Dow Jones Vs. BTC Charts, What Now?
Here is a side by side view of the DOW and BTC.
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While I think when the DOW is low people aren't so free with their money and investing because people are fearful. However, I think that the Crypto Market will recover faster than the DOW. The Crypto market is a world market, China, South Korea and India play a huge part of it.
While Bitcoin just had a decent bounce off of the RSI "Over Sold" line and we are back inside the Wedge for the moment, I am not convinced that this down trend is over just yet.
While the market seems bleak, there is still opportunities to make money. I took a Verge (XVG), position a few days ago when it was $0.028, and now its around $0.063 that's 123% gain in a few days. I am not trying to brag here, I am trying to show you that these Bleak times are when fortunes are made. I also added to my Cardano position at $0.14 and now it is at $0.17, not a huge gain but a gain. I wish I bought more Vechain and WanChain during the dip. Now what am I going to do with these gains I just made, hold or sell for profits? Well I an not going to sell now, but I will sell when Bitcoin rises again. While sometimes I do a bit of day trading, I am more of a swing trader. BNB is the reason I like to hold things for a while. You want to talk about 20/20 hind site, I once spend $2,000.00 on BNB when it was $0.16 but I sold out when it hit $3.00, today its $12.51 and it has been over $20.00. This is not the only bone headed move I have made but one that I kick myself over.
While writing this article Bitcoin's RSI momentum has turned over and seems to be headed back down, but it is still my believe that we have to dip below the RSI line not bounce off of it before we get a string bounce to the Bullish side.
Homework Assignment
- Open up Trading View BTC/USD https://www.tradingview.com/symbols/BTCUSD/.
- Click on interactive chart, (on the right side about half way down the page).
- Click on Indicators (on the top, near center).
- Type in RSI and select it as an indicator.
- Click YTD on the bottom of the page.
- Start scrolling to the right ether by dragging the screen or use the left arrow (Bottom Center).
- Look at how when the RSI dips below the bottom line how it tends to want to shoot up.
- Comment on here of your findings.
I am not a financial Advisor and this is not Financial Advice, invest at your own risk.
Thank you so much for sharing,
My pleasure, thanks for visiting hun.
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Comment by @killerwhale. This is a opt-in bot.
I was just looking at this same thing today, I feel very uncomfortable with the amount of apparent correlation between crypto and wider stock markets.
At an institutional level, when market volatility rises, portfolio managers swap to 'risk-off' techniques to control the exposure of their portfolios to downside risk, this involves selling risky assets. With the increasing prevalence of investment bank and hedge fund money entering the space, I believe we will see crypto turn into a cyclical asset. What I am implying is that the price we pay for massive bull runs will be the huge sell-offs that happen when the wider stock markets become afraid.
I am not implying that this will be the case simply because I want my economic work to become more relevant, I would rather crypto become a hedge to the markets, but unfortunately this doesn't appear to be the case so far.
The good news is that economic conditions still look powerful and I think we still have a lot more money left to make in the short/medium term.
I agree, and I think Crypto will be a hedge in the years to come, but right now they still see it as the wild west. Yes the economy is still strong, we are seeing a massive correction on both the Dow and Crypto at the same time. However all of the money that poured in to make it run up happen is still here, even it it changed hands, so it will likely run up again when the conditions are right for it.