I understand the theories about cryptocurrencies being a scam. “The whole thing is about to fall apart”, they tell me. And yea maybe, that’s entirely possible, explains JC Parets of AllStarCharts.com.
I don’t really care that much either way. If it goes up, I hope to profit from it. And if all the coins go to zero, I’ll make sure I’m not in them. Other people losing money long crypto in that scenario is not my problem. I don’t have the slightest interest or the time to care about other people’s portfolios. And I say that only to reiterate that I’m approaching this conversation with a very open mind. Because we all know that the Bitcoin maxis and Ethereum folks can rarely have a civilized conversation, particularly with those who might disagree.
So, to be clear, I do not care at all. I’m much more interested in what’s for dinner tomorrow than I am worried about whether Bitcoin is going to a million or zero. Now with all of that out of the way, I think you have to be out of your mind to be short BTC or ETH if they are above their prior cycle’s peak.
Here’s what that looks like:
I can’t think of a more important picture right now for crypto. It doesn’t exist. What this chart represents to me is a very simple concept:
The entire cryptocurrency complex is not going to fall apart and collapse to zero if these two cryptocurrencies are above their prior cycle’s highs. I’m specifically referring to the late 2017/early 2018 highs when BTC & ETH peaked and proceeded to have historic corrections.
After several years of a bottoming process, these two ultimately broke out again to new highs. And now, here we are, back at the scene of the crime.
All those bad things you hear about are not going to happen if these two are above those former highs. BTC and ETH together represent about 60% of all crypto assets. They’re a big deal.
So, if you think this is all about to collapse and you’re short crypto, my bet is that you’re going to lose a lot of money unless these two are back below those former highs. And right now, they are not.
So, as I said, I think you have to be crazy to be short.
Learn more about JC Parets at AllStarCharts.com.