Cryptic ball: everyone is bearish now.
Yesterday's second attempt at testing $60k fell short by $1k, pulling bitcoin down 3% on the day, with the average alternative cryptoasset following the orange leader by that same percentage. Sentiment remains in fear territory and Adidas has just changed its Twitter profile picture to its Bored Ape Yacht Club NFT; something that many are seeing as a sign the top is here, at least for NFTs.
It's also interesting to see that Jack Dorsey's announced departure from Twitter is all about Bitcoin: Square - the other company he is CEO of - has just rebranded to Block, although the Square brand will be maintained. More interestingly, Square Crypto - a subsidiary - changed its name to Spiral, as it's a business unit solely focused on supporting "open-source projects aimed at making bitcoin the planet’s preferred currency", and the reference to "crypto" was a source of confusion.
Indeed, it's typical to see such announcements close to the top of a bear market, as major players are late to embrace the fad and, when they do, many perceive this as a good time to sell. But, as explained yesterday, while we may see a bearish December if we fail to see a sustained pump until the end of the week (especially with open interest near all-time highs and a surge in exchange inflows), it's also the case that we're far from a cycle top, as you can see in today's chart art.
Moreover, it's good to see the S&P 500 is bouncing hard after hitting the key support level that its 200-period moving average on the 4h chart has been since June 2020. To be fair, it was also the worse two-day fall since October 2020, but I'm pretty positive central banks won't let equities ruin this year's Christmas dinners. And such a stock market recovery would surely contribute to a crypto pump. So, make sure you have a plan in case BTC breaks $53k again, but otherwise keep researching and preparing for the next leg up.
Chart art: everyone is afraid now.
Three things: everyone is self-sovereign now.
- Lyn Alden criticises proof-of-stake blockchains.
- Kraken Intelligence helps you set up your first Bitcoin node.
- Nature Magazine maps the NFT revolution (yes, that Nature!).