$ZEC BOUGHT. NO IN HES INTO LISTEN TO ME TO EXPLAIN THE CRAZY PULLS OF ZEC.
I’ve written quite a lot about this coin and I’ve always believed it will continue to set new all-time highs, creating new highs and new “floors,” but not many people trust that. The general mindset is still: "it’s up, so it must go down"—and that’s a very dangerous assumption. Of course, that assumption is very accurate for short-term up-and-down cycles. In the long run, will Z keep going up? That’s not difficult for it. Z has low total supply; most of it is stored in wallets or locked, so the source is limited, and large holders also keep a lot of it. The other day I read some news about a Z mining company in China with a production rate of around 28% of supply; they kept most of it as well and didn’t list it on exchanges to sell. With supply being tight, liquidity in high-price zones is very thin (few sell orders above), so when it drops you’ll see it drops less, and when it pumps, every time it rises there are hundreds—even more than a hundred—of dollars added in one go.
That’s why when it spikes crazily and the “it must go down” psychology kicks in, a lot of guys rush into shorting it. When the price rises, these orders get forcibly closed—they have to buy Z to cover the earlier sell orders placed before, creating a compounding upward effect. Then every time there’s a shakeout to shake out the buying side, they add more capital to scoop up coins from smaller sources, creating an extra thirst for supply. They also set sell prices at very high levels. I’ve repeatedly advised that you should buy spot when the price pulls back to lower levels, or go long if you can endure the price swings well. In the long term, the price will still go up—but of course it will have shakeouts too. As for shorting it, the best approach is to take short positions in the short term following the trend, and tighten your SL to ensure safety.
$ZEC
I’ve written quite a lot about this coin and I’ve always believed it will continue to set new all-time highs, creating new highs and new “floors,” but not many people trust that. The general mindset is still: "it’s up, so it must go down"—and that’s a very dangerous assumption. Of course, that assumption is very accurate for short-term up-and-down cycles. In the long run, will Z keep going up? That’s not difficult for it. Z has low total supply; most of it is stored in wallets or locked, so the source is limited, and large holders also keep a lot of it. The other day I read some news about a Z mining company in China with a production rate of around 28% of supply; they kept most of it as well and didn’t list it on exchanges to sell. With supply being tight, liquidity in high-price zones is very thin (few sell orders above), so when it drops you’ll see it drops less, and when it pumps, every time it rises there are hundreds—even more than a hundred—of dollars added in one go.
That’s why when it spikes crazily and the “it must go down” psychology kicks in, a lot of guys rush into shorting it. When the price rises, these orders get forcibly closed—they have to buy Z to cover the earlier sell orders placed before, creating a compounding upward effect. Then every time there’s a shakeout to shake out the buying side, they add more capital to scoop up coins from smaller sources, creating an extra thirst for supply. They also set sell prices at very high levels. I’ve repeatedly advised that you should buy spot when the price pulls back to lower levels, or go long if you can endure the price swings well. In the long term, the price will still go up—but of course it will have shakeouts too. As for shorting it, the best approach is to take short positions in the short term following the trend, and tighten your SL to ensure safety.
$ZEC
