Icarus or Aidos
3 min read

Icarus or Aidos

Cryptic ball: hubris or modest bounce?

What a day for bitcoin bulls! The orange coin is leading the market with a 12% pump like in the good old days and few alts have gained more than it. As explained yesterday, Amazon's Q4 earnings came out after the US close and were spectacular. Its stock popped as much as 16% so far, most of it right after the news - even if, to be fair, it had fallen 7% Wednesday impacted by Meta's poor results.

Naturally, such a performance ended influencing the rest of the market, helping the S&P 500 and the Nasdaq 100 recover part of the Zuckerberg-induced drop. Bitcoin also responded immediately, removing that uncertainty I wrote about and paving the way for that squeeze to $41k I've last described on February 1st to play out. After some hours stuck at $40.5k, bulls are trying to fly closer to the sun now.

Will they succeed and conquer $42k again? Or is this relief rally destined to fall from the sky like Icarus? It's unclear, but I believe the weekend will be volatile. The stock market is closed and even TradFi traders will be looking for the next +15% move like the adrenaline junkies they are. More interestingly, risky assets across the board are pumping even though strong job market data in the US just came out - which means the Fed will surely follow through with their tightening plans.

This could be the beginning of the decoupling from monetary policy bulls have been waiting for. But for that to work out then at least $39k must hold over the next days in case bears push back one more time. In the meantime, remember speculative alts are still suffering from excessive froth, so if you want more risk at least make sure you're betting on high-quality projects. Enjoy the weekend!

Chart art: resistance or new support?

$39k was the previous resistance of this range, so bears will try to push price below it to break the confidence of bulls. Or so the meme goes.

Three things: or just two?

Tweet tip: or career advice?

Learn to code anyway and be a better trader!

Meme moment: or just Q1 2022?

Let's hope the market has priced in all of the uncertainty for the year ahead.

From an outright ban on cryptocurrency in 2016 to an upcoming bill for crypto taxation - the Indian Government’s stance on digital assets has changed considerably over the past few years.

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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.