Copy Trading Master’s Winning Strategies Review — Episode 42
Easy Follow, Smart Trade! Discover the winning strategies of our popular traders.
- Copy Trading Master’s Introduction
User Nickname: BlingBling~
Trader’s Profile: https://www.lbank.com/copy-trading/lead-trader?id=LBA3D77565
Trading Style: Swing Trading
2. Trade Operation Recap
Short ETCUSDT with 20x leverage on cross mode, opening at 32.593 USDT, closing at 30.95 USDT, achieving a profit of +100.83%. As shown below:
3. Trade Review
3.1 Market Background
On May 10th, the U.S. Bureau of Labor Statistics reported that the April CPI rose 4.9% year-over-year, marking the tenth consecutive decline and the smallest year-over-year increase since April 2021, below the expected 5%. The month-on-month CPI rose by 0.4%, in line with expectations and higher than the previous value of 0.1%.
On May 20th, the SEC urged exchanges to expedite their 19b-4 filings. Bloomberg ETF analysts Eric Balchunas and James Seyffart raised the probability of approval for a spot Ethereum ETF from 25% to 75% following rumors, later clarifying that the 75% referred to the approval probability of the 19b-4 filings.
Subsequently, Bloomberg Intelligence ETF analyst Eric Balchunas emphasized that the 75% probability was specifically for the 19b-4 approval by May 23 (VanEck’s deadline). The filing entity would still need S-1 approval, and it might take several weeks to months for the S-1 approval and the actual listing of the Ethereum ETF.
On May 24th, the SEC approved several 19b-4 forms for Ethereum spot ETFs from issuers including BlackRock, Fidelity, and Grayscale. While these forms were approved, ETF issuers had to wait for their S-1 registration statements to become effective before they could begin trading. The SEC had just begun discussions with issuers regarding the S-1 forms.
Following weaker-than-expected U.S. April employment and core CPI data earlier in the month, which led to a significant rally in U.S. securities and a strong performance in the cryptocurrency market, the approval of multiple Ethereum spot ETF 19b-4 forms by the SEC resulted in a significant one-day surge for ETH, and the cryptocurrency market as a whole showed strong performance.
3.2 Trade Analysis
From May 20th to May 28th, the Bitcoin hourly chart showed high-level oscillations and declines. See image below:
On May 10th, data from the U.S. Bureau of Labor Statistics indicated that the April CPI increased by 4.9% year-over-year, lower than expected. The core CPI showed signs of slowing, leading traders to further decrease their bets on a rate hike in June. Subsequently, the cryptocurrency market began an overall oscillating uptrend.
On May 20th, the SEC urged exchanges to expedite their 19b-4 filings. Following rumors, Bloomberg ETF analysts Eric Balchunas and James Seyffart increased the probability of approval for a spot Ethereum ETF from 25% to 75%. Following this, Ethereum surged 20% in a single day.
On the 4-hour chart, ETC had been oscillating between $24 and $28 for over a month. On May 21st, the price began to rise from $28, reaching a $34 high. The $32 to $35 range was a significant previous resistance area, and despite repeated attempts, ETC was unable to break through higher. Considering the patterns on smaller timeframes, a swing short position was contemplated. See image below:
On the 1-hour chart, ETC capitalized on the positive news of the Ethereum ETF, surging to a high of $34. After some sideways movement, it began to oscillate and decline, with prices fluctuating between $31.6 and $32.7.
On May 27th, ETC reached the upper edge of a box pattern, at which point a short position was opened. The price showed disorderly fluctuations but did not trigger a stop-loss. The following day, as BTC experienced a significant drop, ETC also quickly fell below the lower edge of the box, breaking downward. When BTC stabilized, the short position in ETC was closed. See image below:
3.3 Winning Strategies Summary
The success rate of market predictions is closely related to market alignment; the higher the alignment, the higher the success rate. Whether it’s unexpected positive news or technical indicators signaling high and low points, it is essential to wait for the market’s reaction.
Markets have periods of strength and weakness. During strong periods, it’s important to trade more, and during weak periods, trade less. When predicting and choosing directions, it’s crucial to use market sentiment and price movements to overcome subjective judgments.
Click here to download for iOS or Android
Website: https://www.lbank.com/
Twitter: https://twitter.com/LBank_Exchange
Facebook: https://www.facebook.com/LBank.info/
YouTube: https://www.youtube.com/c/LBankExchange
Telegram: https://t.me/LBank_en
LinkedIn: https://www.linkedin.com/company/lbank
Medium: https://medium.com/LBank
Reddit: https://www.reddit.com/r/LBank2021/
