As these words are being typed, it seems Bitcoin wants to rally and ethereum is looking weak. This proves the wisdom of waiting for confirmation before executing a trade. Readers of yesterday’s column will recall that I ended by saying I was prepared to buy ethereum and/or ethxbt, but suggested I would wait for confirmation. As of now that confirmation has still not come.
In fact, there are few concrete signals (that I can see) to indicate which way these currencies are going to break, so I for one will wait on the sidelines until a trend asserts itself.
What might constitute a CLEAR AND UNAMBIGUOUS SIGNAL? In bitcoin’s case a close above 750 would be strong evidence that the next leg of a rally was underway. But for those not willing to wait that long, a close above the 1×1 (blue line highlighted by blue arrow) in this 2-hour chart would be an indication that a sustainable rally might be in the works.
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
Image from Shutterstock.
Last modified: March 4, 2021 4:52 PM