It’s hard to ignore when the second-largest component of an asset class makes all-time highs for the first time in 6 months.
That’s exactly what Ethereum has done, and Bitcoin isn’t too far off.
Expert technical analysis of financial markets by JC Parets
by Louis Sykes
It’s hard to ignore when the second-largest component of an asset class makes all-time highs for the first time in 6 months.
That’s exactly what Ethereum has done, and Bitcoin isn’t too far off.
by Louis Sykes
The buzzword over the last few days has been the “Metaverse”, but what is it, and why should we care?
Breaking all the headlines last week was the big tech news that Facebook was changing its name to Meta, realigning it with its future goals and ambitions. The metaverse is seen as the next iteration of the internet through virtual reality, primarily as a new way of experiencing the world of social media.
Following all this talk, virtual reality and gaming cryptocurrency protocols have caught a nice bid, with Decentraland and Sandbox up over +320% and +250%, respectively, since the Facebook Connect event.
And just take a look at the explosion in google searches about the metaverse:
This has acted as an immediate tailwind for the crypto and decentralized protocols pushing this technology and has certainly been a pocket of the asset class that is garnering plenty of attention.
We may not be early to this entire metaverse rotation, with coins like MANA and SAND having already pumped, but there are additional names in this space that are offering us favorable risk vs reward opportunities to ride this momentum higher in the coming days and weeks.
Let’s jump into some of them.
by Louis Sykes
The market is still constructively absorbing overhead supply, which hasn’t been surprising to see take place.
Periods of consolidation like this allow sentiment and positioning to cool down while the market prepares for its next leg higher. If Bitcoin is above 59,000, we’re making the bet that the shakeout is in the process of completing, and prices will eventually move back to their former all-time highs above 65,000.
But as we’ll walk through in today’s note, we’re waiting for prices to ultimately reclaim 65,000 before we hold much conviction on further upside. [Read more…]
by Louis Sykes
In yesterday’s note, we outlined our tactical short if Bitcoin was below 59k.
We gave the bears the benefit of the doubt, but they couldn’t keep prices under 60k for long at all.
We have no shame in being wrong and flipping our approach as new data comes in. In fact, we pride ourselves on always adapting to new evidence and never being dogmatic. The quicker we know we’re wrong the better, because we can move on to bigger and better opportunities. In this case, we knew in just a few short hours!
This seems like a textbook failed head-and-shoulders pattern right now:
We like it best when patterns don’t work, because it can create a major whipsaw that can send prices immediately higher. For a deeper dive into why this is the case, read this old post of ours.
So, with our shorts positions quickly closed, it’s now irresponsible to be short if Bitcoin’s above 60k.
Given that bears couldn’t get this done, we now need to give the benefit of the doubt to the bulls.
If that upside momentum wanes and prices fall back below all this support, then we can begin our discussions of having a more bearish outlook.
But, looking at the data right in front of us, this appears to be a failed breakdown, and now the bias is higher.
by Louis Sykes
Over the last week, we’ve raised attention on the increasing leverage being introduced in the derivative markets elevating the downside risks of the overall crypto market.
We were seeing this with record-high open interest across the board and excessive funding in the face of declining prices.
This morning, we’ve seen this downside risk play out in some respects, with $200M worth in Bitcoin positions getting liquidated over the last 24 hours, quickly sending prices below 60,000.
by Louis Sykes
For the most part, traditional markets have been a fat mess for the better part of this year.
That’s why crypto has caught our attention so much in recent months: It’s stood out as a beacon of alpha.
Whether or not you’ve been invested in crypto, chances are you’ve probably heard all the chatter about Solana – and for good reason. It gained a whopping 700% from its July lows in just under two months, making it one of our best trades of the year.
But, when you dive down the cap scale, there are so many opportunities shaping out just like how Solana was a few months ago.
Harmony is one of them:
by Louis Sykes
All-time highs can be messy, and many times, the breakout comes after the shakeout.
So will it be like this?
Considering the accumulation taking place by long-term spot investors on-chain, it’s certainly looking that way.
Yesterday we saw a notable outflow out of exchanges as investors continue to scoop coins off exchanges and into cold storage to HODL.
Not bearish.
So if and when Bitcoin resolves higher back above 65k, we’ll be positioned aggressively long both Bitcoin and in quality alts.
We’re talking Ethereum, Solana, Harmony, Avalanche, FTX, Algorand, and Elrond, among a few others.
There’s likely to be a ton of alpha in those names in the coming months.
If this new bull market is the real deal, the alpha will be in holding long-term spot positions in leading, quality alts, not in swing trading messy ranges.
Buy the all-time highs.
Keep it simple, and this bull market will treat you well.
Exciting times ahead for crypto, get ready for price discovery.
by Louis Sykes
Bitcoin officially made an all-time yesterday, eclipsing its first-half highs around 65,000.
The importance of this cannot be overstated.
The question is whether or not Bitcoin can stick the landing. It’s likely to be a process.
Our Top 5 Crypto Index is also on the verge of completing this major base.
Over longer timeframes, this price action is far from bearish.
Over the last month, we’ve argued that there’s evidence Bitcoin could lead the altcoins.
We’ve seen this play out, but it looks like Bitcoin could be due for a rest relative to its counterparts.
Rotating Bitcoin profits into the coins showing relative strength makes sense right now:
Let’s run through some of them.
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