[Plummet Profit] Sorry! I made money as Bitcoin crashed! Now, what will happen next?

Happy New Year! I tasted the fear of Bitcoin once again@xi10jun1 This year as well, please take care of me!

Finally, the moment has arrived. Bitcoin, which had continued hitting new highs and surpassed 150,000 yen per 1 BTC, plummeted drastically to under 90,000 yen for a time!

While Bitcoiners were engulfed in a whirlpool of screams of despair, I made a profit. Oh man, sorry!

This week’s results (2016-12-30 to 2017-01-05)

First, as usual, the results. This time it’s a normal image.

I made it into a GIF. As the number of trades increases with each round, I can’t show all of the results, so I’m sharing them experimentally as a GIF. Sorry the image quality is a bit rough, but this is the limit for the file size I can upload… I’ll try to do a bit better in the future.

So, my assets increased. About +10% from last week.

I’ll introduce in detail exactly which trades increased it later.

Bitcoin market on December 31, 2016 (chart time: 1h)

From December 30 to 31, a triple-top appeared. This is a strong sell signal.

I forgot to note how large my position was, but with a 1 BTC position, I had 115,000 yen short → 112,700 yen price, profit about 2,300 yen. The 12/30 profit of 2,371 yen is in the GIF above.

Afterward there was a large drop, but the recovery was quick. The so-called “you sold at the bottom” scenario.

Bitcoin market on January 1, 2017 (chart time: 1h)

From the loss on the 31st, it slowly rose.

This pattern is familiar. It seems to be rising.

From this shape, strong selling is unlikely, so we’ll watch whether it makes a new high.

Bitcoin market on January 2, 2017 (chart time: 1h)

Yes, we got a new high! 120,000 yen!

It broke through easily, so it seems to continue upward.

Will it rise without a pullback…? The ease of hitting highs is a bit worrisome.

Bitcoin market on January 3, 2017 (chart time: 1h)

There were small corrective sells, but buying continued basically.

As shown in the image, the time to reach a new high is short, and the steady rise suggests more buying pressure.

Still, it hasn’t entered a range yet at this point.

Bitcoin market on January 4, 2017 (chart time: 1h)

Finally a price drop occurred, and I thought it might settle a bit, but it then hit new highs again.

It rose about 5,000 yen more, reaching 125,000 yen.

The downside remained solid, and there was hardly any sign of a downtrend. This is quite strong.

Bitcoin market on January 5, 2017 (chart time: 1h)

And as I was editing the image from the 4th, high prices kept updating to 130,000 yen, 140,000 yen, and finally reached 150,000 yen!

Once it reaches such levels, it becomes an unknown territory… I can’t predict it at all. It seems to continue hitting new highs as before. If it continues to move outside the Bollinger Bands, a contrarian short could profit, but the buying pressure is so strong you can’t sell carelessly.

And then, the moment of fate arrived.

A massive crash!

Aaaaaahhhhhhhhhh!

From 152,140 yen to 89,712 yen, a true crash of -62,428 yen!

And amid all that, I made these trades.

Position: 1 BTC: average 125,090 yen S → 122,000 yen C
Profit: 3,091 yen

Additionally.

Position: 1.1 BTC: average 120,138 yen S → 119,000 yen C
Profit: 1,252 yen

And then.

Position: 1.1 BTC: average 104,261 yen L → 105,608 yen C
Profit: 1,481 yen

It was a very risky trade, but I made money.

Heart racing! Even between orders and the moment I decided whether it would go down or up, prices moved in 1,000–3,000 yen ranges. Bitflyer’s Lightning also slowed, causing longer order-fill times. A lesson from the crash.

Free summary: Crashes will happen

Even Bitcoin can crash like this. Actually, given the long uptrend, I’m a little relieved.

As a column, it might have been better to end with “Be careful with Bitcoin margin trading after a crash.” Well, I ended up making money…

Still, volatility was expected in this kind of currency, and BTCFX is a margin trade. You can profit from both buying and selling.

However, in such cases, trading tools can become slow or even fail to connect. Remember to set stop orders, etc.

So, now it begins! After this crash, how will Bitcoin move? 2017 starts with great chaos, but let’s trade calmly!

Endnote: Shopping with Bitcoin

Actually, on the overseas e-commerce site “FANCY,” you can buy goods with Bitcoin! It costs a bit for shipping, but there are stylish items you won’t see in Japan!

Please refer to this blog for how to use FANCY.

→FANCY (Fancy): Account creation, registration, settings, and workflow for purchasing items explained! | Investor Jun of the Yutori generation
→How to purchase items from FANCY with Bitcoin (payment) | Investor Jun of the Yutori generation

Note: The free content ends here. The rest is detailed analysis and future outlook, so it is paid content. If you’re interested, please subscribe!