Technical View
LINK has a crucial moment approaching with the 50 MA bouncing or falling through the 200MA.
Macro View
I am taking a neutral position in the trade for the time being since I take the view that uncertainty in the equity markets will lead to contagion in crypto. The bull case for equities is for the passage of stimulus or a Trump win while the bear case is a Biden administration (higher corporate tax regime directly effects valuations). Further, to the extent we experience a coronavirus induced financial panic or liquidity crisis that it would lead to dollar shortages which translates into dollar strength and crypto weakness. I therefore expect shortly before or around the election for a significant uptick in volatility and a hesitation to go long crypto against a backdrop of substantial risk in the equity markets.
Additional Thoughts
First post - I have never traded on technicals and look forward to the learning process along with feedback from the community. I have traditionally been an investor with maybe 20% portfolio turnover every 6-12 months which explains why I am looking at a daily charts. I also tend to view issues through a macro lenses and hope to learn a great deal with respect to timing the entry/exit of trades using technical analysis.
LINK has a crucial moment approaching with the 50 MA bouncing or falling through the 200MA.
Macro View
I am taking a neutral position in the trade for the time being since I take the view that uncertainty in the equity markets will lead to contagion in crypto. The bull case for equities is for the passage of stimulus or a Trump win while the bear case is a Biden administration (higher corporate tax regime directly effects valuations). Further, to the extent we experience a coronavirus induced financial panic or liquidity crisis that it would lead to dollar shortages which translates into dollar strength and crypto weakness. I therefore expect shortly before or around the election for a significant uptick in volatility and a hesitation to go long crypto against a backdrop of substantial risk in the equity markets.
Additional Thoughts
First post - I have never traded on technicals and look forward to the learning process along with feedback from the community. I have traditionally been an investor with maybe 20% portfolio turnover every 6-12 months which explains why I am looking at a daily charts. I also tend to view issues through a macro lenses and hope to learn a great deal with respect to timing the entry/exit of trades using technical analysis.