Technical Analysis

A Closer Look at the Crypto Market Capitalization

After looking at major stock market indices and the correlation between the Dow and Bitcoin bull cycles in my last Deepdive Wednesday Trade Letter (#202), this week I will have a look at the structures of crypto market capitalization charts.

Crypto Market Strength Continues but Don't Get Carried Away

Bitcoin has been holding up fairly strongly so far as it has been consolidating in an ascending price channel. While an eventual retest of the previous HTF range high ($31.5k) remains likely, for now focus should be on the daily 8EMA. Price has been retesting and finding support on the 8EMA during times of strength, and unless that relationship changes, we should lean towards more upside. $38.5k - 40k - 43k remain a likely target if we get another impulsive leg up. On the downside $31.5k - 33k looks like a good place to scale in or add to your long exposure if you are bullish based on the chart structure (which I am). Chart structure-wise there is no plausible scenario in which we dip to <$20k or even start closing daily candles <$30k and then rip up from there shortly after.

Look on the bright side..

Before I am going into the the technical part of the tradeletter, I would like to reflect on some facts. Today it is the 8th of November 2023. In this period of last year we had arguably the biggest black swan event in the crypto market in the name of the FTX debacle. Price dropped hard and in the matter of a couple of days we saw a decrease in value of around 30% on BTC and we hit the a low of $15.5K. A lot of people thought that it was over for crypto. Now a year later we are trading at prices around $35K which is more than a 100% gain for BTC and we should be really happy with that! Just realizing this should give you the trust that crypto is here to stay. In what form? I am not sure to be honest, but I do think that we will see implementation somewhere in the financial market.

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Bitcoin Hits $38,000 and Altcoins Are Up, Bull Market is here!

Bitcoin is currently continuing the momentum towards $38,000 as the hype surrounding the spot ETF has increased, and now Ethereum is also picking up pace as a potential spot ETF for Ethereum is going to be launched. What's next? Where to find the next trade on those altcoins?

Still Inching Towards the Common Goal

Various cryptocurrencies continued to experience a notable surge in trading volume. The recent upswing in Bitcoin was supported by speculation that a Bitcoin spot ETF might be introduced before November 17th. Concurrently, Ethereum (ETH) saw an increase following reports of BlackRock submitting an application to the SEC for an Ethereum spot ETF. Two months ago, the overall cryptocurrency market capitalization was at $1 trillion; presently, it has risen to approx $1.42 trillion.

Core CPI hits two-year low, but how do the markets react?

In October, inflation showed no change compared to the previous month, signaling a potentially positive development in the U.S. economy. This stability in prices offers a hopeful indication that the persistent high prices might be loosening their grip, potentially allowing the Federal Reserve to reconsider raising interest rates.

Key Levels Holding Steady

BTC Price has been consolidating mostly above the 0.382 fib retracement level and mostly holds above the 8EMA coupled with an ascending triangle type of chart structure. RSI is still above 60, which in continued uptrends points to additional strength.

The end of an era

We had a lot of news going on in the world of crypto yesterday. However one thing was of course very significant. CZ is resigning as CEO from Binance. According to The Wall Street Journal, Binance will also plead guilty to a criminal charge and agree to pay a total fine of $4.3 billion. This includes amounts from civil complaints by regulators. The deal would bring an end to long-standing investigations into Binance. Zhao founded the company in 2017, and the exchange quickly grew to become one of the world's largest cryptocurrency exchanges. I will not go into the things that they possibly did wrong, but I would like to say that the crypto community needs to thank him a lot, they would not have been here without him, so thank you and we will see what happens with Binance in the future! For now, we are seeing some corrections a cross the board in crypto markets as effect of the news that came out about CZ, so what levels should we be looking out for now? Let's discuss that in the tradeletter from today!

Altcoins Are Ready for another Round of Upwards Momentum?

The past week has been a massive week for crypto, as CZ has announced to resign as the CEO of Binance, while in the meantime a SEC Commissioner announced that the U.S. is ready for a spot Bitcoin ETF. The markets have been showing a correction as some altcoins have been falling by 10-30%, but they seem ready for another upwards move. In this update I'll talk about some altcoins and provide an overall outlook on the altcoin markets.

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