Forecasts for ETF Cryptos are not 100% Correct – Yet to Evolve

Forecasts for ETF Cryptos are not 100% Correct – Yet to Evolve

July 31, 2018 Off By Steven Anderson

Industry experts are divided on the opinion of institutionalization of cryptocurrencies like IOTA, Litecoin, Ethereum, Cardano, XDCE, and Ripple.  When cryptos are made tradable as exchange traded funds, it can bring in more transparency in the trading process. 

Asset Class Is Showing Up a Bullish Trend

When a particular asset class is not seen in the adverse news reports but is seen very common in the good news section, it is indicative of the fact that the asset class is showing up a bullish trend.

Cryptos In EFT will Attract New Investors

In a recent poll, it was seen that nearly 70% of the participants in the survey considered investment in cryptos as too risky.  About 23% considered it to be risky to a certain degree.  This is just indicative of the fact that cryptos that become approved as ETF will attract new investors.

Manage the Risk Efficiently 

When the investors follow strategic investment trends, they will be able to manage the risk efficiently.  It is possible to come up with reliable strategies that will help with minimizing the risks eventually helping investors to make partial profits on a regular basis.

Since the forecasts for ETF cryptos are not 100% correct, it is important for traders to close their positions at stop losses in order to save their capital.  For instance, if it is recommended that a stop loss set at $7300 is ideal in a BTC/USD pair, it is important for investors to stick on to the trend.

New Support Line

Investors should monitor for weakening momentum in the uptrend line and they need to base their decisions accordingly.  When the long positions held by the traders are liquidated, the prices tend to get pushed below the trend line. A new support line will be created.

Buying Has Returned

In cases where there is no directional move seen in the price trend, you need to wait for the breakdown or breakout of a trend, look for a positive divergence on the RSI, take a position only when the buying has returned. Before proposing any trade, it is important to see that buying has returned to the ETF pair.

Study the Pattern of Strong Resistance

Moving averages are strong support, specifically so, when they are completing a bullish crossover with the EMA providing with support to a specific crypto cash.  The downtrend line or the uptrend line should be considered to study the pattern of strong resistance.  The support should be watched for when a break down happens. Investors should be clear about when their trial will stop and they need to reduce their risk by holding on to their existing long position.

Buy Call and Stops

Negative developments in the trend lines will lead to a deeper fall.  When such trends are seen, the buy call should be maintained until stops are recommended. There will be no trade seen until the price remains within a range without a breakout. A long call should be started only when a range breaks out.

Trading ETFS in crypto currency is similar to trading in other ETF assets.  The decision to trade is made only when reliable buying setups are reflected in the trends.  The forecasts are not 100% reliable and they are yet to evolve.