For those of you following along, we are now setting ranges across a variety of our favored investments after the 3rd higher low has been marked.
This is based on our understanding of the broader macro environment, as discussed in our crypto trading series. Basically two main things are happening now:
1. BTC as the flag bearer of crypto is finding room to run against USD.
This is because the whole system sucks, not just the USD. The USD is actually getting stronger against other currencies, although that has room to move around as geopolitics happens, our theory states that all fiat currencies will gradually see their value slipping away in terms of bitcoin. This same phenomenon should be seen with gold and silver as well.
2. Alternative crypto projects are finding increasing room to run against BTC.
While more volatile, this stems from the creative forces of different projects as they move money and code around to try to be innovative. The pool of interested money is increasing, and thus ALTS will increase their volatility against BTC (but will constantly need to show their worth, as the market can be brutal)
HIVE/BTC
We have even been successfully trading HIVE on a higher low set up since the breakdown at the end of last month. HIVE seems to have decided on its floor (at least locally) around the time we were posting it might not have one.
LTC/USD
Taking a look at LTC vs USD, one of our favorites, we can see the same situation as hive is facing against bitcoin. Higher low set up as the world slowly wakes up to the realization that there is something funny about the money.
XLM/BTC
Taking a look at STELLAR (XLM) against BTC, we cannot yet confirm higher lows, but it finally was given some room to open up back into the 700s.
Each project must stand its own ground in the market, based on its worth. But with our simplified understanding above, we can start to draw lines and make some assumptions.
This isn't advice, its History, our observations.