There’s no denying many alts have posted sizeable gains over the last week.
But the fact remains that the appropriate conditions have yet to align for us to flip the book long.
Perhaps the best example of this is the recent move in Gala $GALA.
Expert technical analysis of financial markets by JC Parets
by Louis Sykes
There’s no denying many alts have posted sizeable gains over the last week.
But the fact remains that the appropriate conditions have yet to align for us to flip the book long.
Perhaps the best example of this is the recent move in Gala $GALA.
by Louis Sykes
Over the last week, we’ve seen momentum flow down the cap scale in crypto markets. Many altcoins have posted sizeable gains coming from historically skewed levels.
This is happening in the context of a tightening volatility regime, where price stability in Bitcoin, Ethereum, and most alts were at some of the highest levels in recent history.
by Louis Sykes
We’ve said it time and time again.
It’s all about the US dollar!
When did the NYSE new highs list peak? When the dollar bottomed…
When did equities bottom? When the dollar rolled over…
It’s not rocket science.
I don’t care why it’s the case because the correlations are so evident. It’s a fundamental reality in this tape: A weak dollar is positive for stocks and crypto, while a strong dollar pressures those assets.
Now, consider: What have been the defensive assets in this market?
The Japanese yen? Nope.
Gold? Not until recently.
Bonds? Hell no.
Whenever shit’s hit the fan, that money has flowed into the US dollar.
It ain’t rocket science, folks.
by Louis Sykes
Make no mistake: Volatility is around the corner.
While price action is trending in nature, volatility mean-reverts. Periods of low volatility precede volatility expansions and vice versa.
So, where do we find ourselves today?
Bitcoin’s price stability is at its third-highest level in the last five years.
Have you noticed?
Crypto volatility has completely died off. You’d probably get more juice trading the equity indices than shitcoins these days.
These extremes in volatility — or lack thereof — don’t last long.
So, we’re placing a high likelihood that Bitcoin will make a decisive move in the coming weeks.
And how are we looking to profit from this upcoming move?
by David
This is the video recording of our December 30, 2022, All Star Charts Crypto Weekly Strategy Session.
by Louis Sykes
This market’s been so easy, right?
You literally had to do nothing, and you’ve outperformed some of the most sophisticated crypto trading firms on the planet.
By loss realization and institutional contagion, this is the single worst crypto bear market in history.
So, if you’re still here with a few dollars to your name, take solace in the fact that you’ve done a better job at risk management than some of the most intelligent players in the space.
For us, our process has been incredibly simple.
by David
This is the video recording of our December 23, 2022, All Star Charts Crypto Weekly Strategy Session.
by Louis Sykes
There’s no denying it.
The US dollar has been an incredible reflection of financial conditions this year. By extension, the correlations between the dollar and risk assets have held firm.
Equities and crypto were under pressure whenever the US dollar trended higher in 2022.
And when the dollar was correcting, equities and crypto were trending higher.
We don’t need to overcomplicate this.