I've written before about the monthly HIVE price spikes that were occurring through part of 2021. Last month I pointed out that a HIVE price spike from June 26 could be a sign that these monthly price movements have returned and based on the trading activity in HIVE over the past 12 hours, I think it's safe to say that this trend is back.
The June 26 price spike happened to be the last Monday in the month of June. Today's price spike in HIVE is occurring on the last Monday in the month of July.
I still haven't been able to figure out what the reasoning is for the Korean exchanges to suddenly see this huge demand for HIVE on these specific days of the month, but the same trend occurred in 2021. The best I can do is trade it!
Based on what happened last month, I expect these price spikes to continue for another day or two and they usually occur around 9am in Korea.
Concurrent HBD Price Spike
I am kicking myself for missing this massive price spike in HBD overnight. Sleeping cost me many thousands of dollars last night! The price of HBD soared to over $3. This is much different than what happened in June as there was not an HBD spike last month. This could also be causing part of the price increase we are seeing in HIVE and people sell their HBD in exchange for HIVE.
There is a risk that this HBD spike is the sole driver for the HBD price increase and that it is not a continuation of the monthly HIVE spike trend from 2021. The next 24 hours should prove this theory one way or another.
My Trading Plan
I have sold the last of my non-savings HBD to buy HIVE (around 0.43 cents each) and will be awaiting another HIVE price spike on Tuesday, June 26. If that next spike does occur, I'll enter into HIVE to HBD transfer orders to try to capture the HIVE price spike and also get into HBD at a cost of $1 each. If HBD falls back to $1, then I'll just do market purchases to sell my HIVE and buy the HBD, which will eliminate the 3.5 day price change risk associated with a HIVE to HBD conversion.
This strategy proved very profitable in 2021 as I traded in and out of HIVE and HBD with those monthly price spikes. I'm hoping it will become a consistent pattern in 2022 now too!