Some micro-market cycles
3 min read

Some micro-market cycles

Cryptic ball: just some scenarios.

The crypto market's recovery has continued to play out, with total market cap up 4% over the past 24 hours. Bitcoin is now approaching $52k, which is the mid-level in the chart I've been sharing since at least last June. This is has been a key level since last March and also marked this September's local top, so many eyes are on it and its surroundings. If we conquer it immediately, that would cement a V-bounce that would surely bring euphoria back to the sleepiest of the bulls.

Conversely, if we fail to break it and stay above $47k, a zone which would give comfort to alternative cryptoassets to continue pumping until more institutions buy bitcoin, then it's likely that this December we come to experience a slow bleed across the market, at least until BTC tests the $42k support again. Note such a level can't be broken for the bull market to continue, as that would mark a change in sentiment. We also need to conquer $60k asap - as Posty illustrates.

I'll keep referring to these scenarios as Christmas approaches, and review them shall the need arises. But, overall, and as explained Friday and yesterday, I agree with Kyle Davies when he says it's safe to leave the ark (check today's Tweet Tip). And I recommend reading Santiago Santos' post, shared in our Three Things below, about "how to survive crypto winters and other bear markets". As the author says, it's not that we're in a bear market, but these "micro-market cycles" can have the same effect on an investor if they don't have a strong thesis.

Chart art: just some quantitative easing.

Now you can see just how hard the US Fed pumped the economy since 2019, even before COVID hit. What will be the aftermath? Courtesy of Pantera Capital.

Three things: just three steps to the future.

  • Bitwise's CIO Matt Hougan explains the recent crash in a sharp video you can share with your friends who still don't understand crypto.
  • Packy McCormick puns the Pareto Frontier away in a sharp post explaining why Web3 makes money fun again and how that attracts talent.
  • Benedict Evans shared his annual presentation "exploring macro and strategic trends in the tech industry". This year it's about Web3 and the metaverse.

Tweet tip: just some flushing.

Meme moment: just some old cartoon.

This meme was first printed in 1993 and I came across it right after sending yesterday's newsletter with the article about eGirl Capital and its cartoon owners.

FV Bank: meet us at CoinAgenda.

FV Bank, a sister company to B21, is sponsoring CoinAgenda in Puerto Rico.

Get started: download the B21 Crypto app!

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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.