Week 23, Trade 23 : LONG $BTC, $SOL, $FARTCOIN, $AI16Z, $VIRTUALS
📈 Week 23, Lesson 23
“Being wrong and not taking the loss – that is what does the damage to your pocketbook and to your soul.” – Richard Dennis
We are into Week 23 of the Fifty Two Trades in Fifty Two Weeks. Thank you for reading.
“The 52” deep dives into one trade every week, targeting traders with zero or little trading experience. But I hope that my pro trader friends find this as useful. For details on why I am doing this and who is this for, please read the About section on top, which I will update from time to time.
Most trades that we take will be medium (3-4 weeks) to long term in nature. We might do some swing trading here and there if opportunity presents, but always with proper risk management. After all, our purpose is to make money, not lose sleep over it.
You can track our trades and progress live here at this Link
Over 10 years in banking and now 12+ years dealing with nuances of crypto, I have learned some very hard lessons. I intend to share them transparently as we go. More importantly, please keep the comments and feedback coming, so I know we are on the right track together.
📊 Portfolio Update - Open Trades
We continue to navigate the market cautiously, balancing between risk and reward. Stay tuned for more updates as we adjust our positions based on market conditions.
We’ll continue to monitor the open positions closely and adjust as needed to navigate the range-bound market effectively. Stay connected on Telegram for real-time updates and insights.
If you have any questions, ideas, or feedback, please feel free to DM me on Substack or Twitter, Let's continue to navigate the market together!
DOLLAR COST AVERAGING (DCA): THRIVING IN A FALLING MARKET
Falling markets can be intimidating, but they offer excellent opportunities for patient and strategic traders. Rather than fearing declines, use them as a chance to identify high-quality assets at discounted prices. Short-term trades on relief rallies and hedging through options or futures can help offset losses while positioning for eventual market recovery.
DCA is a powerful strategy in downturns. By spreading out investments in fundamentally strong assets like Bitcoin or blue-chip stocks, you can build long-term positions while minimizing the risk of poor timing. Pair this with yield-generating options like staking or dividend-paying assets to maintain cash flow while you wait for the market to bounce back.
Discipline and risk management are crucial when trading in bearish conditions. Avoid overtrading, stick to predetermined stop-losses, and maintain sufficient liquidity for new opportunities. Bear markets are temporary, but they reward traders who stay calm, strategic, and ready to act when the trend reverses.
🌎 Quick Macro & Crypto TL;DR
THE GOOD:
Trump on War: Trump says Hamas & Israel shake hands, declares end of War
China's Stimulus Potential: Liquidity injections may stabilize global markets.
THE BAD:
Sticky Inflation: Limits central banks' ability to cut rates.
Yield Pressure: Rising bond yields drain liquidity and hinder risk assets.
Geopolitical Jitters: Trade tariffs and policy shifts increase unpredictability.
THE UGLY:
Debt Vulnerabilities: Rising borrowing costs pressure consumers and corporations.
Global Weakness: Fragile economies like the UK & Canada hints at broader instability.
For more regular insights into macro and crypto trends, subscribe to our weekly newsletter: 5-Minute Macro and Crypto Weekly.
📈 Week 23, Trade 23 : LONG $BTC, $SOL & $FARTCOIN, $AI16Z & $VIRTUALS
As highlighted in last week’s newsletter, the macroeconomic environment continues to suggest the potential for a substantial market rally. But recent events like the US Government receiving green light to sell Bitcoins worth $6.5 Billion (Silk Road) and Trump giving statements which created a sense of fear among retail investors caused hawkish sentiment in the market.
The recent pullback presented attractive opportunities, offering some excellent entry points as prices approached our predetermined levels in our watchlist.
This week, we made strategic moves, capitalising on several opportunities from our carefully curated watchlist. Below, you’ll find a detailed breakdown of the latest trades and how they align with our overall strategy:
TRADE 1: LONG $BTC
Bitcoin's recent pullback provided an ideal opportunity to initiate a long position as it briefly dipped below $95,000.
Entry Price: $92,570
Stop Loss: $85,000
Take Profit 1: $120,000
Take Profit 2: $130,000
Currently trading at $99,180, $BTC has started recovering, and we expect bullish momentum to build as it approaches the psychological barrier of $100,000.
TRADE 2: LONG $SOL
Solana touched our buy zone after consolidating at a key support level, making it a high-conviction entry. We initiated our position as follows:
Entry Price: $182
Stop Loss: $160
Take Profit 1: $250
Take Profit 2: $280
Trading around $209, SOL has shown resilience amid market fluctuations. With strong technical indicators and ecosystem growth, we anticipate further upward momentum in the coming weeks.
TRADE 3: LONG $FARTCOIN
Despite its playful name, $FARTCOIN has demonstrated potential through high trading volumes and community activity. The recent dip offered an attractive entry point:
Entry Price: $0.81
Stop Loss: $0.60
Take Profit 1: $2.00
Take Profit 2: $2.50
Currently trading around $1.22, $FARTCOIN appears to make a recent bottom, driven by strong community interest & AI narrative..
TRADE 4: LONG $AI16Z
$AI16Z’s growing utility and integration in AI-focused ecosystems make it a promising play. A sharp pullback to our buy zone allowed us to establish a position as follows:
Entry Price: $1.13
Stop Loss: $0.75
Take Profit: $2.50
With $AI16Z trading around $1.42, we’re seeing early signs of accumulation. As adoption grows, we anticipate this asset will perform strongly in the near term.
TRADE 5: LONG $VIRTUALS
$VIRTUALS has been witnessing a free fall but it has a strong community and good user base, making it a fundamental buy. As it was testing a crucial support zone, we entered as follows:
Entry Price: $2.55
Stop Loss: $2.00
Take Profit: $6.50
Trading at $3.59, $VIRTUALS is showing promising momentum, with a potential run-up on the horizon. With strong fundamentals, this token remains a high-conviction play.
💡 CONCLUSION
In this week’s trade recap, we’ve focused on high-conviction assets across Majors and AI sector, capitalizing on pullbacks and key support levels.
Trade Highlights:
Long $BTC Spot: Entered at $92,570, targeting $120,000 and $130,000.
Long $SOL Spot: Entry at $182, with take-profit levels set at $250 and $280.
Long $FARTCOIN Spot: Entered at $0.81, aiming for $2.00 and $2.50
Long $AI16Z Spot: A solid buy at $1.13, targeting $2.50 amid bullish AI sector momentum.
Long $VIRTUALS Spot: Positioned at $2.55, looking for a new all time high to $6.50 backed by strong fundamentals.
We’re closely monitoring all these positions and are optimistic about the upside potential they offer.
Stay tuned for more updates and insights! You can track all our trades here.
Now go grab a coffee and please DM for any questions. Keep in mind, this is NFA and DYOR.
My 2025 Crypto Plan - Lessons, Positions and Sizing
January edition, updated as we go…
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