The dollar bounced back up. Equities across the board fell from record highs: The S&P is down almost 1%, the Nasdaq almost 2%, and the Dow is inching down as well. Oil is closing the session down 7.5%, from $65 to now $60.
In crypto, we’re observing a slight pullback but, looking at the various charts, nothing as dramatic as in traditional markets. BTC edged down about 2%, currently holding on at around $58,000. ETH is currently stagnating a few dollars below $1,800. ADA, which yesterday led the charge, fell almost 10%.
It is interesting to see that the BTC Dominance index is not swinging one way or the other, decidedly staying below 62. The question now is: are we forming a bottom for another move up (BTC gains while alts fall), or are we setting up for strong fall (BTC underperforms relative to alts)? Only time will tell.
Fundamentals are good for the crypto space as a whole, though.
The Glassnode chart following long-term MRV (a measure of transactions older than 155 days) shows that even at these elevated prices we’re nowhere near the levels seen at previous cyclical tops. There is a long way to go, and the mistake most investors will make, in my opinion, is selling too soon.
Let’s not get too comfortable, though. Along the way, we might see massive bouts of volatility. At this very moment, the BTC options open interest is rising towards $15 billion… that’s a lot of leverage that could go beautifully right or horribly wrong. I’ll be grabbing my popcorn and watching.
Written by: Justin d'Anethan, Sales Manager
BTC rose another 3% yesterday, currently at $44,600 and tantalizingly close to the 45K resistance/support.
Bitcoin has enjoyed a positive trading session today, with prices up 7% post this morning's news that China had taken some small steps to avoid an immediate default from Evergrande. The addition of liquidity to the banking system may just be a shock absorber for next week's action, or it could be the first shot in a sustained program to assist with Evegrande's woes.