Luxury ETF is breaking outThe Krane shares Luxury ETF was a novel idea to give investors the exposure to the Luxury sector. But with Chinese consumer weak sentiments and inflation in developed countries, the Luxury goods manufacturers had a bad couple of years. Recently the ETF has been breaking out of its 200 Day SMA. After all the 20-Day, 50-Day and 100-Day SMA spending significant amount of time below 200 Day SMA on a daily chart, the ETF has broken out of its 200 Day lows. It has recently had a good run with sizeable rallies daily. My assessment is that this breakout will sustain for some time to come
Etfs
KOLD: Potential Reversal Play Near Demand ZoneInstrument: ProShares UltraShort Bloomberg Natural Gas (KOLD)
Timeframe: 4H Heikin Ashi
The ETF has been in a downtrend, characterized by a descending trend line connecting the lower highs.
Recent price action suggests an early breakout above the descending trend line, signaling a potential shift in momentum.
Stochastic RSI also shows oversold conditions with a bullish crossover forming, indicating momentum may favor an upward move.
Sector Rotation:
Recent trends suggest the energy sector is undergoing a sector rotation as market participants focus on cyclical and value stocks, especially in commodities like natural gas. This aligns with a potential upside for KOLD in the short term.
Trump Policy Influence:
With renewed attention on energy policies influenced by Trump's stance on energy independence and deregulation, investor sentiment in the energy sector is expected to shift. This policy backdrop could provide additional momentum for a bullish move.
Entry: ~ $33.72
Stop Loss: Below $26.70 (demand zone distal line).
Targets:
$34.01 (short-term target, RRR ~2:1).
$42.79 (mid-term target, RRR ~4:1).
$48.68 (long-term target, RRR ~6:1).
Position size: Risk no more than 1–2% of account balance per trade.
Supply Zones:
Supply Zones identified at $42.79, $48.68, and $63.22, providing potential take-profit areas for bullish trades.
A major resistance at $78.83, marking the upper boundary for a long-term bullish trend.
Demand Zone:
Significant Demand Zone in the $26.73–$27.78 range, a critical area for potential price reversal .
Disclaimer:
This idea is for educational and informational purposes only and does not constitute financial or investment advice. Trading involves significant risk, and past performance is not indicative of future results. Always do your own research and consult a licensed financial advisor before making any trading or investment decisions. You are solely responsible for your actions and decisions.
Trading CFDs on Stocks vs ETFs: Differences and AdvantagesTrading CFDs on Stocks vs ETFs: Differences and Advantages
Many traders wonder whether it’s worth trading ETFs vs stocks. The truth is that they both offer distinct advantages depending on your strategy. Whether you're drawn to the diversification of ETFs or the high volatility of individual stocks, understanding their differences is key. This article breaks down the difference between stocks and ETFs and the advantages of each.
What Are ETFs vs Stocks?
Although you are well aware of what stocks and ETFs are, let us give a quick overview. ETFs, or exchange-traded funds, are collections of assets like stocks, bonds, or commodities bundled into a single security. Instead of buying individual assets, traders gain exposure to an entire market segment or strategy by trading ETFs. For example, SPY tracks the S&P 500, providing access to 500 major companies in one trade. ETFs are traded on exchanges like stocks, with prices fluctuating throughout the day based on supply and demand.
Stocks, by contrast, signify direct ownership in a particular company. When trading stocks, you’re focusing on the performance of that single entity, whether it’s a household name like Tesla (TSLA) or an emerging small-cap company. In comparing stocks vs an ETF, stocks are often more volatile than ETFs, creating opportunities for traders to capture sharp price movements.
In this article, we will talk about CFDs on ETFs and stocks. Contracts for Difference (CFDs) allow traders to speculate on the rising and falling prices of an asset without owning it. To explore a world of stocks and ETFs, head over to FXOpen.
Key Differences Between ETFs and Stocks
Understanding the distinctions between an ETF vs stocks is essential for traders aiming to refine their strategies. While both are popular instruments, they behave differently in the market and suit different trading approaches. Let’s break it down.
1. Composition
The primary difference between an ETF and a stock is its makeup. ETFs are baskets of assets like stocks, bonds, or commodities, offering built-in diversification. For example, the Invesco QQQ ETF holds top Nasdaq-listed companies like Apple, Microsoft, and Tesla. Stocks, however, represent a single company. Trading a stock like Amazon (AMZN) means your potential returns depend solely on its performance, while ETFs spread risk across multiple assets.
2. Volatility
Stocks are generally more volatile. A single earnings miss or CEO resignation can send a stock’s price soaring or crashing. ETFs, because they pool multiple assets, experience smaller swings. For instance, SPY’s price tends to move more steadily than a volatile stock like Tesla, making ETFs potentially easier to analyse for certain trading strategies.
3. Liquidity and Trading Volume
Liquidity varies significantly. ETFs tracking major indices like SPY are considered liquid instruments, with high trading volumes. Stocks can be just as liquid, especially large-cap companies, but smaller or niche ETFs and stocks may suffer from lower liquidity and wider spreads or gaps in pricing.
4. Costs
Investing in stocks typically involves just the price of the shares and brokerage fees. ETFs often have expense ratios—annual fees taken from the fund’s value. While these are usually small (e.g., 0.09% for SPY), they’re an added cost traders need to consider.
However, with ETF CFDs, these fees are bypassed, leaving traders with only the broker’s spread and commission to consider. Stock CFDs work similarly, eliminating transaction costs tied to owning the underlying asset.
Advantages of Trading ETFs
Trading ETFs offers unique opportunities that appeal to a range of strategies. Their structure, diversity, and flexibility make them a valuable choice for traders. Here’s what sets them apart:
1. Diversification in a Single Trade
Trading ETFs gives exposure to a group of assets, reducing the risk of being impacted by a single asset's performance. For instance, SPY tracks the S&P 500, spreading risk across 500 companies. This makes ETFs a great way to trade entire sectors or indices without committing to individual assets.
2. Sector or Thematic Focus
ETFs allow traders to target industries, regions, or themes with precision. Whether it's technology through XLK, emerging markets via EEM, or even volatility with UVXY, ETFs open the door to strategies that align with traders’ interests and market views.
3. Lower Volatility
Because ETFs pool assets, they experience less extreme price movements than individual stocks. This steadier behaviour can make them suitable for traders looking to avoid the sharp volatility of single stocks while still taking advantage of price action.
4. Liquidity in Major Funds
Popular ETFs like QQQ and SPY are highly liquid, which may contribute to tighter spreads. Their volume also supports smooth execution for both large and small positions.
5. Accessibility Through CFDs
Many traders prefer ETFs via CFDs, which allow traders to open buy and sell positions without owning the underlying asset. CFDs often provide leverage, giving traders the potential to amplify returns while keeping costs tied to spreads and commissions instead of fund expense ratios (please remember about high risks related to leverage trading).
Advantages of Trading Stocks
Trading stocks offers a direct and focused way to engage with the market. In ETF trading vs stocks, stocks may provide unique opportunities for traders who are drawn to fast-paced action or want to specialise in specific companies or sectors. Here’s what makes trading stocks appealing:
1. High Volatility for Bigger Moves
Stocks often experience significant price swings, creating potential opportunities for traders to capitalise on sharp movements. For example, earnings reports, product launches, or market news can drive stocks like Tesla (TSLA) or Amazon (AMZN) to see dramatic intraday price changes.
2. Targeted Exposure
With stocks, traders can zero in on a single company, sector, or niche. If a trader believes Apple (AAPL) is set to gain due to new product developments, they can focus entirely on that potential without being diluted by other assets in a fund.
3. News Sensitivity
Stocks respond quickly and significantly to news events, providing frequent trading setups. Mergers, management changes, or regulatory updates often result in immediate price movements, making them popular among traders who thrive on analysing market catalysts.
4. Wide Range of Opportunities
The sheer variety of stocks—from large-cap giants to small-cap companies—offers endless opportunities for traders. Whether trading high-profile names like Nvidia (NVDA) or speculative small-caps, there’s something for every trading style and risk tolerance.
5. Leverage with CFDs
Stocks can also be traded via CFDs, allowing traders to take advantage of price movements with smaller initial capital. This opens the door to flexible position sizes and leverage, amplifying potential returns in active trading.
ETFs for Swing Trade and Day Trade
ETFs cater to both swing and day traders with their diverse offerings and high liquidity. Some popular swing trading ETFs and ETFs for day trading strategies include:
ETFs for Swing Trading
- SPY (S&P 500 ETF): Tracks the S&P 500, offering exposure to large-cap US companies with steady trends.
- IWO (Russell 2000 ETF): Focuses on small-cap stocks, which tend to be more volatile, providing swing traders with stronger price movements.
- XLK (Technology Select Sector SPDR): A tech-heavy ETF that moves in response to sector trends, popular for capturing medium-term shifts.
- XLE (Energy Select Sector SPDR): Tracks energy companies, useful for swing traders analysing oil and energy market fluctuations.
Day Trading ETFs:
- QQQ (Invesco Nasdaq-100 ETF): Offers high intraday liquidity and volatility, making it a favourite for fast trades in tech-heavy markets.
- UVXY (ProShares Ultra VIX Short-Term Futures ETF): A volatility ETF that reacts quickly to market fear, providing potential opportunities for rapid price changes.
- XLF (Financial Select Sector SPDR): Tracks financial stocks and has consistent volume for capturing short-term sector-driven moves.
Stocks for Swing Trading and Day Trading
Selecting the right stocks is crucial for effective trading. High liquidity and volatility are key factors that make certain stocks more suitable for swing and day trading. Here are some of the most popular options for both styles:
Stocks for Swing Trading
- Apple Inc. (AAPL): Known for its consistent performance and clear trends.
- Tesla Inc. (TSLA): Exhibits significant price movements, offering potential opportunities to capitalise on medium-term swings.
- NVIDIA Corporation (NVDA): A leader in the semiconductor industry with strong momentum, suitable for capturing sector trends.
- Amazon.com Inc. (AMZN): Provides steady price action, allowing traders to take advantage of consistent movements.
Stocks for Day Trading
- Advanced Micro Devices Inc. (AMD): High daily volume and volatility make it a favourite among day traders.
- Meta Platforms Inc. (META): Offers substantial intraday price swings, presenting potential trading opportunities.
- Microsoft Corporation (MSFT): Combines liquidity with moderate volatility, suitable for quick trades.
- Alphabet Inc. (GOOGL): Provides consistent intraday movements.
How to Choose Between an ETF vs Individual Stocks for Trading
Choosing between stocks and ETFs depends on your trading goals, strategy, and risk appetite. Each offers unique advantages, so understanding their characteristics can help you decide which suits your approach.
- Risk Tolerance: Stocks often come with higher volatility, making them attractive for traders comfortable with sharper price movements. ETFs offer diversification, which can reduce the impact of individual market shocks.
- Trading Strategy: For short-term trades, highly liquid ETFs like QQQ or volatile stocks like TSLA might be considerable. If you're swing trading, ETFs and large-cap stocks may provide steady trends.
- Market Focus: In individual stocks vs ETFs, ETFs give access to broad sectors or indices, popular among traders analysing macro trends. Stocks allow for focused plays on individual companies reacting to earnings or news.
- Time Commitment: Stocks typically require more monitoring due to their rapid price changes. ETFs, especially sector-specific ones, may demand less frequent attention depending on your strategy.
The Bottom Line
ETFs and stocks may offer unique opportunities, whether you're targeting diversification or sharp price movements. By understanding the differences between ETFs versus stocks and aligning them with your strategy, you can take advantage of different trading conditions. Ready to start trading? Open an FXOpen account today to access a wide range of ETF and stock CFDs with trading conditions designed for active traders.
FAQ
What Is an ETF vs a Stock?
ETFs (exchange-traded funds) are collections of assets, such as stocks or bonds, combined into a single tradable unit. They offer built-in diversification, as buying one ETF provides exposure to multiple assets. Stocks, in contrast, signify ownership in an individual company.
Should I Trade the S&P 500 or Individual Stocks?
Trading the S&P 500 (via ETFs like SPY or through index CFDs) provides exposure to the 500 largest US companies, reducing reliance on any single stock. Individual stocks offer higher volatility and opportunities for sharper price movements. Evaluate your strategy and risk tolerance to choose the suitable asset.
ETFs vs Individual Stocks: Which Is Better?
Neither ETFs nor individual stocks are inherently better—it depends on your goals. ETFs offer diversification and potentially lower volatility, making them suitable for broad market exposure. Stocks provide targeted opportunities from individual company performance.
Do ETFs Pay Dividends?
Yes, ETFs often pay dividends when their underlying holdings generate income. These are typically paid out periodically, similar to dividends from individual stocks. However, when trading CFDs, dividends are not paid in the traditional sense, as you do not own the underlying asset. However, adjustments are made to your account to reflect dividend payments.
Can I Sell ETFs Anytime?
ETFs trade on exchanges during market hours, making them highly liquid. Therefore, you can buy or sell ETFs on specific days and hours.
Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
VGT Post-Election Year ReturnsVanguard Information Tech ETF ( AMEX:VGT ) tends to consistently perform best in the year following a US Presidential Election. I believe given its track record, VGT could replicate the previous three post-election years. This would put the price at approximately $800 at the end of 2025.
Strategy:
My strategy has been to build a position throughout the pre-election and election year, and rotate out of the position into better yielding opportunities exactly one year after the November 2024 election.
KraneShares Asia High Yield Bond ETF Analysis 10/15/24DISCLOSURE: As of 10/15/24 I have no open position in NYSE: KHYB
KHYB is an asia focused high yield corporate bond fund. The current yield is 15.3% per annum.
Why asia high yield?
1. Higher risk premium for high yield corporate bonds
The asia corporate bond sector has higher yield given similar rated bonds in western markets. In particular the spread for high yield asian corporate bonds is 800 basis points above the risk free rate.
2. Lower default rates and higher coverage ratios
Asia high yield bonds have lower default rates and higher coverage ratios to their US and EU counterparts. This fact alongside the higher risk premium points to a greater reward/risk ratio in the bond market compared to other regions and grade of bonds.
3. Capital appreciation potential
With the defaults of the Chinese real estate developers the asia high yield space took a hit in price and default rates. If you are confident that default rates will return to the historic norm or lower the share price of KHYB could return to the previous highs in the $40/share range.
Why KHYB?
1. Excludes Japanese bonds
Japan is an exception in the asia bond space in that the country has negative real yields. Not to say they should be avoided, but if you are looking for positive yields and not to speculate on rates removing Japan is a prudent choice.
2. Shorter bond duration
KHYB has an average bond duration of 2 years. This is below the asia high yield average of 2.7 year duration. This lowers the price fluctuations as opposed to longer dated bond funds.
3. Below average default rates
Despite the defaults in broader asia credit market throughout 2022, the KraneShares fund did not experience a single default in their portfolio. Of course their portfolio declined in value alongside the market, but this statistic goes to show the responsibility and competence of the managers.
Here is the link to a presentation by KraneShares where I sourced most of this data: engage.kraneshares.com
If you enjoyed my article follow for more reports posted regularly
Pre-earnings Run PatternBellwether of the ETF industry, NYSE:BLK reports Oct 11th and has already had a pre-earnings run. It is important to prepare ahead of earnings runs, which form 2-4 weeks ahead of the earnings release date. Dark Pools already know most of what is in the report. The long reversal tail candlestick signaled the probable run for a swing-style trade.
#Ethereum Update:Today was the first day ETH ETFs were traded.
The price of ETH is now correcting because this news is already known and has become just a formality.
What’s important about these ETFs are the volumes, which in the case of the #BTCETF approval initially put selling pressure on the market, followed by a larger upward movement.
I have two scenarios for this 1-day (1D) timeframe:
🟢 Green Scenario (Bullish): Possible recovery and increase in the coming days.
⚫ Black Scenario (Bearish): Short-term correction, but potentially very bullish in the medium term because a lot of liquidity has formed in that marked area and we also have an FVG (imbalance) on the W timeframe + resistance on that parallel channel.
Watch the market closely 3100-3300 and consider these scenarios in your trading strategies!
All eyes on 69000!Once again, all attention is directed towards one area: 69k, the ATH from the last cycle. It's the zone with the trendline, order block, and Fib attention area.
If this zone becomes support, there's only one way - up.
During this consolidation in the range, liquidity has been taken only from below the consolidation. Next, the liquidity from the upper side, 73-80k, will be targeted.
Altcoin season? Very close.
However, there's a chance some may make another low in this consolidation, and with liquidity taken from there, a larger climb might begin. The market sentiment has quickly shifted from bearish to bullish with just a small pump.
It might be wise to place buy orders a bit lower as a precaution.
Overall? I'm very bullish.
Institutions, Pension Funds, Investment Funds, the world's most powerful countries (not Germany :))), ETFs (Bitcoin and Ethereum, and maybe soon Solana), Donald Trump (almost a certainty as the future US president): BUY BITCOIN/crypto and promote it.
Super cycle is coming! 🌟
Should You Long SOL on Solana ETF Rumors? A Deep DiveCNBC's Brian Kelly, a crypto investor and "Fast Money" trader, recently ignited a debate by suggesting Solana (SOL) could be the next cryptocurrency to get a spot exchange-traded fund (ETF) in the US. While this news might sound bullish for SOL, the decision to "go long" – meaning buying and holding for a price increase – requires careful consideration. Here's a breakdown of the factors to weigh before diving into SOL based on ETF speculation.
Potential Benefits of a Solana ETF
• Increased Accessibility: An ETF streamlines the process of investing in SOL. Unlike buying directly on crypto exchanges, which can be intimidating for new investors, an ETF would trade on traditional stock exchanges. This could attract a wider audience and potentially drive up demand for SOL.
• Enhanced Liquidity: ETFs generally trade with higher daily volume compared to individual cryptocurrencies on exchanges. This increased liquidity could benefit SOL by making it easier to buy and sell without significant price fluctuations.
• Boosted Credibility: SEC approval of a SOL ETF would provide a significant stamp of legitimacy for the project. This could attract institutional investors who are often hesitant to enter the unregulated crypto market. A potential influx of institutional money could significantly boost SOL's price.
However, Don't Get Carried Away Yet
• Uncertain Approval Timeline: While Kelly's prediction sparked a conversation, it's important to remember it's just speculation. The SEC has not officially confirmed plans for a Solana ETF, and the approval process could take months or even years.
• Regulatory Hurdles: Just like with Ethereum ETFs, the SEC might raise concerns about potential market manipulation or the underlying technology of Solana. These hurdles could delay or even derail the approval process.
• ETF Structure Matters: The devil is in the details. Not all ETFs are created equal. Some might hold actual SOL, while others might use derivative contracts. The specific structure of the proposed ETF will significantly impact your investment exposure.
Alternatives to Consider
• Direct SOL Purchase: If you're confident in Solana's long-term potential, buying SOL directly on a crypto exchange could be a viable option. However, ensure you understand the risks associated with managing your own crypto wallet.
• Diversified Crypto Funds: Several investment funds offer exposure to a basket of cryptocurrencies, including Solana. This might be a good option for investors seeking broader diversification within the crypto market.
Ultimately, the decision to "go long" SOL should be based on your individual investment goals, risk tolerance, and thorough research. Don't base your investment solely on ETF speculation. Analyze Solana's fundamentals, track its development roadmap, and stay updated on regulatory developments.
Here are some additional factors to consider:
• Solana's Recent Performance: While SOL has experienced significant growth in the past, its price can be volatile. Analyze its historical performance and understand the risks involved.
• Competition within the Smart Contract Space: Solana faces stiff competition from established players like Ethereum and emerging projects. Research how Solana is differentiating itself and its long-term competitive advantage.
• Your Investment Horizon: Are you looking for a short-term trade or a long-term investment? ETFs might be more suitable for a long-term approach, while direct crypto purchases could offer more flexibility for short-term trading (but with higher risk).
Remember, investing in any cryptocurrency is inherently risky. Conduct your own due diligence and never invest more than you can afford to lose.
Congress Throws Weight Behind Spot Ethereum ETFs: SEC Approval?Congress Throws Weight Behind Spot Ethereum ETFs: SEC Approval on the Horizon?
On May 22nd, 2024, a bipartisan group of US lawmakers sent a strong message to the Securities and Exchange Commission (SEC). In a letter, they urged the regulatory body to approve applications for spot Ethereum exchange-traded funds (ETFs). This move signifies a growing momentum in Congress for legitimizing Ethereum within the traditional investment landscape.
The letter's signatories included heavyweights like House Majority Whip Tom Emmer (R-MN) and Financial Services Committee Vice Chairman French Hill (R-AR). Notably, Democrats were also present, with Representatives Josh Gottheimer (D-NJ), Mike Flood (R-NE), and Wiley Nickel (D-NC) joining the call for regulatory clarity. This bipartisan support highlights a potential turning point for the cryptocurrency industry, as it demonstrates a willingness from both sides of the aisle to embrace innovation.
Why Ethereum ETFs Matter
Exchange-traded funds, or ETFs, are investment vehicles that track the performance of an underlying asset, like a basket of stocks or a commodity. A spot ETF would directly hold Ethereum, allowing investors to gain exposure to the cryptocurrency without the complexities of managing their own digital wallets. This could significantly increase investor participation in the Ethereum market, potentially leading to greater price stability and mainstream adoption.
For many lawmakers, approving spot Ethereum ETFs is a logical next step after the SEC's green light for spot Bitcoin ETFs earlier this year. The argument goes that the SEC has already established a framework for evaluating these products, and Ethereum, as the second-largest cryptocurrency, deserves similar treatment.
The Lawmakers' Argument
In their letter, the lawmakers specifically urged the SEC to apply consistent standards. They argued that the "principles" used to approve spot Bitcoin ETFs should also be employed for Ethereum. This consistency is crucial for building trust in the regulatory process and fostering a fair market environment for all cryptocurrencies.
Furthermore, the letter highlights the potential benefits of Ethereum ETFs for investors. Increased accessibility could attract new capital to the market, bolstering innovation and economic growth within the Ethereum ecosystem. Additionally, the lawmakers suggest that a regulated ETF structure would offer greater investor protection compared to the current, less-regulated avenues for acquiring Ethereum.
The Road Ahead
The SEC is currently facing deadlines for decisions on several spot Ethereum ETF proposals. The letter from lawmakers arrives at a critical juncture, potentially influencing the regulatory body's final verdict. While the SEC has historically expressed concerns about potential market manipulation and investor protection in the cryptocurrency space, the recent Bitcoin ETF approvals suggest a shift towards a more open stance.
Potential Challenges
Despite the growing momentum, some hurdles remain. The SEC might still raise concerns about the volatility of the Ethereum market and the potential for manipulation. Additionally, unlike Bitcoin, Ethereum's underlying technology is constantly evolving, which could introduce complexities for regulators.
Conclusion
The bipartisan push for spot Ethereum ETFs signifies a growing recognition of the potential of cryptocurrencies within the US financial system. With lawmakers advocating for regulatory clarity, the SEC faces a crucial decision that could shape the future of Ethereum and the broader cryptocurrency landscape. Whether the SEC approves these ETFs remains to be seen, but the recent developments suggest a potential paradigm shift in the regulatory approach to digital assets.
BTC - Path of least resistance and maximum painI'm not a conspiracy nut but giving room for belief in conspiracy theories, let's say the entire crypto market is a "washing machine" for various fronts. It just doesn't have any practical utility right now, that makes the world a better and safer place. The possibilities are endless but let's just say it hasn't been leveraged for any noble cause, yet. Sakamoto Natoshi would be turning in his grave should he know what his noble invention was being used for, if indeed it was a noble act from the get go.
Bottomline, it has a shade to it's existence, and as such can only be construed to serve malicious intentions of governments, authorities and the rich.
So it is always bound to opt the path of least resistance and maximum pain, as far as common folk are concerned, i.e. acting against them.
Now stepping into reality, considering common folk, retail traders and institutions who are involved in this charade.
Common folk: I meet people constantly who have never heard of bitcoin, also people who learnt about it's existence just now in 2024!
A subset of this common folk with some grasp of how world economics work and an appetite for risk want a piece of the action.
Retail Traders: I'm not sure if the term "retail traders" also encompasses the so called "whales". I'm assuming not. So let's say everyone working with a portfolio value of 1BTC or less. From this category (at least the sensible and well educated) never expected what happened in the first 3 months of 2024.
But now that we are where we are, they also want a piece of the action(including myself), knowing very well they could be too late at the scene.
Institutions: All the hedge funds and their 60+ grandpa managers who do not understand technology are also now a part of this charade, in addition to various tech companies and their CEOs, playing we know it all.
"Apparently" the whole rally is attributed to the ETF inflows from said institutions. And somehow there is this sense of unshakable faith in the air, if these institutions are already invested, BTC is bound for the moon and it can never look back again. There are preposterous articles on how any price below 70k was a buy!
Everything mentioned so far isn't an established fact! Let's now turn to tangible facts we know, our dear charts! Hoping and praying to the good lord, that this data is also not fabricated.
The 12 month candle on the left is as big as it's ever gotten. We still have 7 months left to go until the candle closes. And looking at the volume, we are at 450k on this particular exchange, compared to an average of ~2 million on previous full candle.
Assuming half a million traffic per quarter, this volume does make a lot of sense but what it doesn't correlate to, is the ETF's inflows. If anything, it should be double or triple the average based on all the news about the kind of money that's been inflowing. Very skeptical!
If I were any sensible and should I consider myself in the position of a market maker, I see a lot of paths testing and breaking supports(the beaten path), rather than price discovery(the road not taken). Because,
-who dares to buy any further?!
-retail is already late to the party, don't want that portfolio eroding
-institutions are "supposedly" already invested, who are they going to sell it too? They should be idiots to buy it all over again all the way to 100k, coz if nobody wants to buy now, who's gonna buy at 100k?!
-halving has reduced the supply, there is less supply for the next 3 quarters than the previous 12 month candles and it makes sense to buy/sell lower again than at the 100k or 130k area
On the contrary, looking at the perspective of taking bitcoin away from the common folk's reach, it does make sense to drive the price into the 6 figures. But then again, if you take it away from the common folk's reach, how is the so called "evil system", that's basically designed to prey on simple minds, supposed to work?!
I know, I know, I'm rambling! The point is, I don't see this going to the moon any time soon! And I could be completely wrong about this and may have already fallen for the trap that's set for all of us! Time will only tell.
Heartfelt thanks to anyone who's managed to reached thus far, please leave a like if you did like the read or teach me a swear word in your mother tongue down in the comments, for wasting your time! Peace!
Bitcoin $Btc #Btc KISS (keep it simple stup*d)
Your job is really so much easier than you think right now. Just buy the lines and sell the boxes and you'll be fine over the next few months.
IF you get scared and feel your bag is bigger than you are comfortable with on the way down the begin using the same lines above as you get below them to trim on the way back up just enough to stay within your comfort levels.
In the BIGGER picture i think this cycle is far from over and there will be plenty more opportunities along the way to make $ buying the lows and selling the highs.
#Bitcoin
Has the Bitcoin Market Become More Manipulated After ETFs? The long-awaited approval of a Bitcoin exchange-traded fund (ETF) in late 2023 undoubtedly marked a turning point for the cryptocurrency. However, with this institutional influx, concerns regarding increased market manipulation have also surfaced. Let's delve into whether these concerns hold water and what the future might hold for Bitcoin's volatility.
Pre-ETF Era: A Wild West of Wash Trading
Market manipulation in Bitcoin wasn't exactly a new phenomenon before ETFs. Wash trading, a tactic where investors buy and sell the same asset repeatedly to inflate its trading volume, was a prevalent concern. This created an illusion of high demand, enticing others to invest and driving prices up artificially. Mark Cuban, a prominent crypto investor, even predicted wash trading as the "next possible implosion" for the industry in early 2023 .
The Double-Edged Sword of Institutional Investors
The arrival of big players with the ETF has undeniably brought more regulation and scrutiny to the market. This, in theory, should deter blatant manipulation tactics. However, the sheer volume these institutions trade with can also influence prices significantly. The question isn't whether they manipulate, but rather how their trading strategies might unintentionally impact market behavior.
A Glimpse into the Recent Controversy
A recent Wall Street Journal report alleging that Binance, a major cryptocurrency exchange, fired an investigator uncovering market manipulation by a VIP client reignited concerns . This incident highlights the potential conflicts that can arise when profit margins clash with regulatory compliance.
So, Has Manipulation Increased?
The answer is complex. While blatant wash trading might be less prevalent, the impact of institutional trading volume and potential conflicts within exchanges are new considerations. It's likely that the nature of manipulation has evolved, becoming more subtle and potentially harder to detect.
A Future of Stability or Stagnation?
The influx of institutional investors could indeed lead to a more stable Bitcoin market, mirroring traditional stock indices. This would be a far cry from the explosive, volatile growth Bitcoin has seen in the past. However, this stability might also come at the cost of reduced returns for investors hoping for another Bitcoin boom.
The Long Hodler's Perspective
As a large language model, I can't claim to be a "hodler" (long-term Bitcoin holder). However, historical data suggests that Bitcoin has weathered similar periods of regulation and scrutiny before. The key takeaway is that despite potential manipulation, Bitcoin's underlying technology and its core value proposition as a decentralized currency still hold significant appeal.
The Road Ahead
The future of Bitcoin manipulation hinges on two key factors:
1. Regulatory Strength: Stronger regulations with clear guidelines and robust enforcement mechanisms are crucial to deter future manipulation attempts.
2. Transparency on Exchanges: Exchanges need to be more transparent about their trading practices and address potential conflicts of interest.
Conclusion
Whether Bitcoin morphs into a stable, institutionalized asset or maintains its volatile character remains to be seen. However, the fight against manipulation, regardless of its form, will be critical in ensuring a fair and healthy Bitcoin market for all participants.
Get Ready for Bitcoin to Rally as ETF Adoption Grows!Bitcoin's future is here due to growing ETF adoption. Here's a breakdown of the key points with a neutral perspective:
Key Points:
• ETF Adoption: The message highlights the increasing adoption of Bitcoin ETFs, which could be driving institutional investment.
• Potential Rally: This suggests that Bitcoin's price may rise significantly due to this new wave of interest.
• Call to Action: It strongly encourages you to buy Bitcoin now to potentially profit from the rally.
Neutral Perspective:
• Investment Risk: Bitcoin is a volatile asset, and there's no guarantee of a rally.
• Do Your Research: Focus on potential gains but there are investment risks. It's important to understand Bitcoin's price history and the risks involved before investing.
• Long-Term Strategy: Understand short-term gain. Consider if Bitcoin aligns with your long-term investment goals.
Before Investing:
• Research Bitcoin's price history and volatility.
• Understand the risks and potential rewards involved.
• Only invest what you can afford to lose.
Overall:
There are potentially lucrative opportunities but be cautious. Do your research and prioritize long-term strategy over following short-term hype. Consider consulting a financial advisor for personalized guidance.
BTC Phase 4 ResistanceBTC is currently testing the All time High.
Will BTC just plough through the resistance because of the ETF's or is there any other scenario possible? There is an interesting correlation and there are also key differences between the 2017 Bull Market Cycle and the current timeframe if we analyse the weekly and monthly timeframe.
Historic Cycle 2017
As BTC went through the previous resistance zones in 2017 the pattern was identical until phase 3. Back then there was heavy resistance and we had a correction to the highs of phase 2, before continuing higher.
Current Cycle 2024
In this current cycle we have not had a healthy correction to the highs of phase 2, instead prices continued to climb higher. The resistance zone for phase 3 in both cases was almost identical at around 40% under the previous All time High. As we approach the resistance of phase 4, are pricing continuing to climb higher?
Historic 86 Level Resistance
In 2017 we got rejected at phase 4 when the RSI reached the 86 Level on the Weekly timeframe.
Current 86 Level Resistance
Currently we are at the same level on the RSI. We think it is very likely that next month BTC get's rejected and we enter a correction.
Swift moves to the upside for a long periods of time are a warning sign for any asset. If BTC doesn't have solid corrections we could have a shorter bull market then expected.
OIH: Keep Going! 👏OIH is on its way toward our green Target Zone (between $$321.09 and $339.97), nearing the last local high from the end of January. We expect the ETF to arrive in said Target Zone during the orange wave ii before the orange five-wave downward structure should continue, ultimately concluding below the support at $277.30 (but still above $250.69). Still, there is a 32% chance that the orange wave Alt.ii has already finished without reaching our Target Zone, which would be confirmed by the price dropping below $277.30 earlier.
HIMAYCUSDT - POTENTIAL SETUPThis coin is in strong bullish trend and moving in ascending channel
market is consistently printing HH's and HL's.
The price is reacting well the support and resistance of channel.
If the market successfully sustain this bullish confluence the next leg high could go for new HH.
Bitcoin Cycle Top ProjectionUsing Fib Time Zones combined with Fib Channels (both starting at the beginning of this range) I'm projecting Bitcoin's top to come March 2025 in the range of $132,000 - $144,000 .
Personally, I believe this may be THE top. Time will tell, but with the advancement of AI, the Bitcoin ETF's gaining control of a considerable amount of the BTC supply and the digital dollar vs. BRICS I see a whole change in the way we exchange value between one another.
There was A LOT of math within this, but all the time zones and each cycle's channel fall on actual fib levels.
Yes, this is much earlier than all previous cycles - which leads me to my next point...
This cycle IS different. Do you really believe now that the institutions are invested they'll give any retail investor/historic BTC trader a "good" entry?
Bitcoin's on it's run, and if you're waiting for a dip you may miss this rally...
Bitcoin is currently exhibiting a short-term bullish sentiment
Technical Analysis:
Bitcoin is currently exhibiting a short-term bullish sentiment as it approaches the 45661 order block. The recent price action suggests a potential move upward, aligning with the prevailing market sentiment.
Key Levels:
Resistance at 45661: The upcoming order block at 45661 is a critical level to watch. A breakout above this level could signal further upside potential.
Support at 30876: On the downside, the 30876 order block serves as a crucial support level. A retracement to this level may provide buying opportunities for traders.