Please click the link to listen to the 33rd episode of my weekly crypto podcast ‘Two Minute Crypto.’ These are intended to be short, single-topic ramblings on some aspect of the cryptosphere. Comments and critiques welcome.
Two Minute Crypto – Volume and Volatility
Welcome to Two Minute Crypto. Well, two friends of mine have dropped back in after a long absence. Volume and volatility. These guys are often inseparable though volatility seemed to drop off the radar for a while there. Anyway, they are back together.
Ok, back to business. The twin metrics of volume and volatility have returned to the crypto market. Volume has been steadily picking up for the last 5 weeks or so. Day by day we’ve seen a steady increase across the whole crypto market. Now we’re all aware that most of the stated volume is generated by washing trading and other disreputable practices but stripping out the manipulators the underlying discernible true volume has indeed been rising and in the last two days it has taken off.
Volatility has been sorely lacking. However, the signs of a return were there – daily pumps across a range of alts. Now that range of movement is playing out across the entire market. The drivers of trade profitability are back in play. Risk is back, as is profit. Now’s the time to draft a plan if for some reason you haven’t already done so. Long dormant positions may be about to come into play. Review your investments and note down your thoughts. Are you approaching an exit point? Are you thinking of expanding a position? Clarify your approach to the market – are you a day, swing, or scalp trader, a long-term investor? All viable approaches but also all requiring different strategies and areas of focus. Any confusion as to your goal in the market will cost you money.
Above all, don’t chase. Volatility, focus, and patience will give you a market opportunity. FOMO is just going to whittle away your capital.
Is it too late..don’t be daft…we’re only getting started. A note of caution this current bullish momentum could evaporate in a moment – don’t bet the farm…if and when we have a confirmed reversal of trend which we don’t have yet…many more opportunities will present themselves.
Thanks for listening.