A stable lion
3 min read

A stable lion

Cryptic ball: one, but a lion.

It seems we got that squeeze to $46k right away! But the lack of consolidation meant bulls didn't have time to rest and so did they get exhausted. The original cryptoasset is back at $43k, the level of yesterday's newsletter, after having briefly pumped nearly 6% during Asian trading hours, only to lose back all the gains. Most alts have suffered extended losses as they amplify the moves of bitcoin. And most Binance had more shorts than longs over the past day. Is this bad?

Not so much, even if the major stock market indexes are still consolidating below what can be considered safe. Because futures are now pricing in five reference interest rate hikes in 2022 - so one could assume there's not much fresh FUD that could ruin the party (even seven hikes are 17% priced in already). In other words, as more traders understand that, things should be smoother, especially if bond markets are right in expecting the current inflation pressure to fade (we have a new US Consumer Price Index print coming out this Thursday).

Moreover, gold also appreciated 2% this past week and looks poised to break out of the current bullish pennant and test new all-time highs later this year. All-in-all, it's time to consolidate and ensure that $40k holds on higher timeframes in case bears decide they want to bet more. I feel such an attack is unlikely, at least as long as new negative and material information comes out. But alts need to step up in order to entice people to buy - or else fear may build up again.

Chart art: squeezed, but not pressed.

This morning a got a lot of alerts for big-sized liquidated longs on Bitmex through this nice bot. Just a small amount in the grand scheme of squeezes, though. Moreover, some are correlating the dip with the arrest of a couple that had $3.6 billion in cryptoassets stolen from Bitfinex. 

Three things: solo, but not alone.

Tweet tip: bullish, but not forgotten.

Pentoshi is bullish right now, but I agree with him that such a doomsday scenario would also have a silver lining or even several 100x moon tickets.

Meme moment: awaken, but a zombie.

So it rises. Let's just hope this is not a zombie apocalypse!

B21 App: convenient, but also safe.

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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.