The Prospect Of An ETF: Another Reason To Buy Bitcoin

I know it isn’t logical, but when a trade goes your way initially and then falls back to even or a small loss it is more frustrating than when it just goes plain wrong from the start. There is something about missing the opportunity to make a quick profit that makes it so, and that feeling of missing out can cause you to make some illogical decisions.
When, a couple of weeks ago, I suggested buying Bitcoin against the U. S. Dollar (BTC/USD) at around $475 the market immediately made me look smart as, over the next few days, the BTC/USD rate jumped to around $520. As anybody who has ever traded anything will tell you, though, markets are fickle beasts and just as quickly as things can go your way, they can turn and go against you. Sure enough, we are now back where we started. The question, then, is ‘what to do now?’
The obvious answer is ‘nothing’; nothing has changed regarding the long term drivers that made the trade viable in the first place and neither of the initial targets, $660 to the upside nor $390 to the downside, has been reached. The lack of follow through on that initial move up is somewhat worrying, but the formation of some pretty solid support at these levels suggests that upwards is still the path of least resistance.

This post was published at Nasdaq on September 09, 2014,.