Bitcoin market thoughts
As I see the bitcoin climp it way to 2020 I have some thoughts..
My self-preservation instinct says that this uptrend can't be continued. Also, i can see the appearance of a head&shoulder pattern, that is beginning to be shaped. The pattern is not, yet completed, as we can see only the first shoulder and the head. If the right shoulder is about to be formed in the next 8 to 10 hours , i think that we will have a great reversal signal on our hands. We can't be sure about this, or the support level that is going to be tested, but we will have some more clearer info once (and if) the Head&shoulder pattern is fully created.
The next 24 hours will be extremely critical.. Let us see what is going to be...
DISCLAIMER: Neither This post neither the author have the intention on making anyone risk real money. Always do your own research before risk any money and always remember that the final choice is exclusively yours and only yours. Neither this post nor the author can be hold responsible for any loose!
No one can predict the future price of any crypto currency. Unlike owning shares in a company, where you at least have a little knowledge of the company's financial status, projected revenues, and so on, you have none of that when you invest in Crypto. In fact, I think that the word investment as it applies to shares in a company, cannot be applied in the same context to crypto. On the contrary. when you put your money in crypto, it is not unlike placing a bet at a local casino. Anything can happen, and often does. "Investing" in crypto is a gamble at best. No one, and I repeat no one, has a clue as to what a certain crypto will be worth tomorrow. Those who claim to know, more than likely have a vested interest in it, and are simply trying to pump the price up so that they can sell once it does rise.
This applies to every aspect that involves money, profit and lose.
Investing in crypto, or in a company, or even if you invest in your own company(project, or self employed) is always gambling!
The difference is the risk management.
Please don't tell me that you have that much faith in companies share.. I can point out many situations that you are wrong. Not entirely, wrong, but haven't you heard about companies with great financial status have bankrupt to keep your invest money (and the owner has a great time in his/her vecation in Hawaii)
Or stock exchange frauds..
Thank you for your comment. It is a great opportunity for a discussion...
"Please don't tell me that you have that much faith in companies share."
It's not so much having more faith in companies than in crypto, as it is in knowing "how" to read the information you have at hand. More often than not, there are many tell-tale signs of a company not being what it is being promoted to be. The real skill is being able to spot those tell-tale signs so as to avoid such companies. Such skills are acquired over time through a combination of knowledge and experience, which is why seasoned investors / traders nearly always make money regardless of the direction of the markets, whereas the newcomer almost always loses his money (or at least fails to make a significant profit) in such ventures. Good luck!
The "how to read" is the million dollar question in every trade or investment. Indeed, this is a skill and I totally agree with you about this.
The truth is that your previous statement ("No one can predict the future price of any crypto currency. Unlike owning shares in a company, where you at least have a little knowledge of the company's financial status") said to me that you were reject the fact that someone could have profit from cryptos...
(followed you. I like the knowledge trading! )
"said to me that you were reject the fact that someone could have profit from cryptos"
No, No, No, on the contrary! I think there are numerous opportunities to make a lot of money in the crypto markets. My only point was that unlike the info we have available regarding traditional shares in companies, for whatever that is worth, we have a lot less info regarding crypto currencies. Much like trading traditional stocks, I see there are 2 approaches to trading crypto. One is to buy the coin, and hold it in the hopes that it will go up at some point. The other is to seek out coins with quite volatile pricing, and day trade those currencies. I use the latter approach, and find that in the long run, unless a coin really starts to fly, I will make more money than the buy and hold approach. I'm sure we all wish we had bought Bitcoin when it was trading at just a few cents, or even a few dollars, and held it until now. But with more than 2700 coins now available, finding one that will produce similar long term results is not much better than buying a lottery ticket.
"finding one that will produce similar long term results is not much better than buying a lottery ticket."
More luckily is to be struck by a thunder... Five times...
I do like the second approach, too. I like that I am getting involved more, than hodle and wait.