Chart Of The Day: Buy Ethereum, Pay With Bitcoin
Investing.com | Feb 26, 2018 08:01AM ET
If you Just Need to Buy Crypto
We have been discussing cryptocurrencies frequently as of late due to Bitcoin's trend reversal from up to down. This occurred when, on January 16, the price fell to $9,949.40, posting a new, second trough, lower than the former registered on December 22, with a low price of $10,718. Also, the $12,000 price level (initially a support since the December trough) turned into a resistance since January, confirmed by the February 20, $11,776 peak.
Ethereum is also trading within a falling channel. But what if you are a diehard crytpobull who not only can’t bring himself to sell, not to mention short, but wants to buy? You’re sure that cryptos must rise in the long term.
Worry not, we have a solution for you too. Trade the two together.
You can purchase Ethereum and pay with Bitcoin. That is, you’re buying ETC and selling BTC.
As you can see, the ETC/BTC pair is being traded within a clear rising channel, supported by momentum, which is moving in its own rising channel.
The 50 dma (green) recently crossed over the 200 dma (red), executing a Golden Cross, which demonstrates that the shorter price average (50) is outperforming the longer price average (200). In other words, more recent prices are doing better than older prices. This is considered a bullish signal, since prices, which trend, are expected to resume their present course.
Note that while the 200 dma is joining the 100 dma (blue) in support of the rising channel, the 50 dma is rising to support the prices.
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Conservative traders would wait for a new peak to post above the February 14, 0.004096 price to reaffirm the uptrend.
Moderate traders may wait for a return to the lower bound of the rising channel, where it is expected to find support of an overdemand.
Aggressive traders may wait for a return toward the 0.003022 support area.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
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