$BTC Cracks $50,000!!!

IN THIS ISSUE

HIGHLIGHTS

  • $BTC cracks 50k

  • $ETH volume declines for the 5th week straight

  • Chaos PRZ tags come in left and right

  • $ETHBTC slides into the #PumpChaserZone

  • Total #Altcoin marketcap closes highest weekly candle ever!

Bitcoin opened another week with a push to new all-time highs, cracking the huge psychological barrier at $50,000! The build-up of anticipation around this level has shown itself on the charts with repeated sweeps and sharp rejections on lower timeframes.

There appears to be no shortage of market participants who are looking to cash in at these levels and perhaps looking to “call tops” and put on a short position. Despite the continued growth of the strong fundamental narrative that has taken the market by storm in 2021.

Microstrategy announced a plan to borrow $600m to buy more this morning. Michael Saylor continues to lead the charge through the bull, putting his money where his mouth is, adding another significant buy to his companies sizeable Bitcoin position.

It’s hard to imagine a bearish scenario at this time, given everything we’re seeing on the institutional side of things. The current upwards consolidation in price has formed a rising wedge over the last week. A pattern we’ve seen that can break both ways.

 

BTC/USD WEEKLY

HIGHLIGHTS

  • $BTCUSD just about smacked our HTF Chaos PRZ on the nose this morning after successfully navigating the PumpChaserZone in January. Volume fell off slightly over the past few weeks. If $BTC trades above $50,000 this week, a blast to new highs in volume should be expected!

 

BTC DOMINANCE WEEKLY

HIGHLIGHTS

  • $BTC dominance stalled its downtrend at the Wyckoff check level from the summer lows. These levels marked “the top” of that #altcoin rally from a dominance perspective and, not surprisingly, are holding up for now.

  • It appears that some traders are looking to hop back on the Bitcoin train, paying themselves after an explosive altcoin rally!

 

ETH/USD WEEKLY

HIGHLIGHTS

  • $ETHUSD tagged a pair of Chaos PRZ’s this week on declining volume. As their name would suggest, these TA fib targets can often be found in areas where price stalls and in some cases, reverses.

  • For over a month now, the volume on spot Ethereum has gone down. This speaks to a lack of interest in $ETH at these price levels that some analysts suggest COULD be an early indicator that we’ve found a local top and need to cool off.

 

ETH/BTC WEEKLY

HIGHLIGHTS

  • $ETHBTC is parked in the Pump Chaser Zone weeks after breaking out on high volume. This consolidation is nothing to be concerned with, given the lengthy consolidations we’ve seen previously on this pair. Bulls seeking a stink bid entry should keep an eye on the 20-week SMA.

 

ALTCOIN PERP

HIGHLIGHTS

  • The Altcoin perp also came into some Chaos PRZ levels after printing its largest one-week candle ever! Similar to the DeFi perp, #altcoins are at a pivotal level that boils down to a near coin flip between continued price discovery and consolidation.

  • Regardless of what comes next, most pro traders are taking at least partial profits, at these levels. Into Bitcoin? Into Ethereum? Stables? That’s a personal choice of course. This writer, @RandomTask555, is taking partial profits into all of the above!

 

DEFI PERP WEEKLY

HIGHLIGHTS

  • There is no reason to think that DeFi won’t see continued, explosive growth this cycle, the only question is whether there will be a moment of consolidation before price discovery resumes.

  • The DeFi perp showed its first sign of exhaustion this week as it made new highs and tagged the Chaos PRZ on slightly lower volume.

Altcoin Total Marketcap

HIGHLIGHTS

  • The Total Altcoin marketcap closed above a historic level this week! Eclipsing the previous cycle ATH’s, printing a high of $613b before pulling back slightly this morning. We’ve enjoyed 7 straight green weeks since breaking out in the wake of the $BTC ATH. Incredible!

 

YFI/USD Weekly

HIGHLIGHTS

  • $YFI broke into price discovery last week and is navigating a bullish retest on the daily chart right now. We’ve included it in this weeks’ edition because of the vast implications this could have for the Yearn Ecosystem and all of DeFi.

 

 

With all the upside we’ve enjoyed in the early stages of Q1 2021, as traders and speculators, it’s a great time to start thinking about our long-term goals. If you haven’t already, do yourself a favor and take some time to write down what’s important to you. Why you’re here, what your long-term vision includes and what goals you can work towards through this cycle.

Having a plan in place for “paying yourself” will do wonders for your account and emotions as we continue to navigate, what many expect, could be the greatest bull market of our generation! In the coming weeks, we’ll explore a number of approaches that one could employ!

One of the recurring themes you’ll read about is one of making small, gradual movements. Much like a Dollar Cost Averaging system will outperform most traders while taking the stress out of making “big decisions” at any one moment.

A strategy of making small, partial decisions around paying oneself, can remove the immense pressure that we feel when experiencing the emotions that occur during market volatility.

Calling tops and bottoms is generally a sucker’s game. While one trader may get lucky and nail it, once or twice in their career. Most professional traders agree that averaging in and out of positions over time, yields the best results for long-term participants.

No one is suggesting that you cash out right now. The trend is our friend and it’s bullish! But everyone’s situation is different! Your personal risk profile, financial responsibilities, long-term goals, etc. make it impossible to establish a “one size fits all” plan.

One thing we ask ourselves this week is, have we paid ourselves yet? If not now, when? If you haven’t already, you should spend some time establishing the answer to this question so that when the time comes, you have a plan in place and can execute it effectively!

More to come on this subject in next week’s edition of Weekly Views from the Lab!

 

 

 

Disclaimer:

The following commentary is provided for informational purposes only and may not represent the views of Hxro Games Ltd. or its affiliates, and should not be viewed as legal, tax, investment, financial or other advice. Digital asset transactions are inherently risky, and you are fully and solely responsible for evaluating your purchasing decisions at your own risk. Past performance is not indicative of future results.

©2021 by Hxro Labs

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