It's just like September 2017
Cryptic ball: just fear, uncertainty, and doubt.
Like in 2017, sophisticated players know that Q4 has all the conditions of an epic ride in the cryptoasset rollercoaster. And, like in 2017, everyone feels like they haven't been able to load their bags as much as they wanted. Cue the FUD so that prices drop and you have one last dip to buy before euphoria goes through the roof. Did you take the opportunity? Or did you fall for the 1000th China ban?
You likely fell for it. After all, even Bloomberg reported today that "China’s central bank says crypto transactions are illegal". But the official memo was published on September 15th, and, as usual, it is just a restatement of the multiple bans China has tried before. Naturally, the very correlated BTC and ETH dumped 10% to 12% this morning, complicating yesterday's specular bounce. What next?
Chart art: just stocks and bitcoin sitting in a treeth.
Market musings: just wake me up when September closes.
So far, a clear higher low was printed, which makes us feel like Tuesday's low was the week's bottom. But we need bitcoin to close the weekend above $42k, and ideally in the green, i.e. above $47k, to be more confident - especially given that the monthly close is next Thursday. After that, what we wrote Wednesday remains: crypto will continue to pump as long as western equities remain hot.
That's even more clear now that everyone outside conspiracy circles has moved on over the Evergrand debacle. Moreover, it's clear the NFT bubble hasn't popped - yet. And even though funding rates recently turned negative, a sign of bearishness, it looks like this is just an effect of the FUD, with slow traders try to short an already deflated market. To conclude, as Bleeding Crypto reminds us, don't forget China also banned bitcoin in September 2017, before it pumped 6x in Q4.
Visual block: just remember how history rhymes.
Three things: just buy the tip.
- Learn more about the "architecture of a Web 3.0 application".
- Learn more about Twitter's new Bitcoin tipping feature and NFT verification.
- Learn more about "Initial Person Offerings" in Web3's creator economy.