Cryptic ball: butteryk.
As explained last week, bitcoin was poised to test $22k over the weekend and that's what we got Sunday. While volatility resumed today, as lacklustre stocks dragged crypto down a bit, the breakout seems to be holding up! What's next?
- Firstly, check today's charts. One can't miss that ETH, Ethereum's native token and this industry's eternal runner-up coin, is again outperforming BTC. Both bottomed exactly one week ago, but their returns have differed wildly!
- While ETH is up nearly 60% since July 13th, bitcoin has only appreciated roughly 20%. This is not bad for a bear market, not bad at all, but it's good news that ether is amplifying the strength of the leader with such vitality!
- Yes, following its logistic growth phase, ether has typically acted as a leveraged version of bitcoin, gaining more during bullish times and vice-versa. But it was still stuck in the same boring range for the past month!
- Now that the breakout has set it free, let's see how far the good old Ethereum narratives can push ETH during summer. Part of the pump can be explained by the long-awaited Merge, which I often wrote about, being finally scheduled!
- This important update to the leading platform for decentralised applications, which will contribute to its scalability plans, is now planned for September 19th - if it isn't postponed again, that is. So far, the market is optimistic about it!
Lastly, for the week ahead don't forget that stocks are looking tipsy - especially after Apple announced hiring and spending cuts. As you know, weak equities will bring crypto down to the range - at least until the correlation is over.
Chart art: watch out for barts.
Three things: watch out the shift.
- Alex Krüger explains why "it should be obvious now the bottom is in".
- Nat Eliason explains "understanding and profiting from hype cycles".
- Ben Lilly explains why "the market is shifting".