Welcome back everyone to this week’s edition of my Bitcoin - Forex Combo Strategy. I think Bitcoin traders and investors should gear up for more downside as the series of lower highs which I have pointed out several times over the summer months continue to rally bears and reject price action. It is now safe to state that the $8,870 - $9,927 area is confirmed as a resistance level which could see Bitcoin move back into its support area between $6,380 - $6,550. I remain long-term bullish on Bitcoin, but I think our patience will be tested over the coming months. I am also monitoring the development when it comes to national digital currencies that I mentioned in my post titled “Bitcoin - Forex Combo Strategy: National Digital Currencies”.
The most active Bitcoin futures market, BitMEX, saw trading volume plunge to a 2019 low and clocked in just above $40 million. Over the summer months, when Bitcoin was reaching new 2019 highs, trading volume exceeded $1 billion on numerous occasions. The loss in volume is a bearish development and could push BTCUSD below the $8,000 level. Bitcoin is leading the contraction in trading volume across the entire cryptocurrency market which saw volumes plunge by roughly 40% as compared to its average weekly volume above $100 billion.
One of the earliest supported of the now failed SegWit2x hardfork attempt, Bobby Lee, has published a series of tweets where he regretted his support. Lee noted “2 years ago, I thought SegWit2x was the best path forward for Bitcoin. I‘ve since come to realize that it was extremely dangerous & irresponsible to push for a contentious hard fork w/o replay protection, esp. when there wasn’t consensus. Mea culpa! Bitcoin is the real Bitcoin.” This led to the creation of Bitcoin Cash and Lee added “In Bitcoin, there’s the notion of consensus where the majority of hash power decides on the real chain. Similarly in our world, the market decides on the real Bitcoin, the one with the most market value.”
It is not all bad news for Bitcoin, from a fundamental perspective, bulls should have reason to attempt a breakout. One clear sign that Bitcoin is spreading can be found in the amount of Bitcoin ATMs globally. According to CoinATMRadar, there are 6,004 Bitcoin ATM installed with 65% of those located in the US. November alone saw 108 new machines becoming operational. On average, 11 new machines are added to the growing network every day.
I made no changes to my cryptocurrency portfolio which extended its losses as the cryptocurrency market lower continues to deflate. I currently hodl 1,000 Bitcoins at an average entry price of $7,950, 60,000,000 Ripple which carries an average entry price of $0.3015, and 40,000 Litecoin with an average entry price of $66.00. The three charts below show my Bitcoin, Ripple, and Litecoin holdings.
I also kept my 250 lots long Gold position which I took on October 18th 2019 at $1,485.00 for a margin requirement was $372,798 with a pip value of $250. I am planning to add another 500 lots if the price drops to around $1,400, once again patience is key here. The chart below shows my open Gold position.
On November 12th 2019 I took a 500 lots short position in the AUDNZD at 1.0810 for a margin requirement of $68,194 with a pip value of $3,201.95. I acted on this trading recommendation “AUDNZD Fundamental Analysis – November 12th 2019”. I closed this position on November 14th 2019 at 1.0635 for a profit of 175 pips or $560,341. On November 15th 2019 I took a 500 lots USDCAD short position at 1.3250 for a margin requirement of $100,000 with a pip value of $3,829.39. You can get the trading recommendation at “USDCAD Fundamental Analysis – November 15th 2019”. The two charts below show my closed AUDNZD trade and my open USDCAD position.
Here is the summary of my Bitcoin - Forex Combo portfolio: I hodl 1,000 Bitcoins worth $8,398,400, 60,000,000 Ripple worth $14,988,000 and 40,000 Litecoin worth $2,324,400 plus a total cash portfolio worth $6,161,232. Also, I have the following positions in my forex portfolio: a 250 lots Gold long position worth -$302,202 and a 500 lots USDCAD short position worth $222,540. My total Bitcoin - Forex Combo portfolio is worth $31,791,370, down $843,969 from last week’s value of $32,635,339 and off of my all-time which stands at $34,799,502. Are you ready to grow your account? Take your first step now, open your own PaxForex Trading Account today and follow my Bitcoin - Forex Combo Strategy! Comment below with any questions you may have and I will be happy to help you get started!
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