Mean reversion is a universal element of the world we live in.

Reversion to the mean is a statistical phenomenon stating that the greater the deviation of a variable from its mean, the greater the probability that the next measured variation will deviate less.

In other words, an extreme event is likely to be followed by a less extreme event.

In financial markets, mean reversion is everywhere. This is especially the case in bear markets when prices dramatically rally following prolonged periods of sustained weakness.

As John Roque, one of the GOATs of technical analysis, would say, "We’re not in a reversion to the mean business. This is instead a reversion beyond the mean business."

Specifically, asset prices retracing to their statistical average isn't the rule, it's the exception. Rather, in most cases, asset prices will often overshoot their "averages."

With crypto markets bouncing over the last week, it raises the question, is this just yet another mean reversion rally, or does this move have some legs?

This is the video recording of our October 28, 2022, All Star Charts Crypto Weekly Strategy Session.

We came into the week anticipating some volatility expansion out of this range, which could potentially be playing out given yesterday's action.

This was the largest daily price change for most coins over the last month. Ethereum's broken out of this short-term trading range, with Bitcoin following closely behind.

It's nearly that time when we get a fresh batch of monthly candlesticks.

We only perform this exercise once the candlesticks are completed. But, sometimes, you want to cheat and peep a few days early.

What's great about monthly candlesticks is that it takes us a mere half hour to get through them all, which is only six hours a year.

We can't emphasize enough the level of value-add for such a brief amount of time.

It forces us to take a step back, and it gives us no choice but to identify the direction of the primary trends. We use them to put shorter-term trends into context, which is especially important in this choppy price action.

So, no matter your time frame, identifying primary trends and then working from there is a huge advantage over a blind bottom-up approach.

In the current state of the crypto markets, the overwhelming majority of names are in greater than 80% drawdowns.

Solana is down 90%.

Cardano is down 90%.

Fantom is down 95%.

Harmony is down 96%.

Nothing's changed.

That's it -- that's the post. There's nothing to discuss.

Bitcoin and the rest of the asset class are still a choppy mess. There's no conviction in taking longs until price action can shape up in a more bullish manner.

Given the lackluster market conditions, this letter will act as yet another brief interim update.

This is the video recording of our October 21, 2022, All Star Charts Crypto Weekly Strategy Session.

It wasn't long ago that we said Bitcoin was at the edge of the abyss.

A month on, the same can still be said about most of the asset class. Just go chart by chart, and you'll see a ton of coins sitting at their lows.

This is such an illiquid tape, with only the heartiest of HODLers remaining, that it wouldn't take much selling to send these laggards on another leg lower.

Cardano, Decentraland, Gala, Kyber, Polkadot -- just a little push is all it'd take...

There have been no developments since last Monday, so today's note will be a brief interim update.

This is the video recording of our October 14, 2022, All Star Charts Crypto Weekly Strategy Session.

Earlier this week, we noted that our breadth metrics pointed to a weakening within the alts.

Crypto markets will be forced into making a decision sooner rather than later. Bitcoin's price stability just reached two-year highs.

Considering the mean-reverting nature of volatility, it's only a matter of time before this tight range resolves.

As we turn the page on another quarter in the crypto markets, we leave behind yet another period of aimless price action.

Bitcoin ended the period unchanged after giving back some of its slight gains earlier in the quarter. The leadership was outside Bitcoin, as Ethereum sported some modest gains.

Other names, like Polygon and Binance, are well above the lows achieved in the mass capitulation event in June. This came after Ethereum completed the transition from Proof-of-Work to Proof-of-Stake.