Do Cryptos follow the rules of technical analysis?

Posted By Robert On Thursday, May 2nd, 2024 With 0 Comments

I think the narrative of crypto changed last year into something serious I remember a few years ago when major credit companies would stop people from buying Crypto with their cards (I’m not sure if this suspension still stands) but a lot of people thoughts were that Bitcoin is a bubble and will soon burst and never take off again I do wonder if these people that got stopped from buying this are now thinking they lost out big!

The market for cryptos is highly volatile, but follows core technicals just the same. OK, sure you get occasional 20-30% sell-offs, but that could be your standard 38% fib retracement after a 100% rise in just a few weeks. It’s horrible when it happens to you, but it’s healthy and needed for the market. Nothing goes up in a straight line. Part of the challenge is that the crypto market has a large following of younger / inexperienced followers who are buying positions based upon some bloke on twitter or youtube’s recommendation. The volatility follows this emotion like a charm… “Holding” and top slicing at pre-set levels is the aim of the game. Same as trading any other market, just the percentages may be higher.

You’re still required to pay capital gains tax on crypto profits. I read somewhere though that (in the States) less than 1% of people actually pay their taxes because most don’t know, and those who do just don’t put it on their tax returns. Given the point of blockchain is to make everything much more transparent with permanent / public ledgers etc, it’s a ticking time bomb for anyone who’s raking it in but not telling HMRC. The tax man will get around to it eventually.

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