All tagged -2

Does a market react to news or does news react to a market?

On the 31st of October 2018, Bitcoin Cash made a new low of $410.10. Eight days later Bitcoin Cash had gone up 57%.

Has Bitcoin Cash made a significant market low? Is Bitcoin Cash positioned to take the crown and become the market leading cryptocurrency by market cap, and at the same time archive market dominance by following the ideology of Bitcoin’s founder Satoshi Nakamoto?

Or is it just heading for a fight?

As Bitcoin goes under the hammer, is a major change in the cryptocurrency markets taking place?

The cryptocurrency markets got beat up this week, with pundits blaming the drop on the Bitcoin Cash hard fork and everything in between. The 5%, the most consistent investors and speculators, don’t listen to the news, preferring instead to build up their picture of what’s going on, analysing direct market feedback for evidence of shifts in supply and demand.

After a large percentage move down, the 5% are looking for a missing component, the trait that shows up at lows and is absent at highs. Fear.

For cryptocurrencies to replace cash does anything have to change?

Innovators and early adopters, the experienced old hands of the crypto space, who understand completely how to transfer from fiat currency into crypto and back, have a problem even their aptitude at moving funds around between multiple exchanges and wallets can’t solve. And this problem is volatility.

If you’re on a cryptocurrency trading exchange and want to protect your profits, or even if you’ve made losses and just want to get out, where can you put your funds to protect them? The most used solution may not be as safe as you think.

Crowd behaviour at highs and lows and what the 5% do instead when trading Crypto

The term “bubble” is used anytime an asset’s price is driven, by speculation, far away from its intrinsic value.

In the last twenty years, we’ve had an unprecedented number of bubbles. Tech stocks in 2000. Real estate in 2006, Debt in 2007, Bonds in 2013 and Bitcoin in 2017.

Maybe it’s a new technology or a more efficient service, perhaps it’s a scheme where, if successful, it could change your life, but whatever it is, and whatever it does, the behaviour is always the same.

What advertising and market bubbles have in common

When faced with uncertainty, human beings have a tendency to search for the opinions of others, and in precisely the same way, when we open a curiosity gap, it’s known that we experience a strong need or desire to close the gap. Just like the uncertainty pattern, the curiosity gap pattern has been used to manipulate the crowd into action.

You might be thinking that exploiting the crowd using these tactics is a new phenomenon? It’s not.

Indicator settings don’t influence trend direction

Trends, like the planets moving around the Sun, don’t work the way the majority of market participants think they do. There is an unlimited number of ways trends can be traded. The 95% believe the only way to trade a market is by taking a directional position.

While the 95% obsess over indicators and which settings work best, the 5% focus their attention on the interaction of supply and demand and the accompanying levels of fear.

Are cryptocurrencies immune from the Power Law?

The majority of market participants spend their time reading about how the latest and greatest upgrade to an existing blockchain is going to change the game, or they read the opinions of cryptocurrency gurus, following them on social media, reading the tweets and posts for the one thing they are looking for. Certainty.

Unfortunately, certainty does not exist in any market, including the cryptocurrency space. In financial markets, venture capital, and macro economics, there is one law to rule them all.

Crypto trading: The majority look in the wrong place. They get in late, and out early.

The inconvenient truth: Most people new to the world of speculation and trading start defining trends with indicators and signals from the past. They don’t take the time to learn why trends begin, how trends move through time, and how they end.

Technical analysis is often used to show how easy it is to be successful in hindsight; however, the reality, for most, is different when they attempt to use a TA system in real time.

Not understanding background conditions is like walking across a freeway blindfolded.

The inconvenient truth: Most people new to the world of speculation and trading start defining trends with indicators and signals from the past. They don’t take the time to learn why trends begin, how trends move through time, and how they end.

Technical analysis is often used to show how easy it is to be successful in hindsight; however, the reality, for most, is different when they attempt to use a TA system in real time.