Cryptocurrencies Are Charging Back Again, And Now You Don't Hear Th...

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!