What’s Next For The Crypto Market? Short-Term Recovery Or Something More?!

Crypto Heatwave - Trades of the Week - 19 July 2022
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YES… Celsius went belly-up.

YES… Voyager has now filed against bankruptcy.

YES… Luna has flatlined.

YET

Bitcoin has rallied… Ethereum has actually outperformed Bitcoin… Solana has rallied despite lawsuit rumours.

And the Fear is dissipating.

What does it all mean? Is it right to PANIC?

Of course not!

Let’s dig deeper…

CRYPTOS

It’s all about realising, that these kinds of mood swings, ups and downs, highs and lows… are completely natural in the evolution of Crypto and its entire ecosystem!

It’s like the Big Bang… there was nothing, then BOOM! The universe magically/miraculously arrived… and it took THOUSANDS OF YEARS for it to settle down, grow, and thrive.

Well, the same goes for Crypto. It’s only 12 years old!

It’s still finding it’s feet, taking baby steps. Learning to walk. Adapting to its surrounds.

It will… at some point mature… and the strong will survive, as Dennis Sahlström and Keith Sullivan discuss in this week’s excellent Trades Of The Week episode.

BITCOIN – a small breakout upward. Could be rallying the market. We believe worse case $29k, best case $32k, give or take.

We absolutely believe it will revisit the highs and even make the $100k mark. Remember it went from $3k to $69k last year.

ETHEREUM – went up 10% and outperformed Bitcoin, great for us as we got in at the -80% drop and it has now climbed considerably. Maybe because Ethereum 2.0 is scheduled for launch on September 19th.

That might trigger a new rally in the entire market as that is how important Ethereum is as a player.

SOLANA – has also rallied despite the rumours of facing a lawsuit. They did take a little bit of a hit but looking at the price action it seems like people are still very positive when it comes to Solana as they are building a great ecosystem.

WE ARE NOT INVESTING IN ANYTHING NEW AT THE MOMENT.

What we are doing is getting into our positions a little bit more with Ethereum, Solana, Atom, and Decentraland (one of the big metaverses).

DECENTRALAND (MANAUSC) – was down at -90%, so we made 500% on that going up.

It’s still down at the time of writing -85%, so it could be a great entry point… it certainly isn’t the time to sell.

And remember this…

You can only lose, what you invest

That is how simple it is.

BINANCE – actually overtook Coinbase in regards to the amount of Bitcoin they hold. In other words, they are accumulating more Bitcoin which is great.

Make sure you follow the rules when it comes to getting out of the market. Make sure you are taking profits as that market goes up. People are very happy to buy Bitcoin at $60k, $65k but now they’re nowhere to be seen.

Think about that – it’s now at $20k – now is the time to buy, not $60k that is the time we sell and take profits.

MARKETS

Still a waiting game, though inflation in the US increased to 9.1% – an increase of 0.6% month-for-month. However, the Fed Reserve are probably going to increase interest rates again.

Consumer spending – has increased slightly, month-on-month.

Is this a true picture? Not necessarily – as they might be buying exactly the same amount of products and services… it’s just costing them more!

Our view?

Have to take it with a pinch of salt – because there is also the debt that consumers are taking on in order to pay for essential everyday goods. Not good.

In our view – the US has been in recession for a few months now, we shall see what the “official” line is in due course.

BUT – as we always say to ourselves: so what?

Hedge against the market. Buy the best companies – find the companies that may recover quicker. They are not bound by inflation because people are still going to be spending money with them because they need to.

Hedge… but also diversify.

VCA

Moving sideways, a bit like cryptos, stocks are recovering a little bit but not enough to take profits, so we’re only adding one –

LOWES HOME IMPROVEMENTS (LOW) – at -28%, a great entry point, an American retail company specializing in home improvement, with good fundamentals.

When you think that people are working more from home, then this company could have a good future.

What are you doing in these times?

Everyone out there is fearful, how about you?

It’s all about what happens up here, in the mind, your mindset.

How is it set? Is it set up right to enable you to become a successful trader and investor?

Well, there’s one very good way to find out… get in touch with us and we can help you with your self-assessment!

BUFFALO

The strategy that doesn’t require a specific market – the market can go up, the market can go down – it doesn’t really matter!

ALBERTSONS (ACI) – flirting with our stop loss.

NV5 (NVEE) – locked in 1% profit.

ALNYLAM PHARMACEUTICALS (ALNY) – no trade here as it took us out at the stop-loss break even and then came down again. If you didn’t move your stop-loss, you’d actually be up 1%!

So that is the nature of markets… and why you should always do your own research and act on your own beliefs.

NEW BUFFALO

Adding two shorts this week

BUILDERS FIRSTSOURCE (BLDR) – nice reversal candle, just on the trend line, looks awesome but be wary of earnings, we like the lower highs and lower lows continuously which is always a good sign

KARUNA THERAPEUTICS (KRTX) – another nice red reversal.

One thing we do know for certain… we are not here to catch the shorter-term moves – we’re here to build wealth longer term and we hope you are as well.

RESULTS

STOCK MARKET

BUFFALO: +63.2% on total portfolio

VCA: +1,025% on money invested

CRYPTO

CCA: +1,510% on money invested

Small Cap: 4,320% on money invested

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