The first newsletter of every month will be a free version of my swing setup and market analysis for one asset that I am following. If you find these helpful consider joining the paid version for daily in depth information and analytics for more assets.
Ethereum
Congratulations are in order, you survived a retrace. We are not out of the woods, but that was the tough week.
After falling 37.13%, Ethereum is showing patterns of consolidation and accumulation. These will produce shorter candles in a tighter range through March. This phase is great for people who have been on the fence about entering the market and are looking to build momentum into the next leg upwards.
Fibonacci’s Golden Rule
Using Fibonacci (Fib) extensions, we can see the price points that have significance in the upcoming months. A good use of this indicator is a ruler; it does not guarantee the movement but shows mathematical numbers that are significant along the pathway. This metric is based on the golden rule, which is a repeating ratio throughout biology and nature. These repeating patterns correlate to markets more often through human nature playing a factor in the average trade. Which brings us to our next indicator fear and greed index.
Fear & Greed Index
A shift in sentiment of an asset is another means to track its price movement. The Fear and Green Index is a collection of Volatility (25 %), Market Momentum/Volume (25%), Social Media (15%), Surveys (15%), Dominance (10%), Google Trend searches (10%). This algorithm produces a number from 1-100, which can give some insight into when to buy and sell. Buying when other’s are fearful, if you have sound fundamentals, can be more profitable in the long run especially when looking for multi-year investments.
One analogy that always stuck with me is relating price movement to car shopping. You don’t pull up on the lot and buy the first car you look at. The salesmen are making huge promises; you really liked the test drive. It’s over. You are already signing contracts even with that shred of doubt in your mind.
That is why you research for the best possible deals and make up a game plan before stepping foot on the lot. It may take more time, but eventually you will confidently find exactly what you’ve been looking for. Why overpay?
This is why emotional trading can cost you profits in the long run. I always get the most “What was that cryptocurrency you were talking about” calls after the accumulation phase is done.
Don’t be “that” guy.
NEWS!
Stone Ridge’s Open-End Mutual Fund to Invest in Bitcoin — SEC Filing Opens the Door for Other Mutual Funds to Add BTC
Asset management firm Stone Ridge has filed with the U.S. Securities and Exchange Commission (SEC) for its open-end mutual fund to invest in bitcoin. “This is a big deal. Stone Ridge filing opens the door for every mutual fund to add bitcoin,” said a fellow asset manager. Read more.
Increasing stock market volatility drags Bitcoin and altcoin prices lower
Growing concerns over rising U.S. Treasury yields are putting pressure on global financial markets and possibly dragging cryptocurrency prices lower. The cryptocurrency market faced another day of downward pressure as the unease in the traditional markets continues to spread following the recent interest rate spike on the 10-year U.S. Treasury bond. Read More.
Harvard Professor Kenneth Rogoff Warns Central Banks Will Never Allow Bitcoin to Go Mainstream
Harvard Professor of Economics and former chief economist at the International Monetary Fund (IMF) Kenneth Rogoff says that central banks won’t allow bitcoin and other cryptocurrencies to become mainstream. “Eventually over the long course of history, the government first regulates and then it appropriates, and I think we can see that happening here,” he warned. Read more.
Grayscale eyes alts such as Cardano, Aave, Chainlink for new investment products
Over the last few months, Grayscale Investments has become one of the most important participants in the cryptocurrency market. Now, in light of the growing competition in the field and the success of its existing products, the asset manager is eyeing new ones to bring to its clients.
To keep up with the expanding market, Grayscale Investments has announced that it is looking into at least 23 different digital assets for “potential new product offerings.” Read more.
That’s all for the free weekly Crypto Crier. If you enjoyed this article please like and share. If you have any questions, please leave a comment and I can answer your questions further. As with all of my writing, this is not financial advice and is my opinion. I cannot stress enough how important it is to do your own research on all financial endeavors. I hope that these newsletters can help investors realize the current financial systems’ downfalls and usher in a more equitable system without middlemen.
Let’s build something together.
Tell your friends and family. This is targeted at entry level education for possible crypto investors. With more people understanding digital assets we can finally progress to better . 🗣️
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