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TRADING SYSTEMS


The Bitcoin Craze

11/22/17 03:08:24 PM
by Koos van der Merwe

The share price of Bitcoin has reached levels where financial experts around the world are stating that the cryptocurrency is "the very definition of a bubble."

Security:   HIVE-V, BLOC-V
Position:   Buy

Warren Buffett, the Berkshire Hathaway CEO and billionaire investor has warned that there is a "real bubble" in bitcoin. According to him, the cryptocurrency cannot be valued because it isn't a value-producing asset. Earlier this year, Jamie Dimon, the CEO of JP Morgan called bitcoin "a fraud", and that the cryptocurrency was "worth nothing." On the other hand, Goldman Sachs CEO Lloyd Blankfein recently told Bloomberg that he was not willing to "pooh-pooh" the cryptocurrency. James Gorman, the CEO of Morgan Stanley also recently stated that bitcoin is "more than just a fad." So who do you believe?

One should not forget that a currency produces no income. It's worth is what you can purchase with it. Bitcoins worth is how many online businesses will accept bitcoin as payment.

So, reading all the arguments, pro and against owning Bitcoin or any of the other cryptocurrencies out there, is it truly another "Tulip crash" that will happen in the future? However, if you want to play the move in Bitcoin, without purchasing the cryptocurrency, have a look at the share HIVE on the Vancouver Stock Exchange.

The company HIVE is the first publicly listed blockchain infrastructure company that bridges blockchain and cryptocurrencies to traditional capital markets. Trading the share is very volatile, but can produce solid profits.

Figure 1. Daily chart of HIVE.
Graphic provided by: Omnitrader.
 
The chart in Figure 1 is a daily Omnitrader chart of the share HIVE. The chart shows a buy signal given by the RSI 14-period strategy shown below the Vote line. With the public announcement that the company would start trading cryptocurrencies on September 15, the share price rose strongly from 30c to its present price of $4.48 as of November 4. Those in the know who bought shares at 0.30c are laughing all the way to the bank. Traders can trade the share. Daily volume is exceptionally high.

Figure 2. Daily chart of Global Blockchain Technology.
Graphic provided by: Omnitrader.
 
A second share that has skyrocketed more than 1800% following the global surge in cryptocurrencies is Global Blockchain technology, BLOC, listed on the Vancouver Stock Exchange. The chart shows how the share price has risen strongly from 20 cents on July 14 to a high of $3.25 by October 6. The share price is presently trading at $2.85.
Trading the above two shares is high risk, and one should not adopt a buy-and-hold strategy but a "watch me" strategy taking profits ASAP and placing new trades on every correction. Definitely worth watching.



Koos van der Merwe

Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.

Address: 3256 West 24th Ave
Vancouver, BC
Phone # for sales: 6042634214
E-mail address: petroosp@gmail.com

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