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RE: Is This The Bottom For Bitcoin? You decide!

in #bitcoin6 years ago

Very good article!. I was thinking that if you treat trading BTC pairs just like FOREX, then you could make a case more towards what is the 'parity' price of BTC vs what is its 'bottom'.

If you look at the covered interest rate parity condition says the relationship between interest rates and spot and forward currency values of two countries are in equilibrium. ... Covered and uncovered interest rate parity are the same when forward and expected spot rates are the same.

With covered interest rate parity, forward exchange rates should incorporate the difference in interest rates between two countries; otherwise, an arbitrage opportunity would exist.

Now, similarly treat BTC pairs between exchanges: use buy/sell order ratios, price/ROI ratios, ETFs futures data; rather than seeking the bottom of BTC, calculate its Parity.

Using my top 3 indicators:

MACD, BOLLINGER, and ICHIMOKU, I believe Parity to be at Bid 3100, Ask 3170.

So, for less stress and hand-wringing; parity calcs will show where the bottom is, and thus, profit maximization.

--//medianation😀

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