Here's this week's crypto roundup. It's an opportunity for us to take a step back, set aside the distractions, and delve into the key charts shaping the crypto complex.
There's plenty of bearish action taking place in the crypto market. Many coins are breaking down and the technicals are carving out topping patterns.
But in the face of this weakness, I emphasize we're still in a longer-term bull market and selloffs like these have been favorable buying opportunities for traders.
Heading into last week we were mindful of the compression in volatility which meant an increased likelihood for larger price swings. Further, we were being patient given a number of our data sets were pointing to mixed signs.
We've seen selling continue, particularly ramping up this morning.
I'm maintaining my neutral short-term bias. My data sets are mixed, with some indicators pointing in bullish territory while others skew bearish.
Volatility has contracted to extreme levels. Given volatility's mean-reverting nature, we're likely going to experience an expansion in volatility in the short-term.
I'm being patient and letting the weight of the evidence tip me to a more bullish stance.
Bitcoin looks set to end the week down as large-cap growth is driving up the U.S. equity indices. There's a substantial divergence taking place, and I'm betting that Bitcoin catches higher; I just need to see this manifest with a breakout above 73,000.
I keep reiterating the strength in Bitcoin mining stocks. While the short-term trends look set to consolidate in the coming weeks, they have become a favorable sector to craft a more longer-term bullish thesis in the crypto markets.
Here's this week's crypto roundup. It's an opportunity for us to take a step back, set aside the distractions, and delve into the key charts shaping the crypto complex.
This was a rather positive week for the crypto complex, with Bitcoin looking poised to break higher.
At the same time, crypto stocks seem to be front running a Bitcoin breakout, particularly as merger activity in the mining sector has buoyed the price of these stocks.
Last week saw short-term weakness manifest in crypto markets. For the time being, I still have a neutral short-term bias in the context of a longer-term bullish outlook.