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Everything posted by TrendFollower

  1. From what I am reading this morning via online media it seems the so called Crypto experts have come out and started giving price targets of $5200, $6000, etc. There is a strong possibility of another Crypto frenzy and FOMO taking place. This could drive up prices presenting a large disconnect to the fundamentals. In the back of my mind, I have the 'large sell off' thought appearing. This is likely to happen but the key for me will be whether Bitcoin can stay above the $4200 level or not. This to me will determine whether this is a false breakout originating from thin air and speculative capital or whether it can consolidate strongly at around the $4200 level before any continuation of the trend upwards. Right now it is all about taking advantage of this price action and using leverage to maximise any returns. It will be just as important to exit with a profit than to be left with a loss or be a latecomer to the party when others are leaving.
  2. Bitcoin Cash is again the best performing Crypto available on IG’s platform. I am not sure if the Japan news I posted yesterday is playing a big part in this? It seem on the face of it that it could well be. Also it is more attractive a trade from a margin requirement for those who have have to stump up far more capital for trading Bitcoin.
  3. @elle, Your charts have been bang on the money so far and has influenced a change of thought for me. You called the pattern we have witnessed a while back so well done for that. I actually followed your charts on US indices and though I could not see it at the time (hindsight is a wonderful thing) I can see your thought process better now. I think from memory you posted a chart of how the Dow has behaved previously on such large drops during this long term bull market in US stocks. Past behaviour can not guarantee future price behaviour but this pattern has played out like you envisaged.
  4. @DanielaIG, I noticed you did not mention Bitcoin Cash and Litecoin ahead of Ether and Ripple? Both Bitcoin Cash and Litecoin have performed far better than Bitcoin, Ether and especially Ripple over the past few days, weeks and months. Was there any specific reason for this?
  5. What we may begin to see is what I regularly describe as an 'amplified' move upwards due to stop losses being triggered on shorts. If you go back to when Bitcoin futures were introduced, shorting Bitcoin, became possible. Now any unwinding of these short positions is going to see a sharp move upwards. Of course this will include large bumps 'drops' along the way. I personally would like to see a more slower and steady rise in Bitcoin and Cryptocurrencies but this is a highly volatile and highly risky asset class. Speculation is rife. Does anyone know what the short interest is on Bitcoin futures? I am not sure how accurate the following below are: https://bitgur.com/chart/interest https://datamish.com/d/000000004/btcusd?refresh=20s&orgId=1
  6. From a Trend Following perspective, Cryptocurrencies, are providing an excellent short term to possibly medium term trading opportunity. I mainly trade Commodities and Cryptocurrencies using such trading principles. One must be able to adapt and trade based on price action alone. There will be many who think Cryptocurrencies like Bitcoin are junk and are going to fail and go down to zero. They may be right. I do not know at this stage. Psychologically they will not be able to trade Cryptocurrencies based on their bias and emotion. One must put fundamentals to one side when using Trend Following principles and trade purely based on price action. This will ensure that opportunities are not missed. They provide a platform for quick returns though one must not take their eye off the ball as they can come crashing down at any stage so risk management and effective stop losses is a must. If Cryptocurrencies come crashing down then one must be confident enough to 'short' them based on the same Trend Following principles used to go 'long'. If indicators indicate a trend reversal and the price action is bearish and you think Cryptocurrencies are going make a new 'lower low' then one must be ready to go 'short'. Right now the only trade is 'long'.
  7. Bitcoin Cash is up another 17% this morning at 5:28 am! This is based on a price of around $256. Apparently it hit overnight $292.20! Wow. Crypto Strategist Says Bitcoin Futures Pushed BTC Price, As Bitcoin Cash and Litecoin Futures Volumes Soar https://dailyhodl.com/2019/04/02/crypto-strategist-says-bitcoin-futures-pushed-btc-price-as-bitcoin-cash-and-litecoin-futures-volumes-soar/
  8. Bitcoin Cash is still strong and trading over 32% at around 9:15 pm. Impressive performance today. I personally think Bitcoin Cash will need to ensure it can stay above $200 as otherwise it could tumble downwards as quick as it stormed upwards. The other factor is that there could be a lot of technical automated buying based on certain price points being triggered. I have a feel that Cryptos are going to be wildly volatile and lots of tight stop losses and even slightly wider ones are going to be stopped out even if they carried on going upwards.
  9. Litecoin is above 21% at the time of this post. It has just got stronger and stronger throughout the day. What will be interesting is what happens when markets in Asia open? I would not be surprised to see Litecoin hitting the psychological $100 mark in the coming weeks and months.
  10. @cryptotrader, Yes in a sense they are random numbers as you can choose which ever time period you like depending on your investment or trading style and strategy. If one wanted to look at stronger trends over a longer time period then one could look at longer time period moving averages. The most common ones are the 20, 50, 100 and 200 DMA's which I tend to use for trading. Bitcoin is an interesting one as it is one of the rare occasions where I have invested in it and trade it. I have discussed this before on this thread so will not repeat my rationale. When it comes to Cryptocurrencies which in my opinion are one of the highest risk assets to invest and trade in then there are times when more robust indicators and criteria may be required. Hence why I begin to use 500 DMA's plus. Remember Bitcoin is over 10 years old. So we can look at price behaviour and longer term trend and the fact is that over this 10 year period Bitcoin is in a long term upward trend. I recall when Bitcoin was less than $30 and when it was less than $100. So how do I use it? Let me explain though different investors / traders can use if differently. Using more longer term moving averages helps especially when already in a position to confirm the long term bullishness and strength of the trend. So a bullish more longer term trend indicator could be when the 200 DMA crosses the 500 DMA to the upside. Or when the 200 DMA crosses the 900 DMA to the upside. This would show a longer term trend merging with a short time period trend which in my opinion would be a positive indicator. The key thing to remember is that on the chart I posted for Bitcoin, the 500, 600, 700 and 800 DMA's are in sight. Bitcoin hit $5102 today so it is not a million miles away from those longer term moving averages. If it were to hit them then that in my opinion would be extremely bullish and positive for Bitcoin. Longer term investors even look at the 1000 DMA when reviewing their investments. Now when you start overlaying the short term moving averages with the longer term moving averages you can sometimes spot price points which may prove difficult to cross (so resistance at certain price points). When I am investing / trading strong trends then I do not have time limits. I am in positions for as long as the trend lasts in that direction. Along the way I want to see if the price is still strong and on course during its journey and I find looking at longer time period moving averages useful. I accept this will be of little use to day traders, short term traders and even medium term traders. This is for those long term trends and longer time period positions whether they be investments or trades. Also it helps when trying to decide whether to add to positions on longer term trends. There is one important point I must make. Using moving averages by themselves does not guarantee anything. There is mean reversion after all to consider. It must be used along with other indicators to help make an informed trading decision at that time. It can merely help to increase the odds but does not guarantee any success in the trade. Using longer term moving averages does not change the price action or enable you to predict the price action. One could argue that it offers little benefit and to be fair they could have a point. I use it for Bitcoin as it is in a longer term upward trend but is also extremely volatile and very high risk. @cryptotrader, do you not think if Bitcoin surpassed its 500, 600, 700 and 800 DMA's then it would present a more bullish case for Bitcoin going forwards? Would it not demonstrate a stronger long term trend?
  11. Bitcoin Cash is up over 30% now is leaving the rest for dust today. I thought I would try and carry out some quick research to try and establish why Bitcoin Cash is performing so much more better than Bitcoin or Litecoin. I found the following article: Bitcoin Cash Is More Widely Accepted Than Bitcoin In Japan, Why It Doesn’t Matter https://www.newsbtc.com/2019/04/02/bitcoin-cash-is-more-widely-accepted-than-bitcoin-in-japan-why-it-doesnt-matter/
  12. I fully expect a large dose of profit taking as traders will be extremely weary of losing any substantial gains made on Bitcoin. I am now going to show the same 'daily' chart as above but this time including 500, 600, 700 and 800 DMA's. As you will see this will provide a pathway for Bitcoin to attempt to travel to its destination. It is about to get very interesting for Bitcoin. The possibility of another downward move is still ever present as this is Bitcoin after all. However if if begins to surpass and stay above its 500, 600, 700 and 800 DMA's then it could present a more bullish case for Bitcoin going forwards.
  13. What is interesting about both Ripple and Stellar is that both are trading above its 20, 50 and 100 DMA's but neither of them are trading above its 200 DMA's. This means one of two things. Either there is going to be some serious catching up to do from Ripple and Stellar in the short term which could see staggering gains. Or they are weaker than the other Cryptos which are currently trading above their 200 DMA's which could indicate a weakness and possible bearish action. I do not know which but it is fascinating to monitor and see what happens. I shall include the charts for both to illustrate the point I have made.
  14. Litecoin is up over 17% which is 11 hours after I posted the above very early in the morning. I want to show you the following 'daily' chart and how the price is above its 20, 50, 100 and 200 DMA's. Not just that but how none of the moving averages curves are sloping downwards. This is a bullish sign to me that the trend is changing over a more longer time period. Also we are seeing 'Higher Highs' and 'Higher Lows' formed which again is another bullish indicator. For those who have been trading Litecoin on the upside will agree that it has been a great 'long' trade from around the middle of December 2018 till date.
  15. Bitcoin Cash is up 22% just 11 hours after I posting early this morning. Now add leverage to the mix and one can begin to see how lucrative trades in Cryptocurrencies can be. This is even after any overnight charges and ridiculous spreads. If one forgets whether they believe in Cryptocurrencies or not and just treat it as an asset which you can trade based on price action rather than any fundamental flaws the specific Cryptocurrency may have then it does open up a whole new arena of trading for those who have a higher risk appetite and are more aggressive traders. Bitcoin Cash is outperforming all the other Cryptocurrencies at around 5:00 pm that are available on IG's platform.
  16. A lot of people are messaging me asking if I think that Bitcoin has bottomed. The simple answer is that I do not know at this moment in time. Cryptocurrencies can look like they are on a bull run and entice traders in and then boom, it drops! Stop losses are very tricky as if they are too tight then the volatility will just stop traders out. A high risk tolerance is necessary to trade Bitcoin and other Cryptocurrencies. One important factor today is that from the 'daily' it is crossed its 200 DMA. This is a positive sign. It does not mean that Bitcoin will just keep going up. There will be a lot of speculative capital and short term profit taking which will mean large drop along the way even if we are about to witness an upward and bullish trend.
  17. @andysinclair, That is interesting though these figures can change very quickly. As long as it does not get to 100%. LOL.
  18. I thought it was a good time to start a completely new thread in relation to the next phase after Blockchain and Cryptocurrencies. This next phase is tokenisation. I include some links below which will help those who are not too familiar with the concept. Tokenomics https://decryptmedia.com/resources/tokenomics Tokenomics - A Business Guide to Token Usage, Utility and Value https://medium.com/@wmougayar/tokenomics-a-business-guide-to-token-usage-utility-and-value-b19242053416 Token Economy https://tokeneconomy.co EToro Acquires Firmo With A Plan To “Tokenize All Assets On EToro” https://thetokenist.io/etoro-acquires-firmo-with-a-plan-to-tokenize-all-assets-on-etoro/ The above is a very good example of IG's competitor trying to steal a march on its rival and be proactive.
  19. Please see the link below for the latest position in terms of market cap for Cryptocurrencies. https://coinmarketcap.com
  20. I thought this article was particularly relevant to this specific thread. A Brief History of the SEC’s Reviews of Bitcoin ETF Proposals https://cointelegraph.com/news/a-brief-history-of-the-secs-reviews-of-bitcoin-etf-proposals
  21. Report: China Leading World in Blockchain Projects https://cointelegraph.com/news/report-china-leading-world-in-blockchain-projects
  22. Let’s get it down to 50%. That would be a great result and improvement. Does anyone know how other CFD and Spreadbetting platforms fare?
  23. Impressive price action this morning from Bitcoin. Hit $5102 and up over 13% right now though was even higher.
  24. Right now both Litecoin and Bitcoin Cash are performing better than Stellar and Ripple. We have finished Q1 and the price action is there for all to see. There are still another 3Q's to go so it will be interesting to see which Cryptocurrency that IG offers on its platform is the best performing by the end of 2019. The returns are there on Cryptocurrencies if one puts any bias towards the sector and personal opinion to one side and just focus on price action. Forget whether it is junk or whether it will succeed or not to one side. If one just focuses on the price action then even with the poor spreads and margin requirements there is still money to be made on this asset class when they are trending upwards.
  25. There was a lot of people within the IG Community who felt that Blockchain was just a fad and there were no real life problems which it could solve and it would just fade away. Blockchain is still here and is gaining more and more traction. Yes the uptake is very slow but it is still here and getting stronger with tokenisation coming to the fore. Below is a rather interesting section from Goldman Sachs - Blockchain: The New Technology of Trust https://www.goldmansachs.com/insights/pages/blockchain/ It is not just Goldman Sachs but IBM, Facebook, Amazon, etc. They are all focussing on Blockchain and looking at ways to integrate it into their business. Once they do then the smaller companies will follow. This will take many years but there is going to be a lot of growth within the Blockchain sector in my personal opinion.