Market Dynamics
3rd Apr 2019
The crypto world at this moment is witnessing a huge volatility. In trading parlance, volatility is equivalent to risk.
As many major Cryptos surged from 10% -50% in the past 48 hours, it’s time for bulls to cheer as many of them are getting their old prices back. In the process we are witnessing many long term resistances to be broken and intermediate up-trends are asserting themselves with strong vengeance. This is surely going to have a long term implication. From an era of ‘sell-on-rise’ we have entered into the zones of ‘buy-on-declines’.
The above diagram shows a daily chart of Ether at present. A long term resistance at $160 level has been broken for sure. Should we buy immediately or wait for a correction? Well, this is a function of risk appetite you are willing to accept. While we are not ruling out further journey upwards (in fact, that is our long term expectation: target $220 over longer horizon), but in the shorter term, we do expect further testing of $160. The erstwhile resistance should now act as support.