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?
Three things: need some objectivity?
- Mario Gabriele analyses Multicoin Capital's latest plays to help you find the next Solana.
- 0xQuit analyses the latest socially-engineered "hack" designed to trick BAYC holders out of their precious monkeys.
- Rahul Maganti, VP at Jump Trading, shares their very specific framework for analysing Layer-1's performance.
- And I shared some thoughts on how the EU should recover from the messy regulatory situation it has put itself in with TFR.