If you have followed me since my first chart on Tradingview, I called the obvious Bearish conditions facing ETH. I explained that Cryptos are valued by speculator optimism and irrational exuberance. There is absolutely no way to value a crypto-currency. I am not just an investor (Seriously Dyslexic Investor), but I am a software developer as well. I have been trading longer than most here have been alive and have weathered the ugliest of markets in the past. But one thing always stood to reason, companies always have some value and when markets make big corrections it usually means there are opportunities to make money on stocks that fell with the broader market. Unfortunately, with cryptocurrency you hear people saying, "This is the time to buy"; "We are under-valued at this price"; "The next move will be huge". When your hairdresser is talking about what alt-coin they purchased you know the jig-is-up!
So a few months ago I decided to learn to program in SWIFT to test the Ethereum platform to design smart-contracts and play with the blockchain. I have posted my thoughts on this in previous posts. Now ETH is getting pounded even after all the positive volume we saw some weeks back. I noted in a previous post how that buying was being sucked up and barely moving the needle indicating value. Many believed that this was the beginning of the next huge wave north. I felt differently because I saw the buying barely moving the needle. The Bulls came out with predictions of wealth and end-of-year numbers in the thousands of dollars for ETH. I stated, we would see $200 well before we saw $500 and I explained why. I am trying to explain the psychology of trading cryptocurrencies as they are similar in many ways to trading stocks. Anyway, I was preparing another boring chart yesterday indicating I felt we would capitulate and head south any day when I noticed ETH had begun to fall like a rock. I decided not to post in lieu of seeing all the BEARISH sentiment charts flooding the TradingView site.
So, if you made it this far, I am Dollar-Cost-Averaging into ETH, buying small amounts under $200.00. I feel we have much lower to go, but also feel they will eventually run ETH in a short squeeze and I do not want to miss that train. I still do not believe we will see $500 anytime soon. At least not this year UNLESS some news comes out that stuns the ETHER world and is so positive for the VC that ETH just runs north with reckless abandon. I am short but accumulating small amounts under $200. I will buy larger amounts under $170 and so forth should that day come. After I have satisfied myself that I own enough, I will sit back and wait however long it takes for ETH to make news or profit from a short squeeze. As far as the chart goes, it speaks for itself and most people can chart support and resistance. Good luck!
So a few months ago I decided to learn to program in SWIFT to test the Ethereum platform to design smart-contracts and play with the blockchain. I have posted my thoughts on this in previous posts. Now ETH is getting pounded even after all the positive volume we saw some weeks back. I noted in a previous post how that buying was being sucked up and barely moving the needle indicating value. Many believed that this was the beginning of the next huge wave north. I felt differently because I saw the buying barely moving the needle. The Bulls came out with predictions of wealth and end-of-year numbers in the thousands of dollars for ETH. I stated, we would see $200 well before we saw $500 and I explained why. I am trying to explain the psychology of trading cryptocurrencies as they are similar in many ways to trading stocks. Anyway, I was preparing another boring chart yesterday indicating I felt we would capitulate and head south any day when I noticed ETH had begun to fall like a rock. I decided not to post in lieu of seeing all the BEARISH sentiment charts flooding the TradingView site.
So, if you made it this far, I am Dollar-Cost-Averaging into ETH, buying small amounts under $200.00. I feel we have much lower to go, but also feel they will eventually run ETH in a short squeeze and I do not want to miss that train. I still do not believe we will see $500 anytime soon. At least not this year UNLESS some news comes out that stuns the ETHER world and is so positive for the VC that ETH just runs north with reckless abandon. I am short but accumulating small amounts under $200. I will buy larger amounts under $170 and so forth should that day come. After I have satisfied myself that I own enough, I will sit back and wait however long it takes for ETH to make news or profit from a short squeeze. As far as the chart goes, it speaks for itself and most people can chart support and resistance. Good luck!
Comment:
In college, we did this experiment and it has helped me in my trading for years to come. This is how you value a crypto: www.youtube.com/watch?v=pA-SNscN...