Cryptic ball: follow the triggers.
Well, yesterday I wrote the Powell pump could retrace over the next few days but I wasn't expecting that to be so fast! Just one hour ago, the crypto market was down nearly 6% and most assets had fallen back to Monday's levels. The dump was scaring many but, as of writing, there has been a lot of spot bidders successfully supporting BTC around $46k - a key level of this range, as shown below.
What now? For the moment, bulls have won the fight - with some alts like AVAX recovering more than 12% on the day. But the battle will last the whole weekend. And you know how weekends can be particularly volatile in crypto, as there's lower volume during that time of the week - especially with Christmas around the corner. Even if I'm not expecting any major dump, it's still possible that this slow bleed can strengthen the bearish side of the force and push bitcoin to test $42k.
So watch out. But, if bulls keep fighting well, then we could finally see that short squeeze I've been writing about playing out to trap these late bears! Still, remember today's retrace happened as we're experiencing the slow-bleed I outlined ten days ago, and initially warned about on November 26th, in case BTC's $52k support failed. To get out of it, bulls need to capitulate and until such moment is clear (e.g. through negative funding rates again or if stocks crash more) it's just chop territory - at least until Christmas is behind us or $52k below us
Chart art: follow the wicks.
Three things: follow the hype.
- Benjamin from Jarvis Labs still believes funding rates need to turn negative on Binance for BTC to resume its uptrend.
- The Block published its 2022 Digital Asset Outlook, a massive, +150-page report on all things crypto. Good, but more like a 2021 Year in Review.
- Multicoin Capital just shared the videos of their latest Multicoin Summit. Watching them all over the weekend is a must!