TheRealPeaches
Long

Cryptocurrency Musings: Making A Break?

BITFINEX:ETHUSD   Ethereum / U.S. Dollar
The BTCUSD             has been incredibly choppy, with no trend to speak of for the past few days. However, a glance at ETHUSD             , LTCUSD             and XRPUSD tells a different story. The major cryptocurrencies are flagging and seem to be in the process of carving a base. Adding to this notion, is the fact that ETHBTC is at very significant support. This adds directional bias to the long side.

As I write, ETHUSD             is breaking short-term resistance. Even in BTCUSD             , support is holding, yet the picture is less clear.

Fundamentally, I favor Bitcoin             over all other cryptos.Yet, the setups are cleaner in ETH, LTC, and XRP.

Sentiment-wise, the paradox is that while the sector is in a cyclical bear market, those hoping for lower prices overwhelmingly expect to be able to 'fill their bags' at bargain prices. Alas, I remind my crypto trader friends of the great Silver             bull market of 2009-2011, and subsequent bear market. I can clearly remember traders begging for silver             under $20 at $40, boldly proclaiming they would 'load the truck'. Yet, today XAGUSD             trades under $15, and Silver             has lost it's sheen. The market does not reward the expectations of the majority. Thus, crypto may punish those expecting lower prices with a relief rally.

I'm currently long ETHUSD             , with a target of the 400 area. To be clear, this is tactical trading. I will exit any break of near-term support, and will consider this just a pit-stop before lower prices.



Comment: The crypto space has suffered a harsh rejection in the past 48 hours. I exited my long positions in ETHUSD after I saw little reaction, compared to Bitcoin's recent run up. I'm currently neutral, waiting to see what the market does. ETH's decisive move down favors short entries, while Bitcoin is still in a neutral position. I see no set-ups in any of the major cryptocurrencies for now. I'm erring short, but I'm cautious to commit capital at this time.
EN English (UK)
EN English
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out