Fear is the path to the dark side
4 min read

Fear is the path to the dark side

Cryptic ball: are you afraid?

Bitcoin continues hovering around $57k. While we saw traders distributing their profits at this level between February and May, meaning it's possible the same is happening now, I still believe we're at an accumulation phase. At least if the support at $51k isn't breached over the coming weeks. Although, ideally, BTC would bounce earlier, to avoid losing the 50-day moving average, currently lying at $53k - which is also aligned with the bottom of the current diagonal channel.

If the above sounds confusing, just check today's chart and you'll see the bigger picture. Remember that, typically, one buys an asset when it is approaching the support level of a trend and vice versa. This implies that traders will lose confidence in the trend if the price falls below support and will go wild if the price rises above resistance. And, overall, I continue bullish because I see no reasons for the trend to fade right now. But note that any piece of bad news may change that.

For example, back in April, we had the IPO of Coinbase, which was aligned with bitcoin's top and was, retrospectively, a sell-the-news event. This was further compounded by the meme coin euphoria in early May that was widely covered here. Some believe Taproot was such an event now, but the scale of the news was different. And, right now, there's more fear than greed in the market, something also common when an asset's price approaches support - just like when BTC was testing $30k during summer and most traders felt like the end was near.

But the end of the month may prove to be volatile, as whales may try to wake up North American traders from the Thanksgiving hangover, maybe even going as far as offering us some Black Friday discounts at the end of this week. I'm not expecting the carnage to be significant, and I'm inclined to agree with Posty's analysis - which seems to indicate we're just repeating this September's pullback. Let's hope that's the case, but let's also be cautious and ready to buy the dip.

Chart art: are you blocked?

Channels are quite powerful because many traders rely on them to monitor trends.

Three things: are you playing to earn?

Tweet tip: are you open?

Again, I don't agree with Limitless, but I like to be exposed to these scenarios to check my bias.

Meme moment: are you helping the herd?

Daniel Matuszewski is the co-founder of CMS Holdings, one of this industry's largest funds, and runs its Twitter account. Must follow for good memes and cryptic insight. Let's just hope they aren't teaming up with Three Arrows Capital to publicly say the bull cycle is still on, while privately disposing of their holdings. I believe that isn't the case, or else someone at an OTC desk would have started to sound the alarms.

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