Overhead Supply, Everywhere

Louis Sykes
July 21, 2022

From the Desk of Louis Sykes

Whenever we have any discussion about approaching this market from the long side, we're quickly stumped.

In the current tape, there's just so much supply to work through that there's no reason for getting overly bullish on meaningful time frames.

Go back and look at these infamous retests of supply zones; they are no joke.

Don't be smart money's exit liquidity. At the very least, we want to err on the patient side of things until this supply eventually gets eaten through in some capacity.

A big difference that often differentiates mediocre traders from good ones is the ability to sit tight, wait for a setup to form, and follow the money flow into a position.

It's not just crypto.

Everywhere on the risk curve, there's an incredible amount of left-hand supply that must be absorbed.

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Of course, it doesn't matter what I or anyone else thinks. Money flow is the only factor that matters.

Technical analysis isn't a mystical prediction machine. It's simply evaluating whether the circumstances are skewed in our favor in one direction or another.

When it comes to evaluating the current tape, there's really not a whole lot to like with all this unabsorbed and looming supply.

I could absolutely be wrong, and we could steamroll higher from here.

But it's the lower-probability and, more importantly, the lower-conviction setup.

ASC Crypto Members, also read Treat the Pump Cautiously.

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Thanks for reading, and please let us know if you have any questions!

Allstarcharts Team

 

 

 

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