Cryptic ball: sidelined bulls are waking up.
Over the weekend, bitcoin continued testing the lower bound of the trend I've highlighted Friday. Many were afraid bears would strike hard on Sunday, but as more and more people started turning bearish it became more interesting to liquidate these late shorts. And that's what happened Sunday night, UTC time, when BTC finally broke below the $53.5k support. Longs were stopped and fresh shorts were opened at that level, which incentivised bulls to start pumping the corn, which rose 8% until the weekly candle closed - causing the highest number of shorts (still a small amount, though) to be forcefully closed since November 8th.
That was good, but what's better is that this Monday the bulls continued. As you can see below, the original cryptoasset has finally overcome the diagonal resistance it was facing for the past 20 days, after November 10th's all-time high. Now, as explained last week, this might soon invalidate the dead cat bounce scenario. The first hurdle has been overcome, but we still need a higher high above $60k to change the bias of those concerned with short-term price action.
Fortunately, on the other end of the time preference spectrum, it's good to see that Michael Saylor continues buying bitcoin. Microstrategy's CEO just announced he "recently" bought 4,000 more bitcoins for $414 million; just some pocket change, right? While that's just a drop in the weekly cryptoasset flows, it signals confidence in a market that was needing it, after Moonvember's meme failed to blow our charts up. Lastly, note tomorrow is the monthly close. I'm not anticipating much volatility given what has happened over the past days, but let's keep an eye out!
Chart art: but we're not out of the woods yet.
Three things: it's all fun and games.
- After DeFi, it's all about GameFi. Check this great "Explain it like I'm 5".
- After reading about it, it's all about following the builders. Check this great list of web3 founders.
- But if you still haven't wrapped your head around the future of the internet, check these "five mental models for Web3", by Chris Dixon.