NFTs grow on trees
Cryptic ball: liquidations are key.
This was an easy weekend for every non-leveraged trader. In the early (UTC) hours of Saturday, bitcoin jumped 5% in a couple of hours - a strong move as the crypto leader doesn't behave like your favourite low-cap alternative token. This happened as bears thought BTC was preparing to dump, and the information that a large number of leveraged shorts had been opened enticed bulls to squeeze those betting against the orange coin - as you can see in the below chart.
Naturally, this also prompted many to open degenerate longs, thinking that BTC would break its all-time high. But nice things don't come easy and there wasn't enough short material accumulated to do so. And, later in the day, the orange coin eventually fell to the exact same level it had pumped from - now liquidating some, but not many, of those leveraged longs, in a move akin to the infamous Bart pattern, very popular in 2017 and 2018, when leverage ruled the crypto land!
Chart art: third time is a Bart.
Market musings: third time is a spell.
Why are we talking about Bart? To make sure you don't FOMO and that you become aware of how large cryptomarket participants tend to play with us! But there's something even more important we need to note now. As you can see in the chart above, bitcoin has had two failed attempts at breaking the current ATH. This is making many traders feel the third time will do the trick. Conversely, our contrarian approach to markets could mean bitcoin would revisit $55k before it pumps again. But worry not, there's a world of alts moving out there!
Remember when last Wednesday we told you exchange tokens were going to pump hard in anticipation of Coinbase's IPO? Well, Binance's BNB has appreciated up to 80% since then, and FTX's FTT has climbed nearly 30%. Naturally, people are buying the rumours the IPO will be successful. But note that, even if it is successful, people tend to then sell when the news come out, or so the saying goes. Lastly, don't forget alts move faster than BTC and ETH and leverage trading them can lead to spectacular losses, just like it happened today in BNB's 15% dump - which caused $130 million in losses. Ouch!
Visual block: this one was a pure bArt!
Three things: it's all about India today.
- Balaji S. Srinivasan is the former CTO of Coinbase. He proposes adding crypto to IndiaStack, a set of widely used APIs. There's also this good summary.
- Paras Chopra summarised a recent podcast episode with Balaji on why "Crypto is the future of our society" Check it out!
- iSPIRT, the team behind IndiaStack, also wrote a piece on how "digital currencies and crypto investors can help close India’s SME financing gap?"