I think not. I have seen a few headings of late suggesting a new bullmarket.
After I wipe the smile from my face I ask who is creating these crazy headlines?
My immediate thought was those who are heavy invested in the crypto – that they are talking up their own book.
It will take more than a few spruikers to move mountains.
It takes a lot to move markets and in most times the fundamentals must be within coo-ee.
Talking up your own book comes in many forms and one of the perennial guilty parties is media.
I would give up if I owned a newspaper today. I am absolutely amazed at the number of people who actually read the black and white print today given they are $2-4 a copy with yet a further cost to the environment.
Plus we are not even sure where such concoctions written in the paper actually come from.
Equally I would hang my head if I was a journo.
Each day having to fabricate.
My personal rant, but I do so to make my point that what we read or hear is not a basis for investing.
A point I have reinforced numerous times over the years, but do so again as so many investors are plain gullible.
Lets look at the Bitcoin charts – daily and weekly:
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Bitcoin (FXBCUS): Daily Line Chart
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Click to Enlarge
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Bitcoin (FXBCUS): Weekly Line Chart
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Click to Enlarge
Yes, the daily chart shows a new impulse move – but a tiny one.
The second chart – weekly - suggests little chance at the moment and not even small signs can be gleaned of a bullmarket in the near term. You have time to get on board this gamble.
Crypto could well be a new world order in years to come. But no rush. You have plenty of time to climb aboard this bus.
It is moving slowly and there will be many other buses coming.
Enjoy the ride
Tom Scollon
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