120
Ethereum
Market Price: $2,165.38
Market Rank: #2
Bitcoin
Market Price: $35,512.10
Market Rank: #2
In my last article I discussed that if Bitcoin were to break the $30,000 level it would need a miracle to be saved. That miracle occured! Bitcoin dropped to $28,000 level and instantly climbed back up to a stable level. Bitcoin even at its current price of $35,512,10 is not in the clear. It is sitting much prettier than it was, but there is still a strong chance that the stock market drops out and drags Bitcoin and the rest of the crypto market with it. However, Bitcoin sitting at $35,000 is much better than Bitcoin sitting at $30,000. What is interesting is the inflows and outflows of Ethereum when compared to Bitcoin over the last week and that is what I will be discussing in this article.
"This week most of the negative sentiment was focussed on Ethereum where net outflows totalled $50 million [US dollars], the largest on record. These outflows represent 5% of the $943 million inflows year-to-date. Bitcoin saw minor outflows totalling $1.3 million, its seventh consecutive week of outflows. Flows were varied across providers with some seeing substantive outflows while others saw inflows, suggesting mixed sentiment for Bitcoin amongst investors" - James Buttefill at CoinShares.
So, with the outflows of Ethereum decreasing but online sentiment of the crypto market increasing would lead me to believe that the crypto market has hit a bottom and a bullish reversal will kick in. Yet, what keeps grounded is that fact that Ethereum is up 16% in the past week and Bitcoin is up 12% but WHY?
I will tell you why; the great fake. I like to call this scenario the D Wade pump fake or for some you Knicks and Blazer fans the Carmelo pump fake. This is what happens when Carmelo Anthony gets in the post against a smaller inexperienced player, he pump fakes, once, then again, and the next thing you know he has them and the ball is threw the net. This is the same for the crypto market, we are in a pump fake scenario. All the inexperienced players are falling for the fake, the market is suddenly coming back they think. Melo is on the ropes, a breathe, and the ball drops threw the net, the market tanks. Now, I am not saying this with a 100% certainty but we are most definitely in a pump fake scenario in which at any time the market can drop out.
- Stolen from @galaxyBTC on Twitter
What many are predicting is that Bitcoin, along with the rest of the crypto market will leap from this point. I am not saying that is not a possible outcome but it is not a guaranteed outcome like so many believe. The reason why in February Bitcoin, along with the rest of the crypto market, jumped was because the stock market made huge gains. The world was opening back up, unemployment was continuing to go down, the world was looking beautiful again, and there was hope in the air. Today is much different, there is a new covid varant spreading across the globe, people are losing their homes, their is a worker shortage, and complenancy has taken shape across the globe. Let us also not forget the possible, and very real and concerning, possibility of the stock market dropping out, correcting around 15%, which would lead to a correction in Bitcoin of about 25% - 40%.
In conclusion, we are not in the clear, nowhere even close. Currently, we have our hand up and praying that Carmelo misses his shoot and by a miracle we grab the rebound and convert. There is still time left on the clock, the game is not out of reach. Yet one more dagger, in terms of another drop of Bitcoin, could end the run we have had so far pushing back the schedule of Bitcoin a couple months to a year.
Good luck, and happy trading!
- Hypothetical
