- Midas Touch – Elon Musk Sends ETH Price to Above $2000
- Last Week In The Forex Markets
- Top 3 Pairs For Next Week
- The Social Traders Free Training Video
The man, the myth, the legend Elon Musk has stated on a recent podcast at The B Word conference, that he is in fact an older of Ethereum.
Following this revelation to the crypto industry, it sent the price of Ethereum soaring to above £2000 per coin.
Ethereum has been sent back to levels not seen for almost 2 weeks, following the announcement at The B Word conference from Elon Musk, where he stated that he was in fact a holder of the popular cryptocurrency, Ethereum (ETH).
The reason for this article being 'Midas Touch' is everything Elon Musk seems to speak about, triggers a chain reaction of people putting their hard-earned money into the said thing he approves of, causing the bullish moves we see whenever Elon opens his mouth.
We can see that the day of the interview we pushed even higher, with the growing confidence in the coin being established again by the man himself.
The crypto markets have had a rough time in 2021, being the year of the pullback and crackdown, the crypto markets have been a confusing and bearish place for many who joined late into 2020 or early 2021.
With many searching for the holy grail coin again after many of their top investments came crashing down over the last few months, will this be the beginning of Ethereum's rise to previous levels?
Well, Elon didn't just mention that he owned ETH, he also raised his concerns for 'Proof of Work' and would like to see the industry change their power-hungry mining operations into a Proof of Stake protocol.
With the release of ETH 2.0, offering only proof of stake, we can expect this be a huge thing to come.
Well this one is hard to say, we have covered the international crackdown on crypto before, and with those matters still developing this 12% increase in value may be a small increase compared to what we will see next.
With the push for 'Proof of Work' operations to become obsolete, we can expect to see many coins drop off the map, leaving the strongest candidates left in a large pool. However, we could also see many coins evolve and overall outlast the bearish trend we are in.
Looking at how Elon Musk can simply send the price of anything he wishes to the 'moon' then we can not expect this to be the last of the billionaire's public announcements of his own holdings.
You may have already made some huge gains from the man with the golden touch, you may also have lost money.
As traders, we should always be aware of the fluctuations in these hugely volatile assets.
We are still witnessing huge volatility today on many of the cryptocurrencies, with the industry looking for the answer, we should not be following so willingly.
We should always question the 'Why?' and never put all of our holding onto one big move because Elon Musk holds the same coin.
However, this is not to say don't use the 'Midas Touch' to your advantage, be smart and don't put yourself in harms way if we see more fluctuations know when to quit and take profits and I'm sure we will all be able to take a slice of the Elon Musk profit pie.
As always guys are careful when trading anything that comes with big risks, this is not financial advice.
As the markets distribute orders, catch people on the wrong side of the markets, and we wait for the dollar to give us some clearer direction, we have taken minimal trades this week.
We have to remember that not every week we can expect to make returns, but regardless we didn't take any losses, let's delve into the setups we looked at.
EURUSD: [Break Even]
EURUSD was looking like a nice move last week, however, we didn't get the move desired.
We can see that price action on the 1m time frame had caused a break of high (BOH), we simply were looking to trade the order block being the cause for this.
Entry was taken on the touch of the trend line, we can see that price had pushed into the order block, causing the mitigation to happen, then price messed around before pushing to the upside.
We were trading the 1m time frame here, so we went with an aggressive approach, moving our stop loss to break even, this was done in the event the market came back to our entry.
Unfortunately, this was the case. Price came straight back to our entry point before running to the upside.
The fractural nature of the markets causes these things to happen on the lower time frames, we could have avoided this by moving our stop losses to 0.5% risk being on the table, however with this trade occurring on a Friday we are not too fussed about this.
EURGBP: [Break Even]
EURGBP has a similar story to EURUSD, taking us out for a break-even.
We can see that price action has been breaking highs, naturally, we identified the block of orders in play that was the cause.
We entered on the top of the block, we then went break even, due to the markets not giving clear direction and that day we had the EU monetary policy release, causing a lot of fake moves.
Unfortunately, we were taken out for break-even on this trade setup.
EURUSD: [Break Even]
EURUSD offered us a potential setup last week.
Taking a look into this setup, we can see the overall nature of this pair is descending, being at the bottom of the descending channel, we can look for a reversal back to the previous structure.
Price action came to our area of interest, tagged us in and pushed away, by this point we were break even to keep us covered to any unforeseen fluctuations.
However the price came back to our entry, taking us out for a break-even, this seemed to be the theme for this week.
Every Saturday we send a 'Market Breakdown' to our Pro Members, this week we are taking a look at three trade setups for next week.
First up, we are looking at EURAUD, taking a look at price action, we can observe it moving in an ascending channel.
Within this channel, we can observe price has taken liquidity at the top, then caused a break of low (BOL), giving us cause for more bearish momentum,
Simply we are looking to trade the pullback into the block of orders that caused the break of low.
We can look to take this to the 90% rule of the pattern, giving us a real nice RR if executed with the right price action.
USDJPY is shaping up to be an excellent setup for us to capitalize on heading into next week.
Here we have price action pushing down in a slight wedge pattern.
We believe that price will be looking to continue to the upside, looking at the way price is exhausted, we can see price pushed higher causing a break of high (BOH).
Following this, the price has closed below the previous structure, potentially signifying we could see a pullback to the cause being the order block highlighted.
This could turn out to be a really great trade setup heading into next week, so be sure to keep up with us on Slack for more updates.
Finally, for our final setup for next week, we are looking at GBPCAD longs.
This setup is one to keep on your watchlist heading into next week, we can see that price action on this pair has been ascending in nature, but we can see there is a descending nature just before a larger push to the upside. We are simply looking for that pattern to play out again.
With a break of high (BOH) that hasn't been mitigated yet, a descending trend line, this also lines up with a 1,2,3 of the trend.
For our entry we will be looking to take it from the order block being the cause for the break of high, this then gives us cause to take our entry from this point in the market.
We covered this in much more depth with our Pro Members, so be sure to check out our membership plan, if you are looking to develop your trading skills, join a like-minded community, and receive the latest market updates.
This week we thought we would treat our free members to a free training video.
Here we will be covering 'discretion', now this is a subject all traders should take notes on as Dylan will explain in the free training video below.
We plan on doing more like this so be sure to let us know what you guys think and if you would like to see more of these!
Why not check out our ‘pro package’? You will gain access to our in-depth course as well as many more features – www.thesocialtraders.com
Looking for a reliable broker with raw spread accounts and 1:500 leverage? Try our partnered broker – https://www.axitrader.com/uk/live-account?token=IDUZ-LFrugU5oKniM-HhFmNd7ZgqdRLk&affid=7138
We thank you for reading this week's addition to the TST Newsletter, have a great trading week, and stay consistent. – 'The Social Traders Team'