Loading ...Brief Thoughts on Bitcoin
Hat tip to Ken. I like to use the Nasdaq 100 (NDX) as my “momentum filter” for trades. If a stock or asset is still in a downtrend against the Nasdaq 100, I ignore it and find another asset that is beating the Nasdaq 100. This is the foundation of my Sector Rotation strategy.
Bitcoin has been in a 14 month downtrend against the Nasdaq 100 since the peak in December 2017. During the late 2018 market correction, traditional “safe haven” assets like Gold, US Dollars and Bonds outperformed the Nasdaq 100. However, Bitcoin fell faster than the Nasdaq 100 during this period.
Bullish clues: We do see a possible formation of a Wedge pattern with a possible bottom at ratio level 0.4. If or when the Bitcoin:Nasdaq 100 ratio breaks out of this wedge, that would be my signal to buy and you’ll see me posting much more about Bitcoin and other Cryptocurrencies at that time. For now, I have the Crypto sector on hold and looking at other sectors with better immediate opportunity like Technology (Semiconductors), Energy (Solar) and Precious Metals mining stocks. -Harry
I like your strategy Harry
Good way to judge using relative stength vs the broad market
Personally I think Bitcoin is Dead !
Thanks Fully!
I watched an interview with Buffet recently. He said if you buy a farm or a share of a business, and if trading farms or shares of businesses were banned, you’d still have a farm or a share of a business. But if you buy a Cryptocurrency and somehow the trading of Cryptos were banned, what are you left with? Buffet said this is his distinction between an investment and a speculation.
As for me, I’ll buy Bitcoin when it leads the broad market. Until then I can ignore it LOL Many traders have been trying to call the bottom on the Bitcoin Beast, only to watch it continue to weaken against the broad market. 14 months and counting!
Here to remind you: you will be proven wrong.
My response was meant for my friend Fully.