Cryptic ball: higher lows are good.
The second day of spring is upon us and bitcoin is finally trying to break $42k. Yesterday I mentioned this week's price structure looked like it would favour longs and so far that's working out. But we need more confirmation. Why?
- On the one hand, BTC hasn't closed a day above this key level since February 28th, shortly before euphoric bulls got trapped after it became clear Russia's invasion of Ukraine wasn't going to be just a special operation. In other words, macro factors still influence cryptoassets - so let's keep following the conflict.
- On the other hand, bitcoin (and remember crypto follows the corn) is still in a clear downtrend. Zooming out, the first step to break it is to successfully conquer $46k. Even before that, bears are still pushing back, having aggressively sold BTC today on the two occasions it got above $43k. Will the third attempt be equally punished? Let's hope not, but be prepared for it.
All-in-all, it's good that bulls are at least fighting a bit. Even if 2022 gets worse I'm confident it's time to bid winter goodbye, at least for a while - as you can see from today's chart art. Then summer doldrums may come as usual, bringing peace and quiet to the developers building this space! But until then...
Chart art: low interest is good.
Three things: expansive universes are good.
- Check all of Jason Choi's thoughts on crypto investing.
- Check all of Nic Carter's thoughts on crypto mining (and ESG)
- Check all of Simon de la Rouviere's thoughts on building NFT universes.