Strength. You can feel it all around. And of course, macro markets and crypto markets are interlinked, at least to a certain extent. You can see large players -and smaller ones actually- be buyers of risk, capital is flowing into non-cash, non-bonds assets, and into equity and definitely into crypto.
A lot of people were readying themselves for a 2018-like event and, for the longest time, I said this cycle wouldn't be a repeat of the previous one, there's just too much money, too many institutions and large investors, too much infrastructure, etc.
BTC's all-time highs are at $64,800 -that’s from April of this year. Over the weekend, we touched upon almost 63,000. Right now, morning Asia time, we're holding above $61,000. .
Now, we might be very wrong and end up never being able to break the 65K mark, for example. But the path to where we’re at now has been paved by strong green candle, there’s a boldness to how we approach this critical juncture. With at least one ETF approved by the SEC and maybe more to come, it seems reasonable to believe at least a percentage of the large institutions not yet exposed to BTC will take partial exposure… and that’s already massive. And retail investors will follow of course.
On a short-term basis, though, a CryptoQuant chart shows us the rather high leverage ratio. This is something to be aware of. In crypto, expecting the unexpected should be the norm, especially when trades become very one sided. The temptation to push us down and force liquidate a lot of leveraged longs is there and could happen, before a real push higher happens.
Another chart, from Glassnode this time, shows the plateau-ing (if that’s a word) of exchange balances. Typically, with rising prices, you see holders of coins deposit some coins to exchanges -thus increasing the balance on exchange- as they’re thinking of taking profit. This isn’t happening this time, it shows that a majority of holders are just keeping their coins, not looking to sell even at those elevated levels. This is extremely supportive as it minimises the selling pressure or reserve risk. It’s worth noting that 99.02% of all $BTC supply is now in profit.
By the way, I barely mentioned alts. Actually they’re doing ok in dollar terms but you can definitely see the BTC dominance rising above 46 again. I still see this as an opportunity for cheap buys of alts relative to BTC, to then be cycled back in. For now, though, the focus is on King Coin, leading us higher, once things settle down, the market can focus on more speculative but potentially higher returns play. Did you see how WOO token pumped yesterday?
I reply to all comments on my YouTube channel; if you have any questions, feel free to head over there and shoot??
Follow Me On YouTube On: https://www.youtube.com/c/JustindAnethan
Follow Me On Twitter On: https://twitter.com/justindanethan
Sign up on EQONEX via: https://tinyurl.com/y7yyj4xs
