Welcome back everyone to this week’s edition of my Bitcoin - Forex Combo Strategy. Bitcoin just recorded its 4th best day ever! Volatility returned to Bitcoin and the cryptocurrency market this week, prices first slumped to below $7,300 and then spiked to above $10,300 as Bitcoin surged 42% before retreating. Spoiler alert, I did add 500 Bitcoins to mu hodling position; finally and at the right price! We have retreated from the peak, but I think there is more upside to follow after Chinese President Xi ignited Bitcoin. Don’t forget that in 2017 China banned cryptocurrency exchanges and there were rumors that mining would be banned as well.
Chinese President Xi stated “We must take the blockchain as an important breakthrough for independent innovation of core technologies.” While many Bitcoin enthusiasts read this as “Buy Bitcoin now!”, it is important to noted that President Xi referred to blockchain and never mentioned Bitcoin. In any case, this is a very bullish development which has filtered through to the cryptocurrency market and may provide the wake-up call price action needed in order to close in on its 2019 high shy of $14K. Please not that depending on where you get your price from, the value is very likely to differ.
I mentioned it above, and I will stress it again. President Xi did not endorse Bitcoin and many have misread, misunderstood or simply don’t know the difference between blockchain and Bitcoin. While Xi did mentioned blockchain as vital for the smart cities of tomorrow, this doesn’t mean that Bitcoin will be part of this. Xi did endorse blockchain for the use in big data, which is on the opposite side of where Bitcoin is. Since traders tend to ignore the big difference between blockchain and Bitcoin, the misinterpretation of Xi’s comments may just be enough for the next bullish wave in the cryptocurrency market.
The Standing Committee of the 13th National People’s Congress in China added to President Xi’s Bitcoin Pump by passing a cryptography law earlier today which will take effect on January 1st 2020. The proposal reads “Clear guidelines and regulations are needed to evaluate commercial cryptography technologies used in the major fields related to the national interest as the current ‘loose’ system is not suitable for the industry anymore.” This could be the first step by China to accelerate the use of blockchain technology and become a leader in this space.
On October 23rd 2019 I finally added 500 Bitcoin at $7,400 to my existing 500 Bitcoins. I mentioned during last week’s update “Bitcoin - Forex Combo Strategy: Bitcoin Nears Half-Life Expectancy of Fiat Currencies” that I am eyeing the support zone between $6,380 - $6,550, but Thursday’s plunge was enough for me to pull the trigger. I now hodl 1,000 Bitcoins at an average entry price of $7,950. I also have 60,000,000 Ripple which carry 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 keep my 250 lots Gold position which I bought on October 18th 2019 at $1,485.00 for a margin requirement was $372,798 with a pip value of $250. On October 22nd 2019 I sold 250 lots in the GBPCAD at 1.6950 for a margin requirement of $64,145 with a pip value of $1,914.70. On October 25th 2019 I closed this trade at 1.6750 for a profit of 200 pips or $382,940. I acted based on this trading recommendation “GBPCAD Fundamental Analysis – October 22nd 2019.” On October 24th 2019 I sold 250 lots in the AUDJPY at 74.300 according to this trading recommendation “AUDJPY Fundamental Analysis – October 24th 2019”, the margin requirement was $34,097 with a pip value of $2,300.88. On October 25th 2019 I bought 250 lots of Silver at 17.750 according to this trading recommendation “Silver Fundamental Analysis – October 25th 2019”. The margin requirement was $225,013 with a pip value of $12,500.00. On the same day I closed this trade at 18.250 for a profit of 50 pips or $625,000. The charts below show my open Gold position, my closed GBPCAD trade, my open AUDJPY position and my closed Silver trade.
Here is the summary of my Bitcoin - Forex Combo portfolio: I hodl 1,000 Bitcoins worth $8,526,180, 60,000,000 Ripple worth $17,160,000 and 40,000 Litecoin worth $2,260,400 plus a total cash portfolio worth $5,170,223. In addition, I have the following positions in my forex portfolio: a 250 lots Gold long position worth $850,548 and a 250 lots AUDJPY short position worth $79,194. My total Bitcoin - Forex Combo portfolio is worth $34,046,545, up $2,450,967 from last week’s value of $31,595,578 and at a fresh all-time high. 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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