I recently had a change in my daily schedule so I can get out these market reports on a much more regular basis, I am hoping to keep it daily with Friday’s as a more extensive report and analysis before the weekend. That said, there unfortunately is not too much to add from yesterday’s report since price movement has been within the $2 range in the last twenty four hours. There has been an astounding level of market inaction, historically low volatility, and almost complacent sentiment since the price stabilization of the last few months. Honestly I think that low volatility and all the “feel good” news (forthcoming bitcoin ETF, merchant adoption, etc) is good for the long term viability of bitcoin. It will be curious to see how the debate about blocksize will shakedown and if we indeed get an increase. Let’s take a look at the 15 minute chart:
https://cryptowat.ch/coinbase/btcusd/15min
Per yesterday’s report, I hold strongly to my reevaluated neutral trade stance given current market conditions; up, down, and a net flatline over the past day! This neutrality will hold until there is a market breakthrough, support level retracement change, or increased volatility. I rebalanced my traditional portfolio in the last day and the stock market is pretty uninspired as well, a diversified portfolio that has averaged around three percent or so is not anything to cheer about. That said, market participation could increase in the near future and we can all reevaluate that should it happen but speculation does not help anyone here. I mention a breakout and my intuition tells me that it may happen in the next week or so but all this stability between bulls and bears has obfuscated all the usual indicators, so hold tight it is.
Today’s food for thought is “stop-loss order”:
“An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor’s loss on a position in a security. Although most investors associate a stop-loss order only with a long position, it can also be used for a short position, in which case the security would be bought if it trades above a defined price. A stop-loss order takes the emotion out of trading decisions and can be especially handy when one is on vacation or cannot watch his/her position. However, execution is not guaranteed, particularly in situations where trading in the stock is halted or gaps down (or up) in price. Also known as a “stop order” or “stop-market order.””
I am very, very glad that today’s pick is the stop-loss order, it is definitely one of the most useful trading tools available in order to protect assets from unintended losses. It is a tool that can be used in either a long or short position and is triggered on certain market conditions being met, usually resulting in a sell order for a portion or all of an asset class. Not all bitcoin exchanges support this feature but some do and they are immensely useful for something as volatile as bitcoin, though not necessarily recently. Happy trading!
