Today, we experienced muted volumes and trading during MLK day (equities, bonds, and OTC markets are closed in the US).
Crypto markets were open but moves were also muted, albeit for a different reason. BTC prices seem to be narrowing into a—bullish?—pennant with a midline at about $36,000.
Since the all-time high, peaks have been gradually lower, but from the $30,500, lows have been gradually higher. Naturally, this type of formation leads to an explosive move once prices break out: The question is whether they will break out upwards… or downwards.
During this BTC stagnation, one could have expected alt traders to rejoice, as it would give an opportunity for smaller cap coins to play catch-up. That did not happen during the last session. Most coins are flat or, in some cases, underperforming.
Amidst this unclear picture, what am I looking at? Two things:
1) the BTC Dominance Index, as a gauge for how alts are performing. We briefly crossed a massive resistance two weeks ago, at 72, and then closed down, now safely at 67.
2) the dollar index, simply because I remain convinced that the performance of BTC, on the up or downside, is strongly impacted by investor’s perception of the dollar (the world’s main currency). Should we see a massive strengthening of the dollar, I believe we will see a retracement in BTC.
In the meantime, interest in BTC isn’t dying. Grayscale saw their largest single day asset raise, with more than $700 million pouring into their funds. As the demand for BTC grows, one has to ask if the supply will cope.
Sign up on EQUOS via: https://tinyurl.com/ybdvmu3z
Sign up on YouTube via: https://www.youtube.com/c/JustindAnethan
