As we enter 2021 I think its safe to say that the scepticism is gone. We are all believers, and that’s not an opinion, as a technical trader I’m looking at the facts.
A year ago today the price of bitcoin was slightly over $8000. Today we’re looking at over $40000!! The first boost came from learned academics and financial authorities confirming the validity of this new financial instrument. When the business leaders, CEO’s and recognized players in the financial world jumped on board there was no turning back. And regulated global brokers are now reporting that trading volumes in the crypo segment is growing exponentially. From a technical trader’s perspective, the learning curve is a steep one as daily records are being set as the demand hasn’t let up, particularly since the 3rd quarter of 2020. The volatility and daily swings are extreme and there are no levels which allow us to look at past performance – the basis of technical analysis. However the opportunities are there and we now have to learn to adapt our proven strategies to this new financial instrument. Whether this instrument proves to be a new safe-haven, or whether we see prices collapse, conservative and discipled strategies will present us with new and exciting trading opportunities in the new year. Remember, successful traders are educated traders. Learn. Practice. Trade.