Gold, Silver and Cryptopia
Back from the paradise that is Puerto Rico. Despite the bankruptcy and Hurricane Maria aftermath, the people were amazing and the food out of this world. I can understand the allure.
Before I get to any crypto related matters, I do want to draw your attention to gold and silver. Early in January 2018, I said on Keiser Report that this could be the year for the precious metals. Did I have any special knowledge? Am I able to predict the future? No. And no. The reason was simply a Bloomberg headline from the end of December nothing that hedge funds had dumped their gold positions and gone long the more exciting bitcoin contracts. We all know how that turned out for crypto, but what about gold and silver?
Here are the charts today:
Looking good! For anyone here who hasn't really looked at the precious metals market, I've been long since 2003 and from about then until 2011/12, it was as exciting as the crypto markets are these days. Alas, the past four years has been so boring as both gold and silver have stayed in a long sideways move.
Here's what Jack Chan's chart has to say about the latest action:
Finally, the crypto market continues to tumble. I'll reiterate something I said back in February that, just based on volume numbers, I haven't seen major puking of positions. Seems lots of hodlers refusing to die. Even the bagholders in all the shitcoins are clinging on for dear life. It's a good time to remember to do your own research, don't gamble more than you can afford to lose and remind yourself that cryptocurrencies are brand new technologies and the greatest minds in the world are still working it all out. Bitcoin will either go to zero or to the moon, so be prepared for both. I'm still hodling what bitcoin I can afford to lose. I reckon there is a double bottom forming and the RSI shows it is very over sold so fingers crossed it won't tumble too much further! :D
Either way, bitcoin could use another boring 2014-2015 price action so the engineers can enjoy some peace and quiet while developing the awesome second layer (and third layer!) innovations happening as I type.
[Signed, Stacy]
Awesome Stacy! I’m trying to get the term “GODL” to catch on :)
LOL. Very good!
Well said! GODL GODL!
Lots of margin longs on Bitfinex got rekt when bitcoin went under $7k, but also a lot margin shorts have built up, which means there will be a short-squeeze at some point.
Hi Max and Stacy! I totally agree, gold looks extremely bullish at the moment, fundamentally (stocks crashing) and technically (triangle) as well. Since I am all in in BTC the previous crash was quite stressful, since I have to pay all my expenses with BTC, so I am forced to sell for living for a very bad price (I am not in trouble, but it is frustrated to trade against your vision / sell for these prices).
I learned from this cycle and created an investment protocol how to allocate my income in the next cycle to BTC and gold using the Mayer Multiple:
https://steemit.com/bitcoin/@michiel/diversification-protocol-no-stress-in-a-bear-market-always-funds-for-living-money-on-the-sidelines-to-buy-cheap-update-every
This way I will have accumulated a shitload of gold before the crash in the next cycle, what I expect to be around 100k (just an expectation) and be able to live off this through the bear market and invest it partly back in BTC around the bottom.
What do you think? Enjoy your time there!
The metals will have their day, thanks mike
wait on may, june uranus is going to move into taurus = finance, commerce.....sudden stock market correction and recession on horizont. last time uranus was in taurus for 1928-1935, uranus is in fall for taurus.
I'm a gold/silver fan too. Its looking interesting this year. Crypto should recover soon after everyone that got fingered by coinbase pays their taxes. Thanks for the analysis Stacy!
Agreed: crypto profits should be eyeing other alternatives for diversification. Primarily, those within the commodities space, and for those who need some insurance, gold and silver.
Great information. Puerto Rican food is really good. I miss the "mofongo" with shrimps.