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.
Three things: solo, but not alone.
- Sandra Leow provides another great "dive into the Cosmos ecosystem".
- Mario Gabriele provides another great "piece on the 'solo capitalist' movement".
- The DeFi Edges provides another great "list of cognitive biases in trading".