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Hazardous Waters

This is a syndicated repost published with the permission of Slope of Hope – Technical Tools for Traders. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Regarding crypto, I hate coming off as capricious, but allow me to defend myself with Exhibit A. Specifically:

The above is an intraday chart, over many, many weeks, of Ethereum. I think we can all agree that trading inside the yellow zone is a total snap compared to the blue zone, which has been kind of a nightmare. Just in the past few days, right when you think it’s starting to shake off the blues (both literally and figuratively) it flops over again in a flaccid heap.

My overarching concern is the bigger picture; if we look at the same range of time for Bitcoin, it looks dangerously like the threat of a big top is almost in place. I don’t like the looks of this.

Just to add to my love/hate relationship with crypto, take a look at Litecoin, which is literally the ONLY coin I’m still holding on to right now. The graph below only spans a few hours, and the insane rise and fall spans literally minutes.

I seriously started my dog walk, was puzzled to see my equity grow so quickly (I was looking at the account balance, not the chart) and just as puzzled when I finished the walk that it was all gone! I have no clue what happened, but judging from the volume, it was something freaky.

Anyway, on the love/hate thing, I’m kind of back to hate (well, at least annoyed) at this point. Simply stated, I don’t think we have a solid foundation. It seems more like quicksand to me right now.

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