ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Bitcoin versus the U.S. dollar
Bitcoin Price Failure In late May, a “price failure” in Bitcoin (BTC/USD) sent me to the sidelines. I decided to retreat to wait for a breakout and accumulate a new position on the way up. Two months later the moment arrived. The U.S. dollar (DXY) broke down and Bitcoin broke out. As a result, I … Read more
I often use Google searches to understand the context for trading in Bitcoin (BTC/USD). I formalized this strategy into the Google Trends Momentum Check (GTMC). Consistently, Nigeria tops the list of countries with Bitcoin searches. A recent article in Bitcoin.com titled “Nigeria’s Foreign Currency Crisis Boon for Bitcoin: Country Tops Wallet Downloads Ahead of the … Read more
Two weeks ago, I examined the sharp pullback in Bitcoin (BTC/USD) and concluded that the cryptocurrency was taking a refreshing pause ahead of the next breakout. The breakout is here. This breakout is a double bonus as it represents a bullish (upside) resolution to a Bollinger Band (BB) squeeze. Such breakouts are tradeable with well-defined … Read more
Trees do not grow to the sky – even cryptocurrency trees with Bitcoin leaves. The old adage describes a core rule of the physics of price momentum. Whether buying or selling, traders and investors eventually exhaust themselves – whether existing resources are too low to maintain buying pressure or motivated sellers finally run out of … Read more
The U.S. Dollar Index Breaks Down The U.S. dollar broke down last week. The weekly chart below shows the U.S. dollar index (DXY) closed last week at a near 2-year low. Numerous anti-dollar bets are gaining fast thanks to the U.S. dollar’s breakdown. The cryptocurrency Bitcoin (BTC/USD) is joining the party. Bitcoin joins the anti-dollar … Read more