Here’s my take on the two big dogs of crypto — $GBTC and $ETHE (August 19, 2021)
GBTC ETHE BA
I want to look at the crypto stuff, Bitcoin ( OTCMKTS: GBTC ) and Ethereum ( OTCMKTS: ETHE ). Don’t worry about it, I am not going to look at Dogecoin ( DOGE-USD ), just the 2 big dogs here. Here’s why; Bitcoin ( OTCMKTS: GBTC ) has been kind of up and down, super volatile, this is the trust. You can always go to Coinbase, open up a wallet or whatever and buy it that way but this is not Bitcoin Mentor so I am just looking at the issues here.
Since the middle of July, you can see what I am doing here, it has actually run-up over 60 percent at the high. Obviously, that’s a big deal, nobody is going to argue otherwise. But the way I am looking at this now is, it just seems to me like this was the low, then a higher low at the 200-day moving average. The 50-day is now trending higher, it’s going to cross the 200 probably in a couple of weeks as long as Bitcoin ( OTCMKTS: GBTC ) stays above the 200-day moving average, and that will be really bullish.
But then I would look at today’s low as another higher low. And so as I am seeing this, it just looks to me like we are going to be on a tear here. It kind of makes sense because fewer and fewer people are trusting the Fed and the financial system. I don’t know who those 12 people are but I am sure they are fine people, nobody is really trusting what’s going on. And that is really one of the attractions to the crypto stuff.
I know there are a lot of other things going on, I totally get that, it’s very complicated. But when it gets right down to it, for me, I just look at charts and I look at charts as a reflection of crowd psychology. And then it is just up to the person looking at the charts to kind of read the tea leaves, kind of figure out what it all means. So I am just telling you, I think what it means is that Bitcoin ( OTCMKTS: GBTC ) is ultimately going to go higher and break out. Is it going to go to a new high? I have no idea. I have no idea but I wasn’t long I would be long, that’s what I think.
And then Ethereum ( OTCMKTS: ETHE ), it is basically kind of the second verse is the same as the first, type of thing. The general wiggles and oscillations and stuff are basically the same, only Ethereum ( OTCMKTS: ETHE ) is closer to a new high, to it’s all-time high here. What I would suggest doing on this is, if you are trading it, have at it, this isn’t what this is about. I am not talking about trading it here. If you are going to be a trader don’t trade the grayscale stuff. Don’t trade that. Just trade the actual currency, it’s easier, it’s smoother. The spreads are basically nonexistent and so that is the way to do it.
But if are looking for just kind of an asset allocation and maybe some swing trading, kind of long swing trading, swing trading and moving around money, I would be putting money in Ethereum ( OTCMKTS: ETHE ) and Bitcoin ( OTCMKTS: GBTC ). And frankly, more than half in Ethereum ( OTCMKTS: ETHE ). I just think both of these work. I am not talking about the religious aspect of anything. I am just saying, both of them work. And if you understand price movements you can put this volatility on your side. This thing has doubled in less than a month, right here, but it is still ultimately in a trading range. So you want to be taking these opportunities to get in.
One other thing, l Boeing ( NYSE: BA ). I neglected to put this in my Strategy Session tonight. Somebody asked me about it, normally it’s the type of thing that I would just do it tomorrow but this is really important. Dude, get out of this pig. There is nothing good about this that makes you want to own it. Maybe if you’ve got a 5-year plan, fine, everybody seems to have one but not in trading. There is nothing good about this. You need to ditch this witch immediately, period. There is no catalyst that is going to push this thing.
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