Cryptocurrencies are every technical analyst’s dream.
No circuit breakers.
Countless technical tools.
No arbitrary fundamental models.
No government intervention.
Pure supply and demand at work.
Without getting too philosophical, there’s a trend in traditional markets toward the democratization of financial information. Nowadays, people have almost the same access to data and platforms as the bigger guys. There are projects like Koyfin that are leveling the playing field and giving the small guy opportunities they didn’t have just a few decades ago.
I think there’s a strong argument to be made that the power dynamic in crypto is completely reversed. It’s retail that’s been the big winner, and only now are we seeing early signs of institutions dipping their toes in. And, contrary to the narrative that’s been spread, retail is gaining more control of the total supply of Bitcoin, while the most significant trader cohorts continue to distribute over time.
Whales do not control Bitcoin.
And from a data perspective, where do we start…
There’s an emerging industry of on-chain analytics arising, where we’re able to see capital flows before they hit the market. An often underappreciated element of crypto is the transparency of transactions that allows us to break down what’s happening with incredible detail.
Or how about order book analysis? There’s a growing community around sites like TradingLite that can visualize resting limit orders to give traders a heads-up on where there may be price congestion, accumulation, or distributive action taking place.
Retail will always be more nimble than institutions. It’s easier than ever for the small guys to trade around whale orders, which seems like a big advantage to me.
And let’s not forget the single most important technical indicator of all, price.
Without all the CEOs, earnings, and discounted cash flow models, this group of digital assets trades cleaner than any other asset class I’ve encountered.
People have a misconception that anything other than a price chart is fundamental. But let’s not forget that technical analysis is the study of the market–and therefore its participants. Sentiment, on-chain, and order book analysis are all technical, NOT fundamental.
Cryptocurrencies are the first asset class in the world with this level of transparency of financial information.
It’d be a waste to not take advantage of it all.
Encountered any cool stuff out there?
Video Games + Crypto = Uptrend
Imagine going back in time and asking your younger self a few years ago their thoughts on a video game where teenagers breed and battle digital pets and sell them as NFTs having a $5B market cap. You’d probably be met with some deep confusion.
It even sounds crazy today, right?
But let’s not forget, we’re only in this for one objective: to make money.
And make money they have. Axie ICO’d at just 13 cents and is trading at $73 today.
It’s not often we see uptrends like these, but when we do, we want to find ways to be involved…
The levels are well defined for a tactical trade.
If AXS is above 70 bucks, we’re long with a target of the former all-time highs of 94.