Important tests ahead
Cryptic ball: volatility incoming.
What did I tell you yesterday? The current bearish backdrop isn't good and the chances of a bounce are low. Moreover, after $40k was lost, and with the current stock market carnage, it is time to expect $36k. Will it happen this week, though?
- Quite likely. I mentioned that if the S&P 500 dropped another 2% on Tuesday (from Monday's lows) then that such scenario would be very likely. Well, the index is down 3% on the day but "only" lost 0.6% from that level.
- What does that mean? That the day of reckoning is near. Bulls have one last chance to bid before the world's most-followed stonks print a dangerous lower low before the popular "sell in May and go away" saying comes into play.
- The Nasdaq 100 already broke that support level (even Google's Alphabet [or vice-versa] suffered from weak earnings) and only a major bounce this Wednesday (eventually this week) could save the bulls on the short-term. Still, as also said yesterday, it's unlikely that Q2 will turn out green.
- Back to bitcoin, let's see how the support zone from $36k to $37k behaves. We've been seeing institutions constantly buying the dip, but it's unclear how much liquidity will evaporate once TradFi panics!
In the meantime, I've settled in the Bahamas for the week and things look good. 2018 to 2019 were key building years for crypto. Just remember that this is a trader's market, especially for algos, and good things will come for those who wait!
Chart art: reckoning incoming.
Three things: millions incoming.
- Misaka argues "making $10m a year is not hard in crypto if you have skills + focus". It's all about asymmetry, right? #gojoe
- Richard Chen shares "three counterintuitive lessons from being a crypto VC investoooor". It's all about not picking winners! #colddeals
- Sam Bankman-Fried explains yield-farming in a very cynical way. It's all about that sealed box! #goschrödinger