Different trajectories, same price, and same attitude — move slowly
Last time bitcoin hit £7.2k ($9.8k) was on Monday, March 12th, right after what we called a seemingly relaxed weekend. Back then, bitcoin had been trading sideways for the previous month. We wondered if that signalled the beginning of the third leg of the major dead cat bounce experienced in the first quarter of the year — and so it happened.
The narrative now seems different. Increasing trading volume seems to signal renewed interest across the cryptoassets’ board. Institutional investors keep piling in and we pose yesterday’s news that Goldman Sachs is joining the bandwagon didn’t come as a surprise to anyone mildly invested in the field — except for the man buns, of course.
As FOMO starts to kick-in again, we recommend planning out your strategy ahead of time and sticking to it as much as possible. Remember to keep your ‘adaptive’ caps on; even though most sentiment is turning bullish, some are still calling for £3.7k ($5k). Despite the implausibility of that target, that was exactly what happened back in 2014.Lastly, don’t forget the best way to learn is to do your own research and have conviction on your findings.
Ether also hit its highest price point in USD terms since March. Additionally, it has also hit its high in BTC terms since February. It’s now sitting at ($780) after appreciating more than 7% over the last day. Maybe the fact Reddit’s co-founder ‘mistakingly’ claimed ether would reach £11k ($15k) in 2018 — where in fact he meant £1.1k ($1.5k) — had something to do with it.
As bitcoin also gained 4%, investors likely sold some of their alternative cryptoassets into these two leaders and thus, prompting the top 100 projects to move less than 2% on average. Nevertheless, alts are continuing their bullish march , with Loom — a DApp scaling solution — gaining over 100% after being added on Binance, a popular alt exchange, this Wednesday. Even IOTA climbed 25% in two days after announcing its IOTA Ecosystem.
However, ether may be the catalyst as everyone is following the best developer updatesat EdCon, the ‘European Ethereum Development Conference’ that finishes tomorrow. You can watch the livestream here. Alternatively, if you’re feeling groovy this Friday, check out Vitalik Buterin and his fellow Ethereum developers busting out their dance moves. Healthy celebration or ‘bitconneeect’? Some already say casinos are really boring now!
The most important thing to do this weekend is to follow ether’s price in anticipation of Monday’s CTFC and SEC meeting. The second is to check ‘cryptoTwitter’ for sentiment. Remember it isn’t clear if any decision will be announced, however, look out in case any information is leaked.
The third most important thing to do this weekend is to review the timing of your investments, especially if you feel you are always late to the party. Here’s an interesting indicator with high strike rates that can be used to time the next alt cycle.
Lastly, the most important thing you can do anytime is to keep learning. Note these ICO scam patterns, test new tools that can show you more accurate pricing information, and ensure you don’t let your friends “add needless tokens to their projects”
Sometimes it’s important to go back to basics. During EdCon, an informal event tried to discuss the ‘philosophical side of Ethereum governance’ — check out EIP0’s twitter moments.
Sometimes it’s important to take a step back. See this slide deck on the ‘state of the Blockchain’ in Q1 2018 — in brief, “builders over speculators”.