October Market Analysis, Thoughts on Exit Strat
Happy Monday!
October has not disappointed. Bitcoin reached a new all time high while Ethereum came within a hair’s breadth of it’s own all time high. Both coins face some resistance here and are now in a minor pullback – totally normal in this strong of an uptrend. I’d expect this correction to last at least a short while before we get the bullish momentum back underway. Keep in mind of course, that Bitcoin can always correct sharply at any time.
Since re-crossing above its 20 week moving average (red line), Bitcoin has regained momentum
As long as BTC remains above its 20 week moving average (red line in chart above), the bullish interpretation cannot be called into doubt.
In my opinion, all of the pieces are in place for Bitcoin and Ethereum to make another run into new highs. The narrative is there more than ever. Bitcoin is viewed more and more as “the fastest horse” in the inflation hedge, with massive government spending (or dysfunction?) right around the corner. In the meantime, better and better onramps are being developed (see last week’s ETF, Coinbase NFT marketplace announcement).
Meanwhile, activity on Ethereum continues to flourish. Decentralized Finance applications continue to innovate and get better at providing value. NFTs continue to suck in more and more new artists, venture funds, and celebrities almost by the day. Atlanta had its first ever NFT meetup just this past week, and I had nothing to do with setting it up! (I also run a meetup group in Atlanta). The decentralized web continues to grow by leaps and bounds.
Ethereum unique addresses continue to grow
As we celebrate new highs, now is a good time to think about possible exit strategies. If you haven’t yet considered “how much is enough”, now could be a good time to start. It’s much better to thoughtfully form a plan like this ahead of time, than to have to engineer it in the moment.
What’s the best way to make an exit strategy in a market where assets can shift +/- 20% in a matter of hours?
I don’t know for sure. I know that I am still learning, still defining my financial goals, all the time. I imagine a lot of people might feel the same way. Money is changing after all…
Some may also have a clear picture, if so, then great. Because I think it makes sense to think about an exit strategy through a framework of personal goals, rather than market timing.
Trying too hard to time the market is a recipe for disappointment, stress, and FOMO. If we want to minimize those three things (any plan should right?), then it follows that a good strategy could be to create a plan that you will be able to execute regardless of what happens in the market.
We all are susceptible to greed and FOMO. Taking profits when you reach personal goals is a good, disciplined way to combat it. You are unlikely to regret achieving a personal goal!
Crypto News:
DraftKings Steps Further Into Crypto With Plans to Become Polygon Validator (LEARN MORE)
Revolut Launches Commission-Free Crypto Trading for US Investors (LEARN MORE)
Walmart Has Quietly Begun Hosting Bitcoin ATMs (LEARN MORE)
Robinhood’s Waitlist for Crypto Wallet Has More Than 1M Customers (LEARN MORE)
Have a great week!
Shahar
This newsletter is meant for informational purposes only. It is not meant to serve as financial advice. If you are interested in financial advice, please schedule a personal consultation with me, and be sure to read the accompanying disclaimer.
