Cryptic ball: survive the squeezes.
The weekend wasn't very volatile and that's good. But Sunday's test of $42k was rejected and that was a bad sign for the bulls. S&P 500 and Nasdaq futures are also indicating further losses in equity markets, as anticipated Friday, which if extended won't bode well for the crypto market. Overall, the next few days will surely prove interesting, with another hearing from the Fed's chair on Tuesday and fresh inflation data coming out this Wednesday, at 13h30 UTC.
Few alts are surviving the carnage and even ATOM failed to break its ATH last Friday night. So, I'm positive that bears will prevail at least until Wednesday, where inflation data may show a peak, potentially causing a last bout of panic and fear in traders around the world. If so, that should instigate capitulation, but, even if not, this is no territory for bulls - unless they are long-term holders. In any case, things will move slowly in the aftermath, and there will be no rush to buy.
Meanwhile, to compound the carnage, BTC has just momentarily failed to hold $40k. No massive liquidations have hit the tape as of now, but remember bears will get more confident. And, if you're shorting note that play is getting crowded as the shift in the Fed's policy becomes more and more understood. While it doesn't look like we've seen the bottom (funding still too positive), be sure to understand what you're doing or risk being squeezed, like those shorting $39.7k moment ago. This could be just a relief rally, so make sure you're safe and enjoy the ride!
Chart art: survive the hikes.
Three things: survive the hype.
- Alex Krüger excellently explains the "very fundamental shift at the Federal Reserve". Must-read.
- Jim Bianco thoroughly goes through last week's epic activity in bond markets.
- Moxie Marlinspike provides a well-argued critical view of web3.