Using pre-market / Asian markets data to help understand crypto markets: BTC, ETH, ADA, Link, Uni, etc

Using pre-market / Asian markets data to help understand crypto markets: BTC, ETH, ADA, Link, Uni, etc

By BB80898 | OGF | 8 Mar 2021


Here is a best practices guide on how to avoid a bloodbath in the early morning hours of crypto trading.

I think everyone can agree that crypto and the equity markets are moving in tandem.

As stated previously, pull up any chart, and you'll see when stock market takes a major nose dive, so does crypto.

Now, this method is just that, a method. It can help you understand the crypto / equity market patterns, and be agile. That's it. Not forecasting of any kind.

It's just using common sense to be better prepared for the day ahead.

As I'm writing this article, it is around 10am in Beijing, if you live in EU or US, you can easily see whats happening in Asian markets. Sometimes they trail US markets, and sometimes they lead. But you can see how it is behaving. A lot of red ink? Chances are US pre markets will also be red on opening.

As of this being written, I saw the DJI futures plummet from +621 on early Sunday morning, to +15. And the Shanghai SE Composite index is down -30. BTC down about 1K from 51K+ earlier in the day.

Well if the market is BARELY going to go up, and Asia is down, do you really believe the crypto markets are going to moon? Barring outside factors such as another big tech giant announcing they're accepting / investing in cryptos. Highly unlikely.

Try to make a habit of checking pre-market data about 2-3 hours before they open. And if you're agile enough, you may even catch a potential ugly equity market downturn before anyone else realizes it. Because crypto markets are 24/7. If the crypto market really takes a beating when EU/US are asleep, but its just a few minutes before the Asian markets are set to actually open, then for whatever reason, Asian investors are pulling money out of cryptos, before the equity markets in Asia open. That is usually a precursor to some nasty business when we wake up and see BTC sunk 3-5K and pre-markets are lining up red.

I usually use this method to be more aware of bear-ish movements rather than bullish ones. Don't get me wrong, it can help in bullish scenarios as well. But If i miss out on a 3-4K run, ya it hurts. If I sleep through a 15K correction, I'm not sleeping comfortably again for a few weeks.

And remember - the market, any market, always reacts more violently and swiftly on the downside. Probably for the same reason, when multiple food venues give you good service, you don't think twice about it. Just pay and leave. There's no compulsion to write a positive review about it, unless the service was STELLAR. But if a food place is bad, how quickly do people a) get pissed, and b)throw up a negative online review? Quick right?

Your "common sense" having,

Old Grey Fox

As always : THIS IS NOT INVESTING ADVICE. DO YOUR OWN DUE DILIGENCE AND RESEARCH. THIS IS JUST ME SHARING MY STORIES AND views / news updates.

Alphanova.crypto

Above is the .crypto address for anyone who wants to shoot me some cheddar for my thoughts. Please no BTC or ETH. Network fees are killer. Stick to LTC, XRP, ADA, or TRX. The last 3 are almost free in terms of network fees. Remember - no matter how much you send anywhere, choose a coin that's low in network fees. Anything besides ETH / BTC really...

 

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PLEASE IMPLEMENT NON-ERC-20 tokens as rewards. THANKS!

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BB80898
BB80898

Been involved in crypto since 2010. First here to help average investors avoid pitfalls of investing in crypto. And second, to bring attention to potential crypto projects / coins which have merits worthy of pointing out.


OGF
OGF

Sharing my crypto journey with those who want to learn from my mistakes and victories.

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