Elon Musk is out like a ground hog talking about Dogecoin AGAIN asking McDonald's to accept "his favorite crypto": "I will eat a happy meal on tv if @McDonalds accepts Dogecoin"... https://www.rt.com/news/547314-musk-mcdonalds-doge-crypto-plunge/
Just crunched some figures again, for those holding off and looking for a confirmation of a correction, the $39000 - $49000 channel is probably the one to keep in mind. I mentioned selling some underperforming stocks and buying Stacks (STX) with it and some NFTs. The price range I'm looking for evidence of a confirmed correction for STX is $1.21 - $1.93. There could be a signal of a correction on the daily chart today.
It's an asset I already own which has a familiar price movement in normal times, it seems to average around the $2.20 mark with regular drops to around $2 then up it goes to $2.40. It may have bounced off support at the $1.20 level. So once I've seen some confirmation of a reversal I'm going to chuck some $$ at it in the hope that it gets back up in the short term. First target $1.93, if it pushes higher that'll be my stop loss and I'll just keep moving that SL up until I exit that position.
Arthur Hayes, co-founder of BitMEX, seems to lean towards BTC still needing to test $28,500 USD and ETH $1,700 USD before a bottom has been formed. Blog was posted on 25 Jan. "$28,500 BTC/USD $1,700 ETH/USD I don’t believe in a bottom until these levels are retested. If the level holds, amazing. This prong has been met. If it doesn’t, then I believe a mega liquidation candle will happen in the $20,000 to $28,500 range for BTC and the $1,300 to $1,700 range for Ether. If either of Bitcoin’s 2017 and Ether’s 2018 previous ATH ($20,000 and $1,400 respectively) are breached on a daily candle, then I don’t even want to think about it. Maybe Bitcoin never breaches $30,000, and/or Ether never tests $2,000. The market never provides a perfect setup. In the absence of a clear test of prior trend channel lows, then things become a bit more touchy-feely. Depending on your ideological view of capital markets, you may look at one or more statistics such as: total open interest on leveraged trading platforms, net on-chain stablecoin inflows into exchanges, growth in the AUM of select exchange-listed products, implied vs. realised volatility levels, etc." Source: https://blog.bitmex.com/bottomless/
I should've said "reversal" not "correction". Looks to be going through the corrective phase with no indication of a reversal yet and no idea of how long it'll go on for so I'm keeping my powder dry at the moment.
STAX update, looking back I missed the reversal, the hourly chart gives a better idea, price was about $1.21 at the time, so for those that jumped on board then it's up 25%. So I learned something. I pulled the trigger yesterday at about $1.48, first target still $1.93.
From a fundamental perspective I expect the market will go through a period of consolidation, maybe a steady rise until March with many players just biding their time awaiting another announcement after The Fed's meeting. My opinion is that The Fed will not announce a rate rise in March, they will continue shrinking their balance sheet however which doesn't mean they'll stop buying securities at all it's they'll just stick to government treasury bonds and ensure that their net asset purchases taper, and that their forward guidance will indicate that the US economy is expected to slow meaning any decisions made in the future will be based upon the economic conditions as they unfold ie there is no certainty that rates will rise or that the tapering program will continue. I think that the coming weeks present an ideal opportunity to steadily accumulate assets.