It’s fair to say that bulls scored some points in the last few days, with Bitcoin moving back up to the upper 30,000’s.
Throughout this recent rally, it was pretty clear that there was a lot of squeeze-action going on, as over $900M in Bitcoin shorts were liquidated in the last 24-hours…
Or as we like to say around here, from failed moves come fast moves in the opposite direction:
Just take a look at momentum registering its highest reading since April, following that notable bullish divergence…
It’s also constructive to see Ethereum holding its head above 2,250, which is been a critical long-term level:
Seeing buyers dig in where they needed to is a great sign of much-needed progress for this beaten-up asset class.
But, there’s still work to be done.
Particularly in the short term, Bitcoin is still trapped beneath overhead supply of 41,000, which is the upper level of its recent range. And then eventually, buyers will need to reclaim this critical 46,000 level, which is where Bitcoin initially broke down in May:
So until we see further control from buyers above these levels, there’s nothing overly attractive about putting our money to work in the near term. The risk vs reward just isn’t there at current levels.
The bottom line is that things are messy, but this is definitely a positive stepping stone toward potential further upside.
Moving on, every Monday we run scans to identify pockets of leadership – either to the up or downside depending on the environment.
We typically scan for the largest weekly gainers and single-day moves throughout the last week to keep things simple. But considering bulls came out in troves last week, we’ve included some additional metrics:
- We filtered our universe of cryptocurrencies by their return since Bitcoin bottomed last week
- Whether they’ve outperformed Bitcoin during this period
- And their drawdowns from monthly and 52-week highs.
Here’s a snippet of the top 15 strongest names in this week’s scan:
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