I'm seeing a number of positive developments that supports an intermediate-term bullish bias. The current weight of the evidence points to further upside in the coming months.
Bitcoin continues to move higher following its retest of the 60,000 support level. The short-term trends in crypto markets are higher, which aligns with equity markets making new highs.
There's no denying that the trends in crypto have been rather messy over the last few months. Bitcoin and most crypto assets have been consolidating their gains and many cryptocurrencies are either rangebound or trending lower in short timeframes.
I've been writing in recent weeks that the best course of action is to adopt a patient approach and let the tape setup more constructively.
Over the last few days, we've moved a step in the right direction. But equally, the high timeframe trends are still choppy especially with Bitcoin still testing its former 2021 highs. While this recent failed breakdown in Bitcoin could be indicative of the ending stages of this consolidation, we are also in the context of a longer-term sideways chop.
When it comes to Bitcoin, I'd like to see a breakout above 73,000 to confirm a new leg higher. But down the cap-scale, we could be seeing opportunities begin to emerge.
The big takeaway is that I'm not seeing a big reason to do anything from a trading standpoint.
I want to see an expansion in new highs as well as more sustained dollar weakness to have more conviction in adding to my crypto exposure. For now, I think remaining patient and allowing the market setup is the most prudent course of action in the short term.