Air Pocket

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On Sunday I hit “peak profit” on my crypto account. The next day, largely, I got out, and I wrote about why in the Why I Bailed On Crypto post. Well, I’m glad I did, although I’m not sure what’s next. This is the third instance of something, on a minute bar basis, that looks like it’s going to plunge, but it hasn’t done so yet. All the same, I have zero exposure. The Director calls these plunges “air pockets’, which I think is a fitting term.

airpocket

As I look at the daily chart, however, I’m uneasy. On Ethereum, for example, I don’t think I’m interested in re-entering until we have successfully tested that lower horizontal, in green. And frankly, once we’re there, I’ll be too nervous about a failure of that support. So unless it pushes above that red horizontal, I’m staying far away.

slopechart ETH

The good news for you non-crypto traders is that I’ll probably shut up about the entire topic for at least a little while!