The dumpeeer
3 min read

The dumpeeer

Cryptic ball: the analysooor.

Well, well. It seems bears are attempting to get revenge from yesterday's not so innocuous subject line. Bitcoin and the total market dropped 8% since, prompting many in noisy Telegram groups and on Crypto Twitter to call for doom again. Is this all that the Christmas rally had to give? Or will we bounce without having to first test $45k a fourth time? As always, no one knows. But let's analyse.

To begin, the S&P 500 just hit a new all-time high and Nasdaq looks poised to do the same in the next days - even if 2021 will be the first year since 2016 where tech stocks outperformed America's top stonks index. There are also no potentially bearish events ahead in January, except for the Fed's FOMC meeting at the very end of the month. Secondly, we're still in a low liquidity environment, so it's normal for moves to be more extreme, even in absence of any particular trigger (liquidation cascades aside, which was what happened today).

So, unless you're a scalper, it will pay to be patient. While it's possible we see another test of $45k - which would drive fear to record levels, a little bit like on the fourth retest of $30k this summer - I remain convinced January will open with a nice bullish continuation. But this dip is surely hurting momentum, so the market will remain sideways for a while. What we need to get out of it? Well, the current SUSHI pump reminds me of how the DeFi summer of 2020 produced tales of profits that ignited the current bull market. Is it time for a warm DeFi winter?

Chart art: the raaaaaanger.

We're still ranging until we break out of $52k. Let's just hope we don't need to tap below $45k for the real bulls to wake up.

Three things: the substackeeeeer.

Tweet tip: the multi-chaiiiiiiner.

The multi-chain future is here.

Meme moment: the shooorter.

LMAO, check kingdomdart's thread on -ooooor memes. Must see.

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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.