Welcome back everyone to this week’s edition of my Bitcoin - Forex Combo Strategy. What a wild ride we had, but the end result is a deflated Bitcoin which is now struggling to maintain its gains. During my last update, I wrote about the price surge in Bitcoin and you can read all about it in my post labeled “Bitcoin - Forex Combo Strategy: Bitcoin Posts 4th Best Day Ever.” It was the first time Bitcoin rose above $10,000 before retreating and now price action is struggling to maintain the $9,000 level. I am now once gain watching my support area between $8,870 - $9,927 and while this is a large area of support, it remains critical to the next move in price action. Should BTCUSD continue to drop, the next support area is await between $6,380 - $6,550.
It has been just over a decade since the 2008 global financial crisis, which started in the US housing market, wiped over $10 trillion of value from the global financial system. Bitcoin has enjoyed a steady advance since then and while there has been plenty of resistance from governments and regulators, the adoption of Bitcoin and the acceptance of the cryptocurrency market as well as digital assets as an new assets class has ensured that the trend will only increase. Cryptocurrencies, digital assets and especially blockchain technology is here to stay and will play an ever increasing role in the global financial system.
One attempt to tackle volatility was through so called stablecoins, a stablecoin is supposed to be 100% backed by fiat currencies or other hard assets. Tether is the most popular stablecoin and is backed by US Dollar deposits. There has been plenty of controversy and trust issues in regards to Tether, but its trading volume is second only behind Bitcoin and its market cap ranks it the 5th largest in the cryptocurrency market. Tether has often been cited as the course of Bitcoin volatility, but this is more of a myth than reality which was evident by price action studies conducted. The potential launch of futures trading for stablecoins, such as Tether, may suggest that they are not as stable as the name suggests.
At the height of the aftermath of the 2008 financial crisis, the US witnessed 157 bank failures in 2010. This was followed by 92 failures in 2011, 51 failures in 2012, 24 failures in 2013, 18 failures in 2014, 8 failures in 2015, 5 failures in 2016, 6 failures in 2017 and 0 failures in 2018. The trend was good and on the surface it appears that the US financial system has regained its footing. Since October 1st 2000, a total of 556 banks failed in the US and 2019 saw four bank failures so far.
I maintained by cryptocurrency portfolio after adding to it last week. I currently hodl 1,000 Bitcoins at an average entry price of $7,950, 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 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 and my 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. The two charts below show my open trades.
On October 29th 2019 I bought 250 lots in the GBPUSD at 1.2825 for a margin requirement of $64,145 with a pip value of $2,500, I acted on this trading recommendation “GBPUSD Fundamental Analysis – October 29th 2019.” On November 1st 2019 I closed this trade at 1.2950 for a profit of 125 pips or $312,500. The chart below shows my closed trade.
Here is the summary of my Bitcoin - Forex Combo portfolio: I hodl 1,000 Bitcoins worth $9,155,100, 60,000,000 Ripple worth $16,842,000 and 40,000 Litecoin worth $2,309,200 plus a total cash portfolio worth $5,482,723. In addition, I have the following positions in my forex portfolio: a 250 lots Gold long position worth $1,095,798 and a 250 lots AUDJPY short position worth -$85,319. My total Bitcoin - Forex Combo portfolio is worth $34,799,502, up $752,957 from last week’s value of $34,046,545 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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