Technical analysis...
Last night, into the early morning hours of Wednesday, I was playing the $2500 game with Bitcoin. +$25 of $2500 selling, -$25 of $2500 buying. Not making a killing on each trade, but over the course of several hours, and making that paired trade 5-6 times, it definitely adds up.
90% of the time when trading ETH, one doesn't even have to follow ETH's charts. It almost feels like cheating. BTC and ETH are carbon copies of each other, what happens in BTC, will happen in ETH, there's just a little delay. Proof there's manipulation, so, might as well play the game and benefit from it.
Being a relatively new trader, I'm starting to learn that there are numbers, mental numbers the market shies away from. Think of the numbers on wheel of fortune. $1500, $2000, $2500, $3000. Seems like these numbers, the market cant decide if it wants to "penetrate" or not.
When it comes to making ETH trades, it literally pays to make your decisions on what BTC is doing, or about to do. Like right now, BTC is dabbling with $2550, holding steady at $2547-$2548, while ETH is steadily moving up towards $300. I wouldn't buy ETH now until BTC crests the $2550 line, if BTC doesn't crest $2551, 9 times out of 10 its going to drop a quick $10-$20. This move will directly translate to ETH dropping.
I lean bearish, especially in a market that is so volatile. Id rather increase my number of coin while the price is low, so when the price explodes, my profits are exponential. I guess you could always just buy more coin when you want, but Id rather increase my initial investment. Why invest more dollars, when with a little practice, your existing investment can work for you.
-Obviously there's a ton more that goes into making smart trades. Watching the depth chart, following the order book, understanding existing trend lines, establishing a solid basis of trading understanding; my analysis is merely scraping the surface of what Ive noticed happening. Of course the "stock market" is like a woman, you can be as educated as possible, but in an instant, everything you know and understand could be wrong.
-Any questions, Id be happy to answer, any wisdom from seasoned traders, Id be happy to listen. Thanks!
If we break 310 that's a good sign for the bulls shorter term, have to break 330 for good long term sentiment. The fact that we broke 250 and hit 206 was a setback. Do not expect 400 again anytime soon is my opinion/analysis. (this is for ethereum not as familiar with bitcoin key levels, but it does mirror eachother you are completely right!)
Thanks for your opinion. Definitely something to keep in mind. Im ready to dump what I got into Litecoin, seems like it has the highest to go.
Good analysis! You're right about the market struggling to hit key benchmarks. Usually traders tend to sell around these points which would drive the price down a little. I love channel trading and that chart is looking great! It's forming a small "ascending triangle" which is pretty bullish for short term trading like what you're doing (especially in a single day).
It's so interesting that cryptocurrency can be traded 24hrs a day. This could be a very lucrative way to make small gains while eating a midnight snack! =p
Great article - thanks for posting!
Thanks for the onslaught of the trading jargon, I need to make flash cards lol! That's what Ive been doing, trading damn near 15 hours per day. A seasoned trader friend of my told me about limit buys, so I tried that last night and missed a buy by $4. So my coin gains over the past 2 days have pretty much vanished. Im gonna be waiting for a crash. What do you think? Think it will bottom again? Thanks.
I think because cryptocurrency is so volatile that you'll be fine. Limit is the way to go, when buying market you can end up paying quite a bit more than you expected. Though the downside with limit orders is if the price never touches your limit price you can potentially miss out on getting in. I highly recommend checking out investopedia chart patterns if you're going to continue trading. Although at first it will all look like malarky eventually you'll start seeing patterns on charts and that can help you out a lot. Keep it up man! Good luck out there!