The real motive lies in my true appreciation and understanding of Blockchain technology and the impact it will have on our planet. The reality is that the world is not quite ready for blockchain in 2017. Its a fantastic idea and great technology but there is no services, regulation, infrastructure to support the industry.
Most of the people investing in this space do not even understand what a smart contract is and when you say the word Satoshi they look at you blankly. This is all signs of a market gone crazy with Euphoria. I stay away from the term bubble… because I dont believe this is a bubble…. this is just natural buying behaviour and typical of this young markets.
The euphoric price rise of Bitcoin as it approaches the 10K level has happened so quickly its almost unbelievable and along the way i have enjoyed some serious profits.
It has left many sideliners with huge FOMO and lots of new investors entering the market to try and get a piece of the pie in a mad rush. Everyday I have new people come up to me and ask how they can “Get In”.
It is not just Bitcoin…
Across the board we are seeing some lofty prices for these crypto assets. I truly believe we will start to see some profit taking. My advice to new players is to use price averaging. Buy small amounts over time to capture any volatility in price. Putting all your eggs in one basket at these prices could see you frustrated for weeks or even months. All my regular technical indicators are showing over bought territory and a natural behaviour of a market is to retrace and consolidate. I would be surprised to see BTC get close to the 10K or even tickle above but this will be followed by a correction. Hence why i will be watching very closely to have my short positions ready. I know i always advise against going short on crypto markets as im long term bullish…. but as a day trader i like to play the movements of the market and a short term bear is as good for profits as anything.
Happy to be wrong as most of my exposure is long term buy!
The short on crypto currency was overall a great idea! Whilst people called me crazy and said i was making a mistake I stuck to my guns and ended up at the right end of the profit train. Now I will re enter and buy up some more long positions over the next few days as the price settles.