Snowflakes in an avalanche
3 min read

Snowflakes in an avalanche

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.

Bulls have successfully demonstrated they're very interested in buying BTC at $46k for the third time this week. This is a great sign, but we can't keep testing that level much more or else they will run out of firepower. Is it finally time to trap the bears?

Three things: follow the hype.

Tweet tip: follow the whales.

Please Su, don't use us as exit liquidity.

Meme moment: follow the musk.

LMAO, Elon Musk just shamelessly right-clicked this meme shared on Reddit six days ago and made it spread like wildfire yesterday. Surely the Reddit OP did the same, though.

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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.