Opinions
Crypto Talk with Terence
Bitcoin (BTCUSD)
CRYPTO:BTC
BUY
Apr 02, 2022
$46196.600
Stock price when the opinion was issued
Cryptocurrencies
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
COMMENT
Educational Segment. Should you include crypto in your portfolio? Called Bitcoin a Ponzi scheme last week. Was incorrect, it doesn't fit the definition of a Ponzi scheme but gets boosted the more people get involved in it. The difference with stocks is that we cannot value crypto based on real principles. It is valued based on its scarcity (there is a limited amount of Bitcoins). You want to add something to your portfolio that has uncorrelated returns. Historically, correlation between Bitcoin and stock market was low. Since Covid, correlation has increased. Low correlation of Bitcoin comes at the cost of huge volatility. These are the points to keep in mind when deciding to include crypto in your portfolio.
Cryptocurrencies
PARTIAL BUY
Advertising
CRYPTO UPDATE
The triangle we spotted on Bitcoin was very effective and broke its resistance with a nice candlestick that made it take almost 6% in one day.
The take profit target is still located at $56,000, close to an important supply area (many sell orders pending in the order book). The price is currently operating a pull back on the resistance zone it broke recently, this is perfectly normal and occurs in about 60% of cases (Chartist analysis, by Francois Barron), this could also be a very good entry for investors who missed the low of the triangle and its breakout (we can also wait for the breakout of the last high.
Investors who took position at the low or middle of the triangle currently have a nice profit (+20-10% at the time of writing, +30-20% at the high), and can expect much more, if the pattern materializes until the end. The most sensitive (and they are right) to money management have already moved their stop loss beyond their entry point, and can no longer, regardless of future developments, lose money.
It is interesting to note the high correlation between Bitcoin and other cryptos. Indeed, since the break of the triangle on Bitcoin, the main other cryptos have all experienced interesting gains this week, including Ethereum (which also broke a triangle from above), and Solana (+60% for a week). The case of Solana is very interesting because we had two chartist figures, a triangle and a triple bottom that led to this rise of 60% in 1 week and 80% since March 11.
Although probabilistic, chartist analysis remains an extremely powerful tool to evolve with more confidence in the chaotic financial markets, no matter what the detractors say, provided of course to retain this elementary but crucial rule that is missing to 90% of investors, and allowing to extend its life (in the financial markets) on the long term: to have a perfect control of its money management.