With the next Bitcoin halving event less than a year away, we are seeing a sudden explosion in excitement for all things crypto. A major trigger event was the prospect of various spot Bitcoin exchange-traded fund (ETF) filings by several financial giants such as BlackRock, Fidelity, ARK Invest, Valkyrie, and others.
I woke up early this morning and as I opened my bedroom window I noticed a white unicorn in my yard crapping chocolate truffles. It looked up, gave me a big smile, and then rode off into the sky on a glittering rainbow. Not a bad way to start the day!
It’s been a tumultuous month with many good as well as bad surprises for the crypto sector. Bitcoin now finds itself back at the $30k mark where the recent rally fizzled out back in early April.
The tape has been boring AF over the past few days which is an excellent time to teach you guys a thing or two about price action. And let me start out by ripping off the band-aid and telling you straight forward that relying solely on indicators – ANY indicator – is HUGE mistake. One that may in fact cost you your trading account.
Take any modern retail trading platform and the ratio between views on the chart tab versus the on the trading tab settles in at somewhere around 7:1. In case you wonder – YES, I get off on exotic statistics, because that’s just how I roll.
It seems that within a single week we’ve flipped from deep skepticism of all things crypto directly to good old fashioned irrational exuberance driven by what seems to be a viral outbreak of FOMO (fear of missing out).
Okay it’s not that I can read minds, walk on water, predict the future, or undo bras with the power of my mind. My only claim to fame is that I am damn bloody good at reading the tape.
Last Friday morning I promised you a shortsqueeze and we didn’t have to wait long for the market to deliver. What was supposed to be a mere 50 SPX handle week (based on the weekly expected move) turned into a 110 handle rocket launch.
If you plan on surviving for more than a year as a trader then there is one enduring quote by Winston Churchill that you should ingrain into your cerebral cortex and remind yourself of every single day:
The concerted U.S. crypto smack down seems to be picking up steam. Which is always a great time to start loading up on some coin, assuming of course you’ve got the brass needed to fade the blood in the water and take a dive.