In the alt-universe, we looked at both Tezos (XTZ) and Cosmos (ATOM). In both cases, these alts were in the green for the day. We suppose that it is good for those alts, but there may be a catch. They seem to be the only significant coins in the green today. That may mean people are getting out of the rest of the market and hiding in these coins.
Looking at Tezos in particular, $1.33 seems like the top of a significant pennant consolidation formation. If XTZ breaks through that point, much higher prices are possible. That said, the decline in the overall market is not making us want to buy anything on strength.
Bottom Line: There is too much risk that this morning's decline is a repeat of 2018. There is also a risk that the current drop is the mirror opposite of the crypto rally that unfolded near Thanksgiving of 2017. In 2017, the crypto market melted up near Thanksgiving. In the current case, there is a risk of a Thanksgiving decline. Markets love symmetry, and we are not getting in the way if a big down move is starting. Par back positions in alts and take profits where you have them.
Looking at Tezos in particular, $1.33 seems like the top of a significant pennant consolidation formation. If XTZ breaks through that point, much higher prices are possible. That said, the decline in the overall market is not making us want to buy anything on strength.
Bottom Line: There is too much risk that this morning's decline is a repeat of 2018. There is also a risk that the current drop is the mirror opposite of the crypto rally that unfolded near Thanksgiving of 2017. In 2017, the crypto market melted up near Thanksgiving. In the current case, there is a risk of a Thanksgiving decline. Markets love symmetry, and we are not getting in the way if a big down move is starting. Par back positions in alts and take profits where you have them.