 BTC = 260,000 yen, it’s a sizable order equivalent to 7,540,000 yen.
And then, about two minutes later, it looked like this.
It may be hard to see, but in one go, without any hesitation, it gets settled.
A recent characteristic of price movement is that even with such a thick wall, it settles aggressively without hesitation, making it harder to bounce back.
Thus, if you place orders one yen above or below the wall for stop orders, the wide price range of the recent walls (for example, if you have a sell order at 260,000 yen and set a stop at 260,001 yen, the next order is 260,500 yen, increasing the actual stop-out loss by 500 yen) can lead to large losses.
Of course, the opposite is true. If you hold positions in the direction of the trend, you can expect large profits from the momentum.
Free summary: The changing norms of BTCFX markets
Until around January this year, when a 100 BTC wall appeared, there would also be a thick wall 1–2 yen below (or above) it, and it would bounce back.
But now, price movements are so volatile that such walls are eaten up in an instant, and there are orders that can be mistaken for traps, increasing the difficulty beyond just price.
Bitcoin prices change daily, so it’s important to stay calm and analyze daily.
Now, how should we respond to such thick walls and price movements? That will be covered in the paid column.
Handling of the paid column
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End note 1: Shopping with Bitcoin!
Actually, on the overseas e-commerce site “FANCY,” you can buy products with Bitcoin! It does incur shipping, but there are stylish items not seen in Japan!
How to use FANCY is summarized on this blog, so please refer to it.
- How to create an account, register, set up, and purchase on FANCY (Fancy) | Investor Jun of the Yotoki Generation
- How to purchase items on FANCY with Bitcoin (BTC) | Investor Jun of the Yotori Generation
End note 2: How to handle Bitcoin margin trading (BTCFX) for tax filing?
You must also file taxes for BTCFX profits! I’ve written a blog post after confirming with the tax office by phone, so please refer to it.
※Tax office and tax accountants may have differing views. Also, laws can change, which may alter filing methods. Before filing, be sure to check with your nearest tax office or a tax professional.
※ The free portion ends here. The remainder contains detailed analysis and future outlook, so it is paid. If you want to read more or feel like supporting with a donation, please subscribe—your support greatly motivates me! Thank you for your continued support!
