Crypto has been pounded from pillar to post. Promises to hike rates by the Federal Reserve, an incredibly uncertain regulatory environment, and much negativity throughout the mainstream media. However, there are definitely signs that perhaps Bitcoin and the altcoins are just beginning to turn the corner.
Today dawned green for the crypto markets. Bitcoin is once again nudging against the downwards trendline that has held ever since the $69,000 top on 10 November last year. Should the trendline be pierced and held above, then the chances of a trend reversal become ever greater.
Ethereum peaked on exactly the same day as bitcoin and has also followed the same downwards trajectory. Where BTC lost around 52%, ETH went down around 55%, although now they are perhaps on the way back up, ETH has gained 24%, quite a bit in excess of BTC’s current 13%.
This appears to be the changing story now. Bitcoin always previously led the charge followed by the alts. Now however, it’s ETH and the major alts that are generally making the bigger moves. This story is evident in BTC domination, which is once again heading down to the major 40% support.
Higher time frames are looking pretty good all round. Bitcoin, Ethereum, and all the layer 1 blockchains are bottoming out on the weekly and monthly stochastic RSI, which indicates that they may soon be getting impetus to the upside once the stochastic starts rising from the bottom.
It could be easily argued that eventually a crypto rise really had to happen. The dollar probably isn’t a reliable indicator of actual fundamental value these days, becoming more worthless as it is printed to oblivion, but investors are still seeking its haven of safety, given that it’s still perceived as the most handsome horse in the fiat knackers yard.
However, this will change as more and more investors come to the realisation that the dollar, as well as all the other fiat currencies, have had their day, and are losing their purchasing power fast through debasement.
It may be that crypto needs to go down further as it is still seen as the riskier asset in many portfolios, but the time will come when sound money has its day again. The crypto dawn is upon us.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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