Good afternoon my fellow Cryptocurrency trader, we have so much to look at today.
Trump won the US presidential elections and this is having a major effect across everything, not only Bitcoin and the financial markets.
Today we can see Bitcoin hitting a new All-Time High and we wonder what is happening, what to make of this development and how to approach the market.
➖ Ethereum is not trading at $5,000. Ethereum's Ether token ATH stands at $4,868, November 2021. Current price trades at $2,673. Huge discrepancy here, a warning sign.
➖ Dogecoin ATH happened in May 2021 at $0.74, current price is $0.193; huge difference.
➖ Cardano hit an All-Time High of $3.10 in August 2021, current price is almost ten times lower, $0.357.
How to approach the market?
What comes next?
Are you trading?
Are you watching?
Are you holding?
Are you accumulating?
How to approach the market based on current conditions will depend on your trading style, your goals, your capital, risk tolerance, etc. Those pairs trading low can be accumulated, this is true since August 2024 and will continue to be true for several additional months. The pairs trading super high and at resistance, it is better to stay away.
The DXY is ultra-bullish. We tend to say that the stock market crashes when the DXY is bullish, also Bitcoin, but we are seeing stocks rise as well as Bitcoin and the DXY. This means that we are seeing an extraordinary event happening right now.
Will this abnormal behavior continue indefinitely or will the market seek balance? The abnormal behavior will come to an end and the market will seek balance. I cannot say for how long the market reaction to Trumps win will last, but this is an extraordinary event and calls for caution.
We trade based on the long-term.
We buy low to sell high.
➖ Here is an example, this is a chart that looks good:
➖ Here is an example, this is a chart that looks bad:
Buy those trading low.
Sell those trading high.
It is wise to wait for the weekly close.
I will expand in a new article, I lost the flow on this one.
Thanks a lot for the support.
Namaste.
