Pimp it or damp it
4 min read

Pimp it or damp it

Cryptic ball: need an edit button?

Another boring day in the markets in what's potentially becoming a make or break week for traders. As explained yesterday, bulls need the current support zone around $45k to hold or else we're due for a test of $42k. Will bears win again?

  • As you can see in today's chart, bitcoin is currently consolidating around the mid-level of a key range formed back in 2021. While we traded below it for most of Q1 2022, as inflation fears subsided, global markets pumped.
  • Now, this correlation is playing out once more. Fears that inflation will compound if an EU ban of Russian coal looms is approved have halted stonks today, and crypto felt the gravity. Only one significant token survived!
  • Dogecoin, the bellwether of folly, pumped +10% when most other projects suffered losses. The canine token is up 60% since March 15th's bottom, but the fact it's pumping alone doesn't bode well for the health of the market.
  • Why? While DOGE has previously anticipated alt springs - i.e. periods when alternative tokens rise in tandem, that usually happens against a more positive macro or fundamentals outlook. When it happens in the late stages of a bull market, it has been followed by a dump. In other words, it can be a bull trap.
  • With this in mind, I prefer to be cautious and wait for confirmation before spreading my bets too thin. To be fair, DOGE pumped after it Elon Musk announced be bought 9.2% of Twitter. Anyway, once the war ends and the Fed assures us it won't wreck the economy any further, then we can pump.

Until then, it's time to wait for bitcoin bulls and bears to make up their mind.

Chart art: need some uncertainty?

A simple plan, we just need to follow the next big move. Also, don't trust the TA crew telling you that bitcoin is forming a bullish pennant. It is, but, with this macro context, anything can happen and drawing triangles won't help you anymore. But my squiggly lines will.

Three things: need some objectivity?

Tweet tip: need some flights?

When Bangalore?

Meme moment: need some multicoin?


FV Bank: meet us in Miami.

Meet the FV Bank and B21 founders Miles and Nitin at BTC Miami to discuss Bitcoin and banking, from April 6th to the 9th, 2022.
Miles Paschini will be sharing a stage with Caitlin Long this Thursday, April 7th.

Get started: learn more about FV Bank.

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Our newsletter offers opinions and insights from analysts in the cryptoasset space. It is not intended to be investment advice, and should not be treated as such. You must not rely on its information as an alternative to financial advice from a qualified professional. Without prejudice, we do not undertake or guarantee that its information is correct, complete or non-misleading; or that the use of the guidance in the report will lead to any particular outcome or result.