Cryptic ball: boredom over blues.
This has been an exciting Friday in the crypto markets, with bulls and bears fighting hard. Bitcoin had a double bottom on the hourly slightly below $43k, but bears struck again. What happened and what to expect this weekend?
- Currently, I'm inclined to believe we'll see another test of $42k. This is a more critical zone that I've been highlighting in the yellow line of my charts since almost a year ago. I'm expecting a bounce but I could be wrong. Why?
- As stock markets are closed during the weekend, macro traders have been increasingly expressing their views with bitcoin. The current uncertainty warrants caution, so I posit many want to be short over the weekend.
- Additionally, bitcoin is already down 10% since March's highs. After the $45k support zone failed, it seems obvious that longs have their stops right below $42k, so bears are incentivised to tap that area for liquidity.
- So, the true question is what happens next. I've been telling you I'm optimistic and that view remains. Just be aware that if liquidations in the $42k zone are extreme we may see a peak in fear that would push BTC into its previous range.
- See today's chart to get a clear picture of the previous range and note that there's also meagre support around $40k. But if that doesn't hold then I'd be wrong and the bears would win once again. Let's hope this is a boring weekend!
Chart art: bulls over bears.
Three things: contrarianism over hopium.
- Charlie Warzel asks if "crypto is re-creating the 2008 financial crisis".
- Joel John shows us how "founders can tap into web3 ecosystem grants to build an MVP before ever having to speak to VC funds".
- Slurp loads the bear FUD and argues there's no bullish case for crypto.