Don't listen to the BS!
In the last few days and up until now, you sure have read lots of articles screaming big titles such as "Non-stoppable Cryptocurrencies Are Finally Stopping," "Bitcoin Is Crashing | Zero Hedge," "Bitcoin and Ethereum dropping: Here's why cryptocurrency prices are crashing right now;" or the more subtle one like this: "Will Ethereum crash?" And of course the bold ones like "Cryptocurrency Is A Bubble - Forbes" and "Three reasons to fear the coming crash in bitcoins - MarketWatch." Those are from the 'highly respected' websites/companies.
To all of them, I say "Fucking bullshit!"
This is why you don't have filthily rich reporters, consultants, advisors, or even 'analysts.' Why? They only see the reactions and are short-sighted, and they believe that all of you have only short memories. They play with their, and your, emotions!
But any good trader knows that the success of trading depends largely on controlling your emotions, not by hyping them.
So if you listen to them, you will lose money.
Linear Charts vs. Logarithmic Charts:
Here is the latest US dollar price chart of BTC, on a linear format.
Most of the articles and blogs use linear charts. From such a chart, the recent $900 drop looks huge.
Now, please take a look at the same chart on a logarithmic scale (commonly known as 'log scale' in the trading business):
The 'crash' doesn't look like a crash at all!
That is because a logarithmic price scale is plotted so that the prices in the scale are not positioned equidistantly; instead, the scale is plotted in such a way that two equal percent changes are plotted as the same vertical distance on the scale.
A linear scale puts emphases on the dollar-to-dollar point changes while a log scale cares more about the true percentage change of the prices.
If you are a short-term trader, use a linear chart. But a long-term investor should pay more attention to the log charts.
BTC:
See the log chart (2nd chart) above, BTC prices in the past three (3) weeks are trading at the historical-high level. While it is clearly over-extended, but there's no sure way to tell when it will fall back to the trend line I drew along the weekly close lows. If you are trading, the daily, even hourly, high volatilities give you plenty of trading opportunities. But that is another subject.
For long-term investors, buy it whenever it comes back to the long-term trendline, below it if you are lucky!
ETH:
Same as last week, another 'crash' is still likely and healthy. I am still a raging bull. Buy whenever there is a 'crash' or at/below the trendline!
XRP:
XRP is going up in the last 5 days, but I still have no idea where the entry points are at this point.
Previous Post In This Series:
Stop Panicking! BTC, ETH and XRP Price Action Updates & Ongoing Thoughts (#8)
BTC (All-time High), ETH (All-time High) and XRP Price Action Updates & Ongoing Thoughts (#7)
Ethereum Will NOT Fail and BTC, ETH and XRP Price Action Updates & Ongoing Thoughts (#6)
Bitcoin (BTC), ETH and XRP Price Action Updates And Ongoing Thoughts (#5)
Bitcoin and ETH Price Action Updates And Ongoing Thoughts (#4)
Bitcoin and ETH Price Action Updates And Ongoing Thoughts (#3)
Hope Bitcoin Price to Drop More... (#2)
10 Months ago, When Bitcoin Was About $665, I turned bullish. (#1)
bitcoin goes to US$50,000 - 1,000,000 in 10 to 20 years! (#0)
Please upvote and follow! Thanks!
thanks for this post
Thank you, @parker.hammer!
I'm not very impressed by the Ethereum networks congestion today with the Status ICO. Scalability seems like a huge issue still.
Thank you, @steveo for your comments and for bringing this to our attention! Such a scalability issue is beauty in disguise for the early adapters/investors. I am sure when an issue is noticed, the bright minds are quick at work to fix it!
Nothing is crashing until SEC or someone else starts regulating ICOs. Or Ethereum network actually suffers major crash which is a possibility.
Thank you, @eviljedi! I dare to say, even if all of the above happened, a crash happens, but a few years from that, it would have looked like a great buying opportunity.
Ethereum network scaling issue is the biggest one they are facing right at this moment. The actions are required now or noone will remember Ethereum in a few years.
Appreciated
Nicely written
Technical Analysis is key of financial markets
Thank you, @cryptocharts! You're right. Technical (quant) analysis is the key, plus the unwavering fundamental facts.
XRP needs to bust that 33 area, then 43, then off to the races I think. This sector is just getting started, hard to even guess the potential of how high we can go.
I penned this article on Ripple moving higher you may find interesting pertaining to the cryptos, money, etc. https://steemit.com/cryptocurrency/@motowngold/as-predicted-ripple-is-making-a-nice-bull-move-higher
Thank you, @motowngold for your comment and post! A great read!
Your welcome, and keep the charts coming!
I sure will do!