Over the last two weeks, we've seen Bitcoin fall from 69,000 to an intraday low of 55,000, acting as a serious headwind for most of the asset class.

Despite this, spot flows have remained strong throughout this volatility, and there's a growing divergence between investor buying and price action.

Selling pressure appears close to being exhausted, and given the developments we'll outline in this update, the conditions are looking increasingly ripe for upside in the coming weeks.

If you're a technical trader, you don't need to pretend to understand a narrative.

Your only job is to follow the money flow, and as long as you're making money, who cares what the underlying fundamentals are.

We're in the business of making money, not to sound smart to your friends at parties.

Outside of the sector and basic drivers of all the cryptos we're analyzing on a daily basis, we have no idea what a good portion of the cryptos we're buying do. If it were any other way, we would no longer be objective technicians following the money flow.

In most cases, we only begin diving into what they all do after we put on the trade, and it's mostly for fun.

Take Helium as an example.

If we know one fact about markets, it's that they trend.

Markets trend; it's why technical analysis works.

Unlike what the university professors will argue, returns are not normally distributed.

It doesn’t matter if you’re a technical analyst, a fundamental analyst, an economist, or whether you look at the moon and the stars to make your buy/sell decisions. You can't argue with the fact that stock prices trend.

Over the last few weeks, we've been in the camp that Bitcoin and most other primary crypto assets will resolve higher into the remainder of the year.

The macro accumulation pointing to a bull run over longer time frames remains intact. But things have certainly been messy in recent weeks, with Bitcoin losing a key level of interest this weekend.

The thesis was that if Bitcoin was below 58,000, the downside risks become elevated for long positions, and elevated cash levels are prudent.

Bitcoin continues to flirt with this level, and the price action in most cryptos looks messy in the near term.

This is the video recording of our November 19, 2021, All Star Charts Crypto Weekly Strategy Session.

Over the last few days, we've made our thoughts pretty clear regarding the broader crypto market over long and short time horizons.

So let's have a quick summary:

There's been some downside volatility over the last few days.

When the market is indiscriminately selling off, we're looking for the small patches of green -- the names that are bucking the trend and resisting the selling pressure or even moving higher.

When the red of the market turns green, the green has a tendency to turn even greener.

It's relative strength at its best.

So given the current backdrop of this recent near-term volatility, let's pose the same question.

Where's the leadership?

There's been some notable volatility over the last 24 hours, with Bitcoin and Ethereum losing 8% and 10% respectively over this period.

Throughout this recent selling, over $840 million worth of positions have been liquidated.

We want to emphasize that Bitcoin is still in its sideways range, and we haven't seen a decisive breakdown. As we outlined in yesterday's note, looking out longer timeframes, this merely seems like a springboard to further upside.

If Bitcoin is above 58,000, we need to continue giving the bulls the benefit of the doubt.

If on the other hand Bitcoin loses these lows, then a more defensive approach is likely better.

For those with longer timeframes, a potential retest of 53,000 would provide an excellent level to add to long-term spot positions, if we even get there (not the bet we're making).

Over the last few weeks, we've been making the case that Bitcoin is likely to resolve to the upside and head toward our first target of 85,000.

In a note we published last Monday, we outlined a variety of developments taking place that's been supporting our macro bullish thesis. Since then, Bitcoin has continued to consolidate following its run-up after achieving all-time highs, and we haven't seen any dramatic price action in either direction.

So, in today's post, we'll be revisiting some of the data points we're heavily weighing towards our approach in the coming weeks.

Price Stability at a Local Maximum

In recent weeks, we've been discussing the compression of volatility in a lot of crypto assets, primarily Bitcoin.

This is the video recording of our November 12, 2021, All Star Charts Crypto Weekly Strategy Session.

Yesterday, there was plenty of action.

In the morning, the uptick in the CPI pushed Bitcoin immediately higher.

Throughout this short period, open interest spiked higher as longs jumped into late positions. This combined with FTX going offline contributed to a perfect storm for a minor shakeout of over-leveraged longs.

Despite this choppy action yesterday, this doesn't sway our bullish thesis.

We've made our thoughts clear that if Bitcoin is above 65,000, and the signs of on-chain buying pressure remain intact, upward volatility expansion through price discovery toward 85,000 remains the most probable outcome.

The beneficiaries of such a move would be widespread - down the cap scale of altcoins, and even in the individual stocks that are making crypto an increasing part of their operations.

So let's revisit how we're approaching the stocks in the crypto space, and identify the levels we're watching to manage risk and to take profits along the way.