Welcome back everyone to this week’s edition of my Bitcoin - Forex Combo Strategy. In my last update titled “Bitcoin - Forex Combo Strategy: Bearish Trend Keeps Bitcoin in Check”, I pointed out that more downside in Bitcoin should be expected. Friday’s price action crashed through the $7K level and almost approached my next support area between $6,380 - $6,550 before retracing back above $7,200. Volatility is here to stay, but what’s next for Bitcoin and cryptocurrency markets that are hovering around six-month lows? I think we can move to the low end of my support area where I would recommend buying Bitcoin to anyone who remains on the sidelines but wants to get in.
Bitcoin is hammering most of the cryptocurrency market and then there is Tezos, also known by its ticker XTZ. Since October 24th 2019, Tezos rallied from a low of $0.7513 to a high of $1.33 which was recorded in the past 24 hours. That’s an advance of over 77% in roughly a month. I think Tezos is a perfect example that a great product will find support even in the toughest, general market conditions. Coinbase added XTZ and the greater accessibility added to a surge in volume which pumped up the price.
Adding to the appeal of Tezos is the lack of direct correlation to Bitcoin. It, therefore, offers a great trading asset to hedge against Bitcoin trades and marks an excellent diversification tool for active cryptocurrency portfolios. 30% of Tezos trading volume is against Tether, often falsely accused of moving Bitcoin, with another 27% against the US Dollar. I can only recommend that investors and traders alike keep an eye out for Tezos, there are great things to come and we can easily see a price push above $5.
Many prefer to make comparisons between Tezos and Ethereum or rather highlight the distinct difference between the two. As you all know, I have been extremely bearish on Ethereum for quite some time and continue to be. TRON, Binance and now Tezos are all much better options and developers are flocking to non-Ethereum based projects. One of the biggest differences and advantages of Tezos over Ethereum is governance. Ethereum is essentially controlled by the Ethereum Foundation and developers. Tezos implements what is known as on-chain governance and stakeholders can vote on proposals offered by developers. Another benefit is that developers are rewarded if their proposals are implemented.
I added 60,000 Litecoin at $44.00 to my cryptocurrency portfolio which has contracted together with the sell-off in the cryptocurrency market, and I expect more pain before it will stabilize. 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 100,000 Litecoin with an average entry price of $52.80. 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. My 500 lots short position that I took on November 15th 2019 at 1.3250 for a margin requirement of $100,000 with a pip value of $3,829.39 remains unchanged, but I am looking for a second short-entry opportunity above 1.3350. On November 22nd 2019 I sold 500 lots in the EURJPY at 120.250 for a margin requirement of $110,150 with a pip value of $4,603.03. I acted on this trading recommendation “EURJPY Fundamental Analysis – November 22nd 2019.” The charts below show my open Gold, USDCAD, and EURJPY positions.
Here is the summary of my Bitcoin - Forex Combo portfolio: I hodl 1,000 Bitcoins worth $7,281,000, 60,000,000 Ripple worth $12,942,000 and 100,000 Litecoin worth $4,790,000 plus a total cash portfolio worth $3,411,082. Also, I have the following positions in my forex portfolio: a 250 lots Gold long position worth -$208,952, a 500 lots USDCAD short position worth -$91,470, and a 500 lots EURJPY short position worth $335,608. My total Bitcoin - Forex Combo portfolio is worth $28,459,268, down $3,332,102 from last week’s value of $31,791,370 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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