Welcome back to Kryptolytix, giving you a fresh take on crypto analytics. This is your crypto recap, where I cover the latest happenings in the crypto space. Let’s jump right in!
Bitcoin Cycle Chart Analysis
Starting with the Bitcoin cycle chart, the Heikin Ashi super trend has given us another potential false sell signal. This isn’t entirely surprising, as similar signals have occurred in the past. However, I chose to ignore this signal due to the overwhelming amount of FUD (fear, uncertainty, and doubt) circulating at the time. Just as I emphasized in previous videos, around the 54-55k mark, it was more advantageous to buy rather than sell.
“Bitcoin went up almost 30% since I called the bottom. We are pulling back a little now but we’re back above the bull market support band.”
I firmly believe we are still on track with the Elliott Wave Theory’s macro wave, maintaining our path towards 80k, 90k, and potentially 100k. The stochastic RSI is back to the mid-level, which is a positive indicator.
Bitcoin Miner Capitulation
The hash ribbons index, which had been in the red zone for an extended period, has finally turned green, signaling the end of miner capitulation. This shift indicates that miners have finished upgrading their rigs and are back online. Post-halving miner capitulation typically reduces miners’ earnings, but it appears we have moved past this phase.
“As of Tuesday last week, we are back, and the miners are back.”
Resistance at 70k
Currently, Bitcoin faces significant resistance at the 70k level. Despite briefly breaking above this mark, the 70k level has proven difficult to sustain. The pivot surge, an indicator I developed, showed a market shift, and we observed strong support around the 57k level.
Liquidity Zones and Leverage
I expressed concerns about the open interest levels, which were alarmingly high as Bitcoin’s price surged. This surge created more liquidity for market makers to exploit. The last time open interest was this high was at Bitcoin’s all-time high, around 7 billion. This situation was a red flag for me, indicating potential market manipulation.
“I was quite concerned about the liquidity building below the price on BTC.”
Bitcoin Bullish Structure and Supports
Despite these fluctuations, Bitcoin’s bullish structure remains intact. As long as we hold above 60k, the market is still in a bullish phase. We have multiple support levels from key moving averages, providing a safety net if a corrective move occurs.
Bitcoin Elliott Waves Prediction
Examining the Elliott Wave count, we can trace a clear impulsive move off key support levels, suggesting that the recent bottom was significant. As long as we stay above 60k, any pullback is merely a consolidation and a correction within a larger bullish trend.
“This to me indicates we put in an impulsive move, broke past key resistance, which tells me that $53.5k was highly likely to be the bottom.”
Ethereum and Grayscale Trust Unwind
Shifting focus to Ethereum, Grayscale’s strategy to mitigate the large-scale unwinds of their Ethereum trust involved setting up a mini Ethereum trust with competitive fees. This move aims to attract investors and prevent a repeat of the outflows seen with their Bitcoin trust.
“Grayscale transferred approximately 1 billion worth of Ethereum to Coinbase, avoiding a capital gains tax event for investors.”
Ethereum Chart Update
Ethereum experienced a massive speculative pump off a support level, which was quickly sold off. Despite the messy price action, Ethereum’s dominance in the market remains strong. The Ichimoku trend meter indicates a bearish trend, but this is typical in a range-bound market.
Global Implications and US Election Narratives
On a broader scale, the US election year brings potential impacts on the global economy and crypto markets. The Republican party’s hawkish stance towards China and the Democratic party’s focus on Russia create varying regulatory environments. This dynamic could influence crypto adoption and market behavior significantly.
“A rise of the multi-polar world and the global South, with Russia and China becoming more bullish towards crypto, is worth considering.”
Conclusion
Overall, the current crypto market presents both challenges and opportunities. With Bitcoin’s bullish structure intact and Ethereum navigating its trust unwind, the landscape remains dynamic. Keep an eye on key support levels and liquidity zones as we move forward.
That’s it for today’s crypto recap. If you found this update helpful, please like the video and subscribe to the channel for more content like this. Follow me on X for real-time updates, and leave a comment below with your thoughts on today’s analysis. Stay safe out there, and I’ll see you in the next video.
Kryptolytix, signing out.
