Digital Assets continue to show their draw as a risk asset as price gets hit after the reemergence of tariffs from the USA. Equity markets initially were down but recovering well as of this time. Bitcoin has pulled back from a new all time high pulling the rest of the crypto space with it but in reality it’s not a major pull back.
This is where you should be above in an emotional sense. There is nothing to trade at these levels, there is some noise and backwards and forwards but this is the time to sit back on one’s hands and wait for the next genuine move or driver for digital assets. As previously, if I was flat I would be x bid for Dogecoin for a clip, the broad crypto space is bid and fundamentals are wracking up well. Do I think we will trade down below 16 cents, it’s looking unlikely! Is it possible, of course it is but momentum wise we are looking north.
If you were excited by the bull run and now thinking what has happened, this was not part of the plan, this is markets and how they trade. Right as everything lined up fundamentally and technically to drive north is when often people can get caught out with a pull back. Weak longs as we term them may panic out of their position with this pull back but there is absolutely no need to do that. If you are entering at right levels in the right size you will not be spooked by these type moves.
If we look at the chart below, we see the bottom trend line shows a strong base, which is where my previous calls for getting long are, the top trend line is the breakout zone which is where we now have resistance after the previous sell off. Hence the call to consider offloading some at 26 cents in my previous post but holding some for the run north.
Any questions please send a message and remember the redacted levels here for free subscribers are given to paying subscribers.