When the rumors about Tether’s possible problems arose in December I decided to put $1 of Tether in my tracking app. If the rumors turned out to be true, my tracking app would alert me of any fall greater than $0.03 cents.
Over the past several weeks I have been closely watching the price of Tether as well as my entire crypto portfolio. And I will admit I have been obsessively looking at my crypto portfolio since December. Who hasn’t right? (Okay if you haven’t you are so much better than me.)
I have noticed something very interesting and maybe pretty obvious, but it is helping me make trade decisions and to judge the general direction of the market. We all like to buy in the red and sell into the black, this trick may help you do just that.
When the Tether price is $0.99 or lower, the entire crypto market will have an inclination to trade upwards. This is because people are selling Tether to buy other crypto.
Conversely when Tether is $1.01 or higher, the entire crypto market will have an inclination to trade downwards. This is because people are buying Tether to exit their crypto positions to wait for better crypto prices.
Maybe you thought back to that trade alert signal I mentioned earlier. It has gone off many times over the past weeks in both directions. I hate buying into rallies. I hate selling into weakness… don’t we all?
Once I decide to buy something I wait for the Tether price to begin increasing. When Tether is at $1.03 people are selling crypto and buying Tether at an increasing rate. That is when I like to buy because people are selling crypto that I want to buy cheaper.
Conversely again, when I decide to sell something I wait for Tether to hit $0.97 because I know people are selling Tether to buy up the crypto I want to sell at a higher rate.
I also use the same concept just to get an idea of general market direction. In one quick glimpse of the price of Tether I get an accurate gauge of general market price direction:
Tether < $1, market trending upwards.
Tether >$1, market trending downwards.
Tether = $1, neutral.
I’d really like to hear some opinion on this Tether strategy.
About Tether… I do not think it is as risky as the FUD makes it out to be. Just the same, whether you agree with me or not about the above strategy, I would suggest putting Tether in your crypto portfolio app just to monitor the situation.
Originally posted on Reddit: https://redd.it/7w8plk