Welcome back everyone to this week’s edition of my Bitcoin - Forex Combo Strategy. So Bitcoin extended its slide and is now trading below $9K once again, this should not be a big surprise as the rally was caused by a misinterpretation and therefore bound to fail. Price action is now trading below my resistance area between $8,870 - $9,927 which is adding more bearish pressures to BTCUSD. I think we may drift lower as the year closes and my next support area is located between $6,380 - $6,550. I am a buyer of Bitcoin below $9K, but those who are still waiting, be patient.
While developed economies were fighting hard against the adoption of cryptocurrencies, and in some cases continue to fight with very few exceptions, emerging and frontier markets have adopted the cryptocurrency market and are exploring ways to implement the blockchain technology which enables it. Economies, especially with fragile currencies and ultra-high inflation, are launching digital national currencies or e-currencies of their national fiat currency. This represents a significant step forward, although so far only smaller economies have taken this step.
The tiny Pacific Island nation of Marshall Islands will less than 60K citizens, passed the Sovereign Cryptocurrency Act of 2018 and shortly thereafter issued its national digital currency. The Sovereign or SOV as it is called is accepted as the official legal tender in the country alongside the US Dollar. Israeli start-up Neema will develop the Sovereign and the Marshall Islands plan to raise $30M through a crowdsale, half of which will go to Neema and cover the development costs. Tangem, the Blockchain smart-wallet provider, announced a partnership with SOV to produce physical blockchain banknotes. How many more countries will follow?
In 2015, Tunisia became the first country to issue a state-backed digital currency. The e-Dinar runs on the Universa blockchain and is backed by fiat currency. Universa will receive a percentage of each transaction in the e-Dinar while the ledger will be visible to the Tunisian central bank. Universa’s CEO added “Digital banknotes cannot be counterfeited, each banknote is protected by cryptography like its paper counterpart has its own digital watermarks. Furthermore, the production of such a banknote is 100 times cheaper than wasting ink, paper and electricity in the printing process.”
I made no changes to my cryptocurrency portfolio which took a beating as Bitcoin led the cryptocurrency market lower. 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. On November 5th I added a 500 lot short position in the AUDJPY at 75.300 for a margin requirement of $68,194 with a pip value of $4,601.76, to my existing 250 lots short AUDJPY position which I took on October 24th 2019 at 74.300 for a margin requirement of $34,097 with a pip value of $2,300.88. On November 7th I closed my 750 short position at 74.700 for a profit of $184,071. I did not add new trades to my forex portfolio this week, but am scanning the market for trading opportunities next week. The two charts below show my open gold position and my closed AUDJPY trade.
Here is the summary of my Bitcoin - Forex Combo portfolio: I hodl 1,000 Bitcoins worth $8,808,300, 60,000,000 Ripple worth $16,002,000 and 40,000 Litecoin worth $2,409,600 plus a total cash portfolio worth $5,700,891. In addition, I have the following positions in my forex portfolio: a 250 lots Gold long position worth -$285,452. My total Bitcoin - Forex Combo portfolio is worth $32,635,339, down $2,164,163 from last week’s value of $34,799,502 which remains the current all-time high. 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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