Good Morning, Bitcoin Breakout and Trading Updates

Good morning, everyone. It is Thursday, the 23rd of November 2023. My name is Doug from Digital Currency Traders.

In today's episode, we got a load of things to go through, so let's just jump right into it. Let's go into the news we've been watching. First of all, there's some news here about Bitcoin that actually made me stop and go, what?

Addresses were missing from mined blocks. I just totally thought that wasn't possible. So, these are transactions that were intentionally filtered. I, hey, I don't know.

Then, Tether issued an additional $1 billion on the Tron Network. That's pretty cool. Is this stuff open source? Can I just like print a billion dollars? I don't know.

➦And an exchange was suspected that they've got a rug pull, and you know, I'll bet you that an exchange that recently contacted me is going to be the next one to do this rug pull. 

➥And I've got a special video on that one coming up. I really got to focus on it and make it a good one.

Anyway, let's go on to the next one.

Sponsor Spotlight and BitGet Copy Trading

I want to talk about the sponsor for today's channel, and that is BitGet. I'm going to talk about BitGet copy trading, where it's pretty fantastic what you can set up and do here. But I want to talk about what am I doing with the copy trading.

I did some studies about the copy trading over on BitGet a while ago.

I did a post here a month ago, and I went into detail about the top traders who are doing spot trading, I do believe. And I drilled down into their performance for the last 6 months, and you can see here that's a pretty steady kind of data that we get from all of these different guys that I reviewed.

Analyzing Trader Performance and Strategies

And that is, we can see that most of the trades lasted for 5 days, 10 days, 20 days, 40 days, 80 days. And yet they all made $2, $4. The highest earning trade over that period of time in 6 months was $8. So even though he's profitable overall, I don't like that. What do we call that again? It's the distribution of returns. We'll talk about that again in a second. Let's go down, and we'll see another one here where we've got $2, $3, and the highest trade made $7. And they held that for 10 days. We got 80 days and only made $2. So you can set up copy trading, and you can find these guys.

I'm just looking at spot copy trading right now, and let's look at the top number one guy.

We'll bring up his data, and as I bring up the data, I want to have it loaded up for 6 months so that we can see what has been happening over a long period of time. And see what he's been trading, and what kind of wins and losses has he been putting through for the exchange.

So again, well, we got some much better trades here.

Position duration and profit. So this one made $1,000 on that trade, held it for 7 days. That's fantastic. This is another one where he's made some actually some better trade profits off of this. Another aspect that I like is that most of the losing trades are very much smaller than the winning trades here.

So we can see there's a streak, and if we go back and we take a look at the chart of that coin, we could get an idea of what he's actually doing in trading this specific market.

So if you want to diversify your copy trading, you can just do a little bit to copy each of these different traders that you look into, and you get some real good background to it. And so I would have to say that just in my initial research here, looking at this new account, he's doing a better job than the accounts that I researched a month ago. So going through these would really be good for finding some guys to just follow and copy trade.

And now, for me to start doing the copy trading on here, I have to give up on an experiment that I started some time ago. And I did a blog post about this, about how I made $352 US for free. I explained that I set up a referral link for BitG, get I put it into our Discord community.

Investment Strategies and Cryptocurrency Trading

And then what I did with that money is I bought into BAKE USDT. So, I bought in that $352 worth of coin, and I just put it all into BAKE so that I didn't have to do anything with it. I'm not following my trading plan; I'm not looking for that distribution of returns by trading this way.

Right now, my trade went in there at $352, now it's up to $555.

So, I've made 57% profit on that trade already.

Do I want to give up this experiment?

Well, the point of my trading is so that my money does the work while I'm doing something else. Since this trade is already profitable, because I believe this trade is going to be doing some very much bigger gains, then it's not my job to do anything with this trade. It's been proven correct, and it's my job to just leave it alone until it hits some of my exit signals.

Now, the only reason I would go back and set up my copy trading is so that I'm convincing you about our trading system.

I say fuck that.

It's up to you to do that work and convince yourself that this trading system works. So, now let's jump into the next part of the video.

Whale Feeding Zone Analysis

Of Whale Feeding Zone, we're looking at the 12-hour bands. First of all, let's move those up into place so we're tracking how they change from day to day. Then, let's look at the 4-hour bands to see where they are, and then into the 1-hour bands. Now they're pinching down again.

As I zoom back out to the 12-hour, I am still bullish, and yet those three touches of death up along the top keep me really, really nervous right now at that this could have a big spike back.

From this pattern, and just before I go into the alt season section of the video and the money-making section of the video, let's go and look at the Relative Strength Index. We can see that our trading system is still in full hold status, and if I move into the 4-hour time frame, it's close but it would be moving us only into partial hold status if it came back.

Bitcoin RSI

What I want to reflect on here is the position of the Relative Strength Index. This looks like a bearish divergence, and it could be, and yet it's also the potential springboard for a continuation of the bullish move as we have seen many times here throughout the bullish buildup.

Bitcoin's Breakout Potential

That we have this springboard setting up in the RSI just before the next build and just before the next breakout higher. And to my thinking, if we are about to break out higher, that would be really consistent with a continuation flag.

And from this continuation flag, we should see something pretty spectacular. And if we do see a big spectacular move up in Bitcoin, what's going to happen with Bitcoin dominance?

This is the big thing right now because this is where the altcoins are going to really stand out. This is where the longtail distribution of returns is going to really make us rich off of this. If we take a look at the altseason co-pilot, we can see by our chart here that we have already filtered out which are the coins that are in partial hold status.

They've made a wave up and they've pulled back a little bit but they've held their bottoms. And this becomes super important when we consider the longtail distribution of returns.

Cryptocurrency Trading and Longtail Distribution

When we look at cryptocurrency trading, Alex Hormozi explained it so perfectly in his recent video. If I wanted to become a millionaire in 2024, this is what he would do with his full blueprint.

Super important video for you to go and watch because it teaches a concept that the altseason co-pilot doesn't actually show here. And it's kind of intentional. This data is only to show you the bullishness and bearishness of the market. It doesn't do the trading for you. However, we do have some of that data.

Altcoin Signals Log

We can see here that I started taking that data here in 2021, and I did 5,000 trades over the period of a year, and of two years or thereabouts. And I finished here in March of 2023, where I just shut it down.

But the bonus that we have now is that when we look back through Bitcoin dominance, we can see that I have the data from this period of time through this period of time through this period of time and another bull wave through this period of time.

Where we can go through and we can track out the data on the longtail distribution of returns from all of our spreadsheet data. So that we can take all of the trades and we can get that data to show just how important it is to have your feet in the right place.

Summary and Conclusion

And what did we cover in today's video? We covered where to go and do copy trading and how to research what a good copy trading account could be.

We covered the fact that Bitcoin looks like it's going to stand up and go straight to the Moon from here.

And we also covered the question of altcoin season and how to use the longtail distribution of returns to your advantage right now so that you can make the most out of your cryptocurrency trading this year.

Trade safe and keep those losses small.