Yesterday we had a Black Monday type sell-off in the Crypto market.
It all started after the Salvadoran President bought Bitcoin, making Salvador the first country to adopt Bitcoin as a legal tender.
Bitcoin hit a four-month high of $52,944 and had an intraday low of $42,830, -19%.
The other cyptos follow suit, $LTC.X intraday loss -27%, $ETH.X intraday loss -23%.
It was an all-for-one, one-for-all type deal; they all got slaughtered.
The Salvadoran President immediately averaged down the minute $BTC.X had a mini flash crash.
Talk about emotion-based trading.
For him, every dip under his cost will now be viewed as a bargain, a buying opportunity, NEVER will it be viewed as I was wrong.
Most new investors and traders nowadays have an all-or-nothing attitude. They put on a trade, and it has to work, it has to go up, and if it goes down, then it’s being manipulated by hedgefunds. There’s no accountability nowadays.
But I digress.
There might be a trading opportunity, at least for me, based on how I view things.
Classic technical analysis is much cleaner on cryptos than on stocks.
The major cryptos bounced right off their 50-day ma. It was a thing of beauty.
I’ll be watching to see if they reclaim their 21-day EMA.
Currently I have a buy stop for the day on $LTC.X, $GRT.X, and $BCH.X above today’s highs; $189.50, $0.8522, $680.30.
You might also like; Is Bitcoin Headed For a Retest.
You can view over 400 of my trades here https://www.tradervue.com/shared/users/8059.