Slap in the face
4 min read

Slap in the face

Cryptic ball: take that, bears!

What an Oscars night! Yesterday bitcoin rose 5% in ten minutes and, as usual, the rest of the market followed. As often explained last week, it seems spring is here and the animal spirits of the bulls have been reignited, at least for a while. Yes, there's still a lot of risk in the air, but it's time to blossom. Let's analyse.

  • Like last Monday, the bias for this week is bullish, and this setup still favours longs. However, I believe it's more likely we range a little bit, even if with a little upside, following the 18% rise in the last seven days. Why is this?
  • Bitcoin overcame all relevant resistances it had on its near-term horizon and is now up on the year. The next boss is $52k. But right now $48k is also a minor resistance and it's unlikely we jump another 10% straight away.
  • Still, such a move isn't uncommon in crypto and bitcoin is known to slap faces. If we see some alts doing +20% daily moves it's likely traders rotate back to the original orange coin, as it's perceived as a safer investment in times like these.
  • Talking about the times, I must keep on hitting on the uncertainty note. Many are calling this a scam pump, another designation for a dead cat bounce. While I'm optimistic we're seeing a true spring, I also vividly remember a similar recovery in 2018, only to see the market continue crashing later on - so keep that in mind in case you're drinking the Kool-Aid that the bull market is back.

In the meantime, enjoy these profits and remember this is the right environment to set up stop losses. Just manage them well enough to ensure your positions are not cut left and right by those targetting high liquidity zones, i.e. the areas where most traders will place such stops. If you have questions about this matter, then hit reply and I'll try to answer them in the next newsletters!

Chart art: king richard effect?

This is the zoomed-out view of the chart shared last week, isn't it beautiful? $52k is what bulls want to target next. Remember it's likely we see a test of $46k before that, though. 

Visual block: tick, tick...BOOM!

It seems funds are also buying the dip.

Three things: readfast or belfast?

Tweet tip: the tragedy of macbeth.

C'mon, not again!

Meme moment: please don't.

Don't be like Will Smith, think long-term. Joking, Chris Rock deserved it. But do think long-term.

FV Bank: meet us in Miami.

Meet the FV Bank and B21 founders Miles and Nitin at BTC Miami to discuss Bitcoin and banking, from April 6th to the 9th, 2022.

Get started: download the B21 Crypto app!

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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 the guidance in the report will lead to any particular outcome or result.