Spooky Action in Crypto Markets

Last week, we worded our letter in a rather dramatic fashion, arguing that Bitcoin was on the edge of the abyss.

Since then, we've seen equity markets make a decisive move to the lows, while currency markets have acted in spectacular fashion. The US dollar continues to strengthen, while the UK pound sterling printed at new all-time lows.

As far as risk markets are concerned, this is a rather treacherous tape, and caution is still advised over more substantial time frames.

Much of our job as technical analysts is to discover pieces that don't conform to the regular puzzle.

What's caught us by surprise is the resiliency of crypto markets in the face of this risk-off action. Bitcoin continues to defend its critical 18,000 support level even in the face of equity markets selling off.

Furthermore, our breadth metrics suggest that altcoins have been holding up better than individual equities.

Let's dive into this week's letter.