Portfolio Management – Dollar Cost Average Strategy Edition 3


AllesOverCrypto likes to let people talk about their crypto adventures. Based on this initiative, I proposed to start a guest blog series, here on the website. It is important to know that I do not work at AllesOverCrypto and that everything you read in this blog is only my personal opinion and this is separate from AOC.

How is the market

As said at the closing of blog 2, there is this month few changed. The war is still in full swing and unfortunately inflation is not yet pushed back. On October 13, the consumer price index (CPI) for September was published. Inflation is again by 0.4 percentage points grown and now stands up 8.2%, the full article can be found in this link. The market immediately reacted to this: prices were again slightly lower compared to last month.

That the dollar is also very strong at the momentespecially if we compare this with the euro or other currencies. As a result, assets are not yet in demand. People now leave their money in the bank to earn some money. Firms are less likely to take out a loan during periods of inflation or reinvest earned capital in assets. We see all of this reflected in the prices of the S&P and of course the crypto world.

The feeling

Unfortunately sentiment has eased a bit longer, last blog we were around 28, this has fallen towards 20. Inflation not stagnated yet and interest rate hikes still have not the desired result.

Looking at the graph below, my observation is as follows; after periods of fear, these are the red circles, come periods of greed, the green circles.

For now, we just have to wait for better news that can ensure that sentiment improves and investors return return to buy assets.

Liquid storage

In the chart of liquid stocks, I see it over the most recent period quite a bit of Bitcoin has been bought and this is taken from the trading platforms against cold storage/ledger. In the overview below I have selected all trading platforms, if I look at this per exchange, the trend is quite clear; a lot is bought at these prices. The striking thing is that a lot of Bitcoin is bought behind the scenes, and so is this does not affect the price.

These types of transactions are often carried out by large companies they have access to over the counter (OTC) offer.. On October 18, an agency only has bought 48,000 Bitcoin on Coinbase and immediately removed from the trading platform. There are rumors that it is possible Tesla has been. It’s about the same number Tesla was sold in the 2nd quarter of this yearvery random.

Technical analysis

Looking at the technical analysis, I see that we have two options. The first is the small descending triangle, it should be in the coming weeks up or down have to break out.

In my opinion, the more logical analysis is that for one longer period stay around this price level. As this unfolds, I look at the intersection of the two extreme yellow linesthis will be around February 23, 2023 with a floor price from €21,315.

My heap is still placed on a year-end/Christmas meeting so I might be able to trade some extra Bitcoin with well-functioning altcoins.

The portfolio

In recent weeks I have faithfully bought €500 every Monday. Reasonable considering the market flat I have therefore not seen a good reason to act.

The next important item on the agenda will be interest rate decision is from America on November 2nd. The market will still be a little restless around this period, I often see this trend because people are trying to speculate whether we get good or bad news about inflation. Yourself I choose not to participate in this.

If you want to know more about who I am or what I do, check out my website.

If my investment strategy appeals to you, copy my crypto strategy via the Iconomi platform.

Leave a Comment