Loading Up For Long Haul - Gradually getting filled on ethbtc
Updated
This is the most exciting crypto trade for me, scaling out of high BTC prices into eth which has an incredible upside potential for the next bull wave if eth continues to get locked into defi at higher and higher rates.
Right now a record $877 million in eth is locked in defi and it continues to climb each week accelerating upward. It could reach a point where more eth is locked in defi per day than is network generated so price would start to have huge upward pressure.
On this chart I am using the range from the Jan 7 candle as a scale in region and give myself a healthy discount buying eth with btc. Currently it looks like there's a pitchfork driving eth into my buy zone and watching it respond to that will help me to just sit on my trade and not move my scale in points at all.
If ethbtc goes above the top of the "expected box" then I will re-evaluate and look to scale in at higher prices maybe but right now this is a work of PATIENCE.
I plan to hold a lot of this eth for months or years, although I may trade in and out on a swing basis when eth reaches 200 since I think it will have trouble getting past it and it will provide a chance to lower my cost basis a bit.
However most of my accounts are in "long term" mode because I think we're coming to the point where even the most skilled daytrader will not be able to outpace the overall long term swing upward. When BTC starts moving in 10% upward swings per day it will be too late to chase price and you should have already gotten your long term account fills.
Right now a record $877 million in eth is locked in defi and it continues to climb each week accelerating upward. It could reach a point where more eth is locked in defi per day than is network generated so price would start to have huge upward pressure.
On this chart I am using the range from the Jan 7 candle as a scale in region and give myself a healthy discount buying eth with btc. Currently it looks like there's a pitchfork driving eth into my buy zone and watching it respond to that will help me to just sit on my trade and not move my scale in points at all.
If ethbtc goes above the top of the "expected box" then I will re-evaluate and look to scale in at higher prices maybe but right now this is a work of PATIENCE.
I plan to hold a lot of this eth for months or years, although I may trade in and out on a swing basis when eth reaches 200 since I think it will have trouble getting past it and it will provide a chance to lower my cost basis a bit.
However most of my accounts are in "long term" mode because I think we're coming to the point where even the most skilled daytrader will not be able to outpace the overall long term swing upward. When BTC starts moving in 10% upward swings per day it will be too late to chase price and you should have already gotten your long term account fills.
Note
Eth ended up powering away from btc which is really not a bad thing, I've just got some of each. There's still an ABC correction on the day chart vs usd in the works and when it rolls around the ethbtc ratio might come back to the box for this trade.
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