Scouring our charts this morning, we couldn't help see that a lot of coins are getting tight out there.
With this volatility contraction, a big move could be on the cards, in either direction...
Big names like Cardano and Avalanche are wedged in contracting consolidation patterns. The resolution from these will likely set the stage for the coming weeks ahead.
And when we look to Bitcoin, prices have been in a very tight range, and this morning seems to be breaking higher.
Compressions like these tend to proceed quick and violent moves, just like the volatility contraction that we were writing about at the end of July before Bitcoin's monster rally off its lows.
Given that the primary trends are higher across every major crypto asset, the higher likelihood scenario is that we do see upward resolutions in the coming days.
Looking at Bitcoin, if prices are above their September highs of 53,000, we need to remain aggressively long with a target of the former all-time highs of 65,000.
As much as we are price maximalists, we're keeping an eye out for the SEC's decision on a handful of Bitcoin futures ETFs that could get approved as early as the 18th of October.
If any of these ETF fillings get approved, we could have a significant speculative rally that carries prices immediately higher.
The headlines are something to be mindful of in the coming days.
From the perspective of Bitcoin's seasonality cycle, now that we've emerged out of a weak September period, the hottest time of the year for crypto is coming.
We don't give seasonality a lot of weight in our approach, particularly for an asset that's been trading for just over a decade, but it is supporting the bullish evidence that's solidified over the last few weeks.
Bitcoin continues to lead the rest, supporting our view of having Bitcoin exposure in this environment.
There's some clear momentum swinging in favor of Bitcoin right now that we don't want to discount.
With leadership in Bitcoin, there's not much need to be diving down the cap-scale right now, unless a particular coin is showing relative strength.
Let's dive into some of them.
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