Cryptic ball: $55k is of the essence.
This week's bullish bias has helped pump the overall cryptoasset market another 4% over the last 24 hours. However, BTC just appreciated 2%. The orange coin is currently stalled at $55k, the crucial point we mentioned yesterday. Why? Because this level is where the 100 and 200-period Moving Averages on the 4-hour chart are currently intersecting. And the 50-day MA is also there, as you can see below.
As many traders look for these standard averages, such focal points tend to have self-fulfilling value. In other words, if bitcoin moves above $55k, this will be interpreted as pretty bullish, and vice-versa. So, by postponing the resolution of this level by continuing to go sideways, the remaining alts can pump left and right without having to worry with bitcoin's performance! Curiously, $55k was also the level at which Tesla sold 10% of their BTC stack last March. What do they know!
Chart art: moving averages are of the essence.
Market musings: ether's ATH is of the essence.
Given all the alt season prep we've been sharing, we hope it's clear that it's not bitcoin that's leading the market right now - even though a sudden move of the leader could change things. As said nearly one month ago, it remains mostly all about ether's evolution. This is further sustained by the fact the 1-month correlation between the top 10 cryptoassets has been declining since January.
So, building on top of yesterday's email, unless bitcoin bounces strongly over the next days, which would likely cause a dip in the rest of the market, we recommend spending some time investigating top alternative cryptoassets. Check the chart below to find some inspiration among crypto VCs and hedge funds. And, meanwhile, keep following ether's price - which just broke a new all-time high again. Could it be pumping due to leaks around a potential NFT-oriented announcement from Facebook shared in the section below? Keep reading!
Visual block: ecosystem wars are of the essence.
Three things: selling the news is of the essence.
- Things are smooth now, but note Friday is the end of the month and there's another reason why $54-55k is a key level. Learn more about it here.
- DeFi users have reached 2 million now, but you're likely not one. Learn more about the space following Josh Olszewicz's price analysis of Curve's token.
- Marc Zuckerberg may be rich now, but he likely wants more. And rumour has it that, in roughly one hour from now, he will announce Facebook has bought BTC. But it's more likely it's some tool around NFTs and content creators.