Don't fall in the Jackson Hole
4 min read

Don't fall in the Jackson Hole

B21 Crypto. We help you stomach cryptoassets.

Cryptic ball: profit taking is normal.

Friday we anticipated bitcoin was going to test $51k this Sunday and it reached $50.5k in the early hours of the week, a new high since May 15th. Not bad, right? However, as we write, the original cryptoasset has fallen below $50k, in what's looking like a typical run over of stop orders placed below the milestone level by those who were late to long the break-out. Should you be afraid or not?

Overall, despite the dip, this still looks like a strong move. Indeed, sentiment on Crypto Twitter is overly bullish and that typically warrants caution. But bulls are backed up by a torrent of sexy news. And yes, it's true BTC appreciated 50% in the past month, with some alts more than tripling in value (we're looking at you, AVAX, LUNA, and RUNE). But even if bitcoin ends August with a red week that's fine - it has been in the green since mid-July after all, so that would be normal.

Chart art: hunting stops is normal.

This image displays orders for BTC on five major exchanges during the failed test of $50k. The red line showed major support at that level, as traders felt the orange coin wouldn't fall bellow it. But that wasn't the case, as the market didn't agree $50k should be so easy to win.

Market musings: delaying tapering is normal.

Moreover, it's fine that bitcoin cools a bit, as long as longs as alts don't lose their steam. While some traders are expecting BTC to test $42k in September, we believe the momentum is too strong for that, as you can see in today's visual block. However, we recognise that the last time bitcoin pumped for six straight weeks was last November, so it's possible we start seeing some profit taking this week or right after the monthly close - even if any dip will surely be short-lived.

Lastly, it's important to anticipate a major event happening this Friday: the Jackson Hole Economic Symposium. It's organised by the Kansas City Federal Reserve and many expect the Chairman of the US Fed to provide an update regarding the tapering of its monthly asset purchases. So far, the consensus is that any tapering decisions will be postponed to November, given COVID's third wave. That would be bullish for all markets, but let's wait to read between the lines.

Visual block: accumulation is normal.

As the great Econoimetrics analyst highlighted, on-chain data suggests healthy accumulation. This doesn't deny the chance of a major dump this week or in September, as eventually whales will decide to take profits. But it indicates a dip would be promptly absorbed.

Three things: turning networks into economies is normal.

Tweet tip: thinking long-term is normal.

What about ETH?

Meme moment: buying NFTs is normal like.

VISA didn't expect becoming an active participant in the flippening wars.

New token on B21: welcome, Dogecoin!

Buy and hold $100 of DOGE on B21 and win up to $300. Learn all at

Get started: download the B21 Crypto app!

Subscribe to our newsletter
Follow us on Twitter @b21official
Follow us on Twitter
Join our Telegram group
Find us on Instagram
Watch us on Youtube
Legal Notice
Our newsletter offers opinions and insights from analysts in the cryptoasset space. It is not intended to be investment advice, and should not be treated as such. You must not rely on its information as an alternative to financial advice from a qualified professional. Without prejudice, we do not undertake or guarantee that its information is correct, complete or non-misleading; or that the use of guidance in the report will lead to any particular outcome or result.