Using the 21EMA as a guide, one can see clearly that Bitcoin , Bitcoin cash and litecoin are currently below 21EMA, i.e.. while Ripple and Ethereum are still above 21EMA, ie. .
If Bitcoin is indeed the market leader that influences the movement of the other cryptocurrencies, the questions that I would be asking is :
1. Would Bitcoin recover above 21EMA ?
I think yes though I can't say when for sure. The bitcoin day chart tells me that selling is not completely over yet. It is still below 21EMA and the closing is a candle. I would need to monitor its price action over the next few days to see if it rises above 21EMA before making any decision. There is a possibility that it might head further south to 10900 price zone (the 618 FIB Level) before a decent rebound. Alternatively, it can also break out from the symmetrical triangle and rise above 14,584 (above 21EMA) and head towards 16,000 price level (another )
2. Would the other cryptocurrencies follow the path of Bitcoin?
If there exists a realm of positive influence, then is the current price too high to buy ? If yes, that means , one must be patient to wait for pull back before entering the market. Or are we held hostage by the fear of missing out, eager to participate in the market and to do it , whatever it takes!
We’re all in the trading business to generate profits, but it’s the focus on profits that actually makes this harder to do. The next time you’re faced with a move that you missed, remember that it’s the amateur who counts the money while the professional measures the risk. It is the professional who knows that profits are simply a byproduct of good risk management. If you learn to analyze the market in terms of risk, you will be much less affected by the random movements of market price action and focus only on the ones that offer better possibilities. Source : smbtraining.com
If my sharing dampen the mood of those who can't wait to "show hands", selling houses and dogs to get money to bet on cryptocurrencies, then I am sorry for being a wet blanket. But if this sharing can help someone out there from slipping further into the hole and causes more pain, anxiety and financial stress to the family, then I am happy to do so.......
Some good souls that I do not know and met online have freely shared this with me when I was head over heels with trading, thinking I had decode the game and could retire soon in a beach resort sipping away my coconut drink.
Mr Market will award those with patience and have lesser ego who thinks they can beat him hands down. Those courageous one in the past, now and in the future will continue to challenge the Market, each with his own theory and skill sets but the last man standing remains Mr Market.
Learning to control the risks and knowing when to stay away from the game requires practice, emotional management and understanding of how the market works , to a certain extent.
Always use Stop Loss, trade what you can afford to lose, do not borrow, have a life outside trading and most important of all, enjoy what you are doing.
Happy New Year to all and wish you a good trading year ahead !
BCHUSD meanwhile has move above the 21EMA, signalling a bullish move once again, from the low of 12500 , it is now at 15094 .