Welcome back everyone to this week’s edition of my Bitcoin - Forex Combo Strategy and a great 2020 to everyone! During my last update “Bitcoin - Forex Combo Strategy: 2020 The Year of Ripple?”, I talked about why I remain bullish on XRP in 2020. Today, I want to take a closer look at Ethereum on which I have been bearish since the start of 2019. Brushing aside the die-hard supporters of the altcoin that introduced smart contracts to the cryptosphere, a breakdown below the psychological $100 level may follow the most recent advance.
Ethereum just completed its second hardfork in 30 days, and while upgrades and improvements are always welcome, the quick succession of Muir Glacier after Istanbul indicates major oversights. Developers have headed for the exits, and less brainpower in the Ethereum blockchain becomes evident. Muir Glacier has been implemented with the mining of block 9,200,000 and most clients have been synced with it. The main focus of this hard fork was to delay the dreaded difficulty bomb, implemented into the code in 2015, by another 4,000,000 blocks.
While Muir Glacier delayed the ice age for Ethereum, it may accelerate the value deterioration as prices are positioned for a sharp sell-off. The ice age refers to an increase in mining difficulty until mining becomes impossible. The ice age protocol is intended to force miners to abandon the old blockchain and move to the new 2.0 upgrade. The idea behind this process is solid, but how many miners will actually move over rather than move away remains to be seen. Mining Ethereum has been unprofitable for most small mining operations throughout 2019, with the outlook for 2020 worsening.
The rally that accompanied the hard fork in Ethereum marks an excellent opportunity to go short. After challenging $140, the next volatile move may be to the downside. I expect the crash to take out the key psychological $100 level from where we may quickly take out the 2019 low. This cryptocurrency pair may stabilize once we reach the $70, or 50% below its current peak. Many hope that Ethereum 2.0 will reignite the enthusiasm that once drove price action higher, I think it will help it drop out of the Top 10 cryptocurrencies by market cap.
I have been writing about the right time to short Ethereum, and today I was presented with what I believe is a great opportunity. I sold 20,000 Ether at $135.00 for a total of $2,700,000. I am looking to add 30,000 more if we move into the next resistance area. I also hodl 1,000 Bitcoins, at an average entry price of $7,950, 60,000,000 Ripples, which carry an average entry price of $0.3015, and 100,000 Litecoins with an average entry price of $52.80. The four charts below show my Bitcoin, Ripple, Litecoin, and Ethereum holdings.
I also keep my 250 lots long Gold position, that I took on October 18th 2019 at $1,485.00 for a margin requirement of $372,798, with a pip value of $250.We have already taken out the 2019 highs, and I am now looking for this precious metal to break out above $1,600. The chart below shows my open Gold trade.
Here is the summary of my Bitcoin - Forex Combo portfolio: I hodl 1,000 Bitcoins worth $7,478,000, 60,000,000 Ripple worth $12,552,000 and 100,000 Litecoin worth $4,394,000. I also have a 20,000 Ethereum short position worth $2,475,000 plus a total cash portfolio worth $2,823,503. Also, I have the following positions in my forex portfolio: a 250 lots Gold long position worth $2,306,548. My total Bitcoin - Forex Combo portfolio is worth $32,029,051, up $3,100,100 from last week’s value of $28,928,951 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 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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