As market participants, we have to keep an open mind and remain nimble as new data comes in.
There’s nothing wrong with flipping our approach as the weight of the evidence shifts. In fact, we pride ourselves on never being dogmatic and always keeping an objective lens on the market.
Sometimes it’s irresponsible to not be aggressive in our positioning, while at others, there’s nothing wrong with sitting on our hands and waiting for new data to come in.
And that’s precisely where we stand with Bitcoin right now.
With prices pushing up against support from February and April, we’re anticipating some form corrective action from this impressive rally at this pretty logical level of overhead supply.
How long will this former support act as resistance?
Will it be a day, a week, a month, or longer?
We just don’t know.
But the best thing of all is that no one else does either…
At least in the coming weeks, we think it’s prudent to rotate some of these profits in Bitcoin into the names that have already resolved higher from their respective levels of overhead supply and are showing more favorable risk vs reward characteristics.
48,000 is our new floor.
We only want to be long Bitcoin if it’s above there, otherwise, we leave it alone for now.
But if we start seeing Bitcoin move into the 50,000’s, there’s not much room left to all-time highs. By conducting some century-old rabbit mathematics, the medium to long-term bias for both Bitcoin and the other coins would be substantially higher if and when buyers can quickly absorb the overhead supply at this new inflection point.
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