[Trading Journal] Bitcoin Short Position Review: The Textbook Example of Confluence Trading and Profit Taking

-

Hi! This is WBT from the Chartinfo team.

In my last Nasdaq trading journal, I reviewed a painful stop-loss caused by a subjective counter-trend trade. This time, learning from that mistake, I’ll review a Bitcoin (BTC) short position from May 6, 2026, where I successfully made a profit based on strictly objective "confluence."



Precise Entry: Reasons for the $82,285 Short Position

The key to this trade was finding a strong Confluence Zone where multiple technical indicators overlapped. Here are the three main reasons why I entered a short position at $82,285.

  1. Resistance at the top of the ascending channel Although Bitcoin broke through the $80,000 line with strong momentum, I was confident it would be difficult to overshoot past the top of the channel in one go. The upper resistance line of the channel I drew pointed exactly to $82,285.38.

  2. Long-term trendline resistance connecting previous highs Beyond just the channel, a descending trendline connecting the major swing highs of April 17 and April 22 was also acting as resistance in this area.

  3. Oversold signal on Tether Dominance (USDT.D) When the price broke $82,000, Tether Dominance dropped to around 7%. This indicated a short-term "bottom" where stablecoins were depleted in the market as funds rushed into Bitcoin. I anticipated that smart money and market participants would soon start taking profits on BTC, causing Tether Dominance to bounce back.


Limitations of Prop Capital and Perfect Take Profit at $79,790.52

Even though it was a perfect short entry backed by several reasons, there was one regret.

Since my current prop trading account's initial capital was limited to $500, I could only enter with the minimum size of 0.01 lot. Because the position size was small, I couldn't use partial closures to follow the trend. Therefore, as a matter of risk management, I closed the entire position when it reached $79,790.52—the Fibonacci 0.382 retracement level of the previous move—securing a profit of $24.95.


Lessons Learned and Account Growth

With the $24.95 profit from this trade, I completely recovered the painful Nasdaq loss from my previous session. As a result, my prop account balance is now trending upward at $514.29.

The biggest takeaway was reaffirming the importance of patience—waiting for those "overlapping confluence spots" rather than blindly trusting a single indicator. Although I missed out on more profit due to the small capital size preventing partial exits, it was an excellent trade that stuck to the rules.

The Chartinfo team will continue to respond to the market with objective and sharp chart analysis, leaving emotions aside. If you want successful trading, feel free to join us anytime!

Stop Leaving Money on the Table – Get 90% rebate

Chartinfo - CFD Rebate provider

Every trade you make without a rebate is a missed profit. Chartinfo is a trusted CFD rebate provider dedicated to maximizing your returns through seamless cashback solutions. Click here to visit our website and start earning today!

Comments

Post a Comment

Popular posts from this blog

How to Get a 90% Forex Rebate (Save Thousands on Trading Fees Legally)

-
Image
Hi, we are CHARTINFO , your trusted partner for safe and sustainable trading. If you are an active day trader, you already know that trading costs—specifically spreads and commissions—can quietly eat up a massive chunk of your profits. Many traders focus solely on finding the perfect trading strategy, completely ignoring how much money they are throwing away on transaction fees every single day. But what if you could get 90% of those trading fees back into your account every week, completely legally and safely? Today, we will show you how to set up a high-paying, verified Forex rebate program that significantly lowers your trading costs and boosts your bottom line. Why Most Traders Lose Money to Fees (and the Self-Referral Trap) Every time you open and close a position, your broker charges a fee. Over weeks and months, these micro-costs accumulate into thousands of dollars. In an attempt to save money, some traders try "self-referral" (creating a second account under their o...
Read more

[CHARTINFO] Top 5 Verified Brokers & 90% Rebate

-
Image
Welcome to CHARTINFO , your trusted partner in the global financial markets. Our team consists of professional traders who have directly experienced and verified numerous platforms. We know that choosing a broker is the first step toward successful trading. That's why we have meticulously selected only 5 brokers for our official partnerships. This guide presents the results of our firsthand testing and, to maximize your profitability, we provide an exclusive 90% Rebate program. [ Detailed Broker Reviews ] 1. AVATRADE CHARTINFO’s Verification: When we tested AvaTrade, the first thing that struck us was its incredible regulatory stability. With multiple licenses across Europe, Australia, and other global regions, it is the safest place to deposit your capital. We found their fixed spread accounts to be surprisingly effective for managing trading costs during high volatility events. - Key Features ＊ Strong global regulation (CBI, ASIC, FSCA, etc.) for ultimate funds security. ＊ Off...
Read more

Understanding Brokers: Why You Need One and the Pros & Cons

-
Image
Hello, everyone.  This is CHARTINFO . I am here to help you navigate the complexities of trading by simplifying essential concepts. Today, we will discuss the role of brokers in the financial markets. Why Use a Broker? In the trading world, a broker acts as an intermediary between an individual trader and the financial markets (like the Stock Exchange or the Forex market). Individual traders cannot directly execute trades on these exchanges; therefore, a broker provides the necessary platform and infrastructure to place your orders. - Pros and Cons of Using a Broker  👍 Pros Market Access & Execution They provide real-time access to global markets and execute trades instantly. Leverage Most brokers offer leverage, allowing traders to control larger positions with a smaller amount of capital. Trading Tools They offer advanced charting software, technical indicators, and educational resources. 👎 Cons Trading Fees (Spreads/Commissions) Brokers earn money through spreads or c...
Read more