Kung Flu fighting
3 min read

Kung Flu fighting

Cryptic ball: bulls vs bears.

What did I tell you? Total market cap is up 3% since yesterday's newsletter was sent out, with bitcoin looking poised to test $45k tomorrow. The pump took place as the CPI's December data showed year-on-year inflation in the US was 7%, the value expected by the market. Yes, it's record-high and bad, but it was priced in. That's why the relief rally could continue across all markets, with the S&P 500 also reacting positively to the bearish news. But how long can the short squeeze last?

Funding rates are mostly negative for BTC even as the price is rising, showing how bulls are confident enough to pay for the privilege of betting on a price increase. The US Dollar Index is also falling, having hit a two-month low, suggesting global markets have made peace with inflation fears and are no longer buying as much of Uncle Sam's currency as an investment of last resort. So keep an eye on the dollar's price as it is showing an inverse correlation with bitcoin and other risky assets.

Lastly, note the rest of the week will likely be volatile, as this bounce is contingent on how bitcoin fares on the test of $45.5k, the support of last month's sideways range which has now turned resistance. If we enter the range on the first try, bulls will be confident enough to test its upper level, around $52k. But even then we're not out of the woods until +$60k is conquered. Meanwhile, if the $45.5k attempt is clearly rejected, we can expect another fall towards $42k - with alts amplifying any one of these moves. Beware of the chop and watch out for lower highs.

Chart art: bots vs humans.

This is why I like using 4h charts in this section.

Three things: web2 vs web3.

Tweet tip: growth vs value.

Puru covers traditional stock markets and has been warning about bears for a while. Not sure if he is right, but it's an interesting opinion to consider. Meanwhile, note NDX is Nasdaq's top 100 stocks index, while COMPQ is Nasdaq's composite index which includes most stocks listed in the tech-focused exchange weighted by market cap. 

Meme moment: dips vs falling knives.

Beware the overly confident traders.

B21 App: bitcoin and alts.

Check out some top-performing alts on B21 over the last year.

Get started: download the B21 Crypto app!

Subscribe to our newsletter
Follow us on Twitter @b21official
Follow us on Twitter
Join our Telegram group
Find us on Instagram
Watch us on Youtube
Legal Notice
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.