Posted on Jan 17, 2020

Money Metals Exchange

In mid-May 2019 the leading cryptocurrency, Bitcoin (BTC), was trading around $5,600. At $4,000, a prominent technician predicted it was gearing up for a run to $6,500. Yet when it reached $5,700, he recommended selling because of a technical "non-confirmation."

As if on cue, BTC began an epic upside run, easily slicing through his initial target! Following an $8,600 print, the price cratered to $6,600, then back to... $8,400! Who knows where it will be when you read this, but I suggest that there is something important to be learned here…

The moral of this little tale is that when holding a position like physical metals, which has gone through a lengthy underperformance, the tendency is to liquidate it at the first sign of a strong price rise.
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