Thanks for answers guys. I guess there’s not a whole load of TA to go on right now as we are in price discovery for BTC market. Fibonacci is still a good indicator I suppose as so many people are trading off it, it becomes self-fulfilling etc. I also tend to use the VPVR indicator for identifying key support/resistance as well. Anyone else use this? Very useful imo

Hi,

I’m just wondering what are the best indicators / candlestick patterns / charting TA to look for when a support bounce occurs after a significant dip.

I was in short positions on both Sunday and Monday during the big BTC correction and obviously there were points where they were significantly in profit. However, I held on too long and closed after the bounce. I still took profit but feel I could’ve “taken the meat of the trade” a lot better.

What do you guys look for? I guessing this is perhaps best done using the 1m (or similar short timeframe) and looking for a big green bottom wick with large incoming volume or something?

Thanks
 

This makes sense. Like one of the pros of having such good cryptography brings the con of it being hard to develop coin ID technology based on an address. I hope in time something can be developed though. Not only is it prone to human error, but it's also time consuming to be manually checking addresses if you're frequently sending crypto.

A little while ago I was very tired, multi-tasking and finally made the dreaded mistake of sending some USDT to a BTC address. Fortunately it was only a small amount and the exchange was able to retrieve it, but it got me thinking...

Would it be possible to develop some kind of address validation technology that runs a check and doesn't physically allow you to send crypto to a different coin address?

Coinbase Pro have attempted to implement something like this but after running a test it still seems to give the green light for a PAXG deposit address when sending USDC. I imagine this is because they're both ERC20 tokens.

I messaged another exchange and they said it would be hard to implement because many coins don't have coin specific addresses.

I feel like this is such an essential thing to have in the crypto space if it's to ever have a serious chance at mass adoption. The fact that this easy mistake can be so calamitous and with no customer support because... well its crypto, seems like a fundamental flaw.

I've been sending crypto around for 6 years and I'm still just triple checking the first and last 4 characters of an address. Then until it's shows up at the deposit end I still have a slight fear that I might've made a mistake, as I'm sure many can relate.

Surely in this day and age of the crypto scene it is nonsensical that something as basic as sending crypto is still subject to manual checks and easy irreversible human error.

Is it possible to develop something like this or is there an existing technology I don't know about?

.

Yes, well all I'm trying to do is tweak DCA a bit more in my favour. I'm very much of the "stack sats and chill" philosophy, aka just buying whatever amount at whatever price whenever you can and chill because BTC's gonna moon eventually and they'll all be "winners". Obviously this runs on the foundational belief that BTC is not a "dead market" long term and therefore no need to pay much attention to the charts. Basically I'm just trying to see if theres a way to get statistically superior buy-in prices for long term HODL using TA.

Yes, of course all TA is speculative and a fugazi (https://www.youtube.com/watch?v=hAQA_29Htts) lol. But don't you think if the price was to move past an 'open-low %' MA line on the weekly and/or monthly timeframes it would be a good indicator of a dip? It would be saying 'this price movement is more negative than average for this period of time'. If you had alerts on both it could tell you 'this price movement is more negative than an average week within a more negative than average month". Yes the market could continue to fall (just like any other moment) but at least you'd be making a better than average call for that timeframe...

Yes, I very much believe DCA is the best way to take emotion out of weather you're buying at the absolute "best" price as such.

Surely you must have at least some small criteria rather than "purchasing when the price drops no matter by how much or what criteria it is". I mean BTC drops 10% maybe once or twice a month, where as it drops 1% (from open) pretty much every other day. Do you just mean you look to go in on these frequent smaller corrections (~10%) that happen quickly?

Apologies if this comes up a lot (as I'm sure it does) but when / how often do you feel is best to buy the dip?

I know its not an exact science but I've heard a few different preferences on this such as:

- When the price decreases x% on the weekly/monthly candle
- When the price moves below the weekly/monthly negative average
- Only a couple of times a year after a major correction
- Just look at the chart and go on your experience / gut

Ah ok, this information may have helped solve an ongoing mystery with my bot! Basically I've been getting consistent API latency issues with a 00:00UTC trade but not with any others. Automated orders were taking up to 10s for this one, compared to <1s for all others. I couldn't work it out. I'm now guessing that theres a load of traffic as everyone rushes to close positions before funding, or deploy strategies based on the predictable price movement you mentioned. Thanks.


Do you mean if theres a strong trend in your favour then it might be worth paying the funding premium to stay in?

With one of my automated strategies, a position gets closed at the exact same time as one of the three daily fundings occur (+00:00UTC Binance Futures).

The Binance docs on funding say "In general, traders prefer platforms that provide the lowest funding rate as it can have a significant impact on profits and losses."

So does this imply that traders should look to avoid paying funding wherever possible?

I know it might seem like a silly question, but my transaction history shows that its pretty 50/50 as to weather funding is charged positive or negative. I'm wondering if long-term it might just work out fairly balanced anyway?

Otherwise, of course I would aim to implement something that closes the position a few seconds before 00:00UTC to narrowly avoid the funding fee.

I should say I'm fairly new to futures/derivatives and am getting to grips with it using a tiny balance and 1x leverage (basically I'm aware of the risks before anyone points them out).

Are the fees really a big factor? I'd buy at Coinbase which has a 0.5% taker/maker fee (cheeky as it used to be 0.3% taker, 0% maker). I thought that these fees would be insignificant compared to the % gains btc is widely expected to make over the next couple of years proceeding the upcoming the halving...

Thanks very much everyone for your replies, I understand the difference now.

It certainly seems to make sense to be part HODL'er part swing trader in blatant bull/bear markets.

My only concern with trading in the near future is the PlusToken scammers. Don't they still have loads of btc/alts that they're randomly going to keep dumping, thus significantly messing with price action?

I'm fairly new to this space and I'm quite keen on the "stack sats and chill" DCA approach as opposed to trading as I believe in btc long term. I mean I just want to add to my btc holdings whenever I can at whatever price and don't care much for short term price movement, no matter how drastic. Do many of you follow this approach or are you mostly traders?

Another question- When people preach HODL philosophy (obviously I know it means hold) is this the same "stack sats and chill"... or are the HODL'ers just those that invested big at some point in the past and are long-term holding a single position?

Yes, I'm not new to trading. Getting stuck in a trade (or having to close at a really bad price) due to insufficient liquidity is a pair/instrument specific problem. I'm trying to research this in order to develop a bot. I have some rough ideas but would like some more experienced traders than myself to weigh in with some exact parameters / rules of thumb...

Hi, sorry if this is a blatant repeat but I'm after some up to date info on this topic.

What are some of the red flags you'd look out for when aiming to avoid trades you could potentially get stuck in on the Binance USDT market?

A specific minimum 24h volume on that coin i.e. $100k? Basically how much liquidity do you look for to feel confident...

Are there coins that are notoriously tricky to trade for other reasons perhaps?

I'd appreciate any tips on this. Thanks.

Yes, its always so hard to tell with btc but it does seem that the mania has settled a bit for now.

However, there seems to be a lot of speculation that the drop was related to people cashing out due to the Christmas period. If this is true then I also wonder if this will have an effect on btc price in January as people are often left with big credit card bills after Christmas and they might need to cash out to pay these...

Thanks. I changed it to 12.7k. Hopefully the order will get filled in the next week or so.

Basically I'm just looking to buy Profit Trailer for 0.03btc before the end of the month as they're offering a free extra Binance licence until then. I'm not really fussed about making fiat profit off btc etc but rather I'd just like to avoid having to put more fiat into btc to make the purchase.

I suppose I could trade alts against btc but I can't really be bothered to do all that over the holidays. It'd be much easier if btc could just have another quick dip!

So are you saying a support bounce generally signifies the end of a btc correction?

Do you think we're going to see another dip to ~10k before the end of the year or do you think btc is now in recovery from the correction?

Like many people right now, I'm looking to buy btc at the lowest possible price because I believe a strong recovery is imminent.

There have been two flash dips to 10k in the last 24h, unfortunately I missed both. I've now set a buy order at 10k but btc now looks to be making a bit of a recovery so do you think this buy order is too optimistic?

I've noticed the lowest its dipped is basically exact the same point as where the crazy bull run started earlier this month so perhaps its in early stages of recovery now and I should just buy at current 14.6k?