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.
We've built a proprietary scan that notifies us whenever a cryptocurrency exceeds a certain market-cap threshold for the first time. When there's an up and coming cryptocurrency, we're the first one to know about it.
This scan flags breakthrough cryptocurrencies, allowing us to capitalize on lucrative opportunities before they become mainstream.
Here's this week's crypto roundup. It's an opportunity for us to take a step back, set aside the distractions, and delve into the key charts shaping the crypto complex.
This week, I walked through Bitcoin's AVWAPs, the crypto new highs list, moving average analysis, Bitcoin derivatives, and the US dollar.
Every week, we create a Power Rankings table that lists the market-cap rank of the top 20 cryptocurrencies. This allows us to see the winners and losers as they climb the market-cap ladder.
The Bitcoin halving has come and gone, and my perspective on it remains unchanged: it was a non-event. Contrary to expectations based on previous cycles, this halving had little impact on Bitcoin's trajectory, which appears more influenced by broader market liquidity conditions. While some may argue for its significance, any effect on the market seems to stem mainly from sentiment rather than fundamental changes in supply or demand.
One sentiment dynamic worth noting is the classic pattern of "buying the rumor, selling the news." However, in the case of the halving, we've witnessed a reversal of this trend. Investors preemptively adjusted their positions leading up to the event, particularly in Bitcoin mining stocks, anticipating the halving's impact on revenues. Surprisingly, instead of selling off after the halving, there has been a notable increase in buying activity, reflecting a shift in sentiment.
This behavior aligns with a fundamental aspect of human psychology: the aversion to uncertainty. Similarly, investors prefer to act when outcomes seem more predictable, hence the recent surge in buying activity post-halving.
Crypto markets are undergoing a period of consolidation. Following last week's selloff, buying during weekend hours helped to push Bitcoin and Ethereum higher.
Every week, we create a Power Rankings table that lists the market-cap rank of the top 20 cryptocurrencies. This allows us to see the winners and losers as they climb the market-cap ladder.
We've built a proprietary scan that notifies us whenever a cryptocurrency exceeds a certain market-cap threshold for the first time. When there's an up and coming cryptocurrency, we're the first one to know about it.
This scan flags breakthrough cryptocurrencies, allowing us to capitalize on lucrative opportunities before they become mainstream.
Here's this week's crypto roundup. It's an opportunity for us to take a step back, set aside the distractions, and delve into the key charts shaping the crypto complex.
This week, I walked through the good, the bad, and the ugly of this current environment.
Cryptocurrency markets experienced a downturn this weekend due to geopolitical tension.
I believe there's no advantage in reacting to such headlines; if anything, they provoke emotional decision-making and obscure our capacity to rely on market trends. Remember, it's the flow of money that generates profit, not rumors and narratives.
Undoubtedly, geopolitical tensions have affected cryptocurrency markets, reinforcing my view of a "chopsolidation." Nevertheless, I'm also positioning myself for a short-term rally.