Is This Disbelieth?

Market Report: 22nd Feb. 2019— Subscribe to our newsletter.

Join us on telegram

CRYPTO NOTE

The daily view from our desk

Some good news! A bee, which was thought to be extinct, has been spotted for the first time in 38 years. And to bring you back to reality, here’s a video of a pilot asleep at the controls. This pilot, on the other hand, was most definitely not asleep, as he drew crude patterns in the sky because he was bored. Whilst, in Dartmoor zoo, you can now compete in a tug of war against a lion? What a great idea!

IS THIS A FALLING KNIFE?

CAUGHT IN A SIDEWAYS SLIDE, NO ESCAPE FROM BEAREALITY

As cryptomarkets undergo a second calm day this week — with average returns of 0.2% over the past 24 hours — let’s look at what can happen over the weekend. The first thing you should worry about is resisting the urge to buy an alt after hyped news comes out. Take the example of Komodo’s KMC, which pumped and dumped 13% and 15% after the blockchain joined AWS’s Partner Network.

Then, as Mr. Chief visualises, keep an eye on this week’s diagonal support for bitcoin, which turned resistance yesterday. Many are expecting BTC to fall, which would likely drag the market down. But, if the opposite happens you can make your own guesses about the bulls’ reaction by looking at Quijote’s zoomed out chart — showing how the original cryptoasset fared since last December.

IS THIS JUST DISBELIETH?

OPEN YOUR EYES, LOOK UP TO THE CYCLES AND SEE

Additionally. Ramen just suggested “something big is about to happen” as the bitcoin volume in CME — currently the most significant traditional futures exchange for cryptoassets — reached an all-time high, influenced by the fact “someone placed 80,000 BTC worth of long contracts” yesterday. This would go along with the meme many are sharing about this pump being a “sucker’s rally”.

As always with any rally that occurs during a bear market, the question is who are the suckers. And that depends on whether or not the rally is just a dead cat bounce — like the many we had in 2018, which can still be traded but that doesn’t signify a shift in market structure — or whether it is the rally that confirms the bottom, while many stand on the sidelines in disbelief.

Impossible to tell by now. But don’t get too hyped. As Bitcoin Jack remind, “there’s a fine line between (the) disbelief and depression” phases of market cycles. If you are not familiar with the popular chart depicting the psychology of such cycles, check Salsa’s visualisation, which also notes the fact bitcoin hasn’t seen that traditionally long depression phase. What about 2018, eh?

WHAT YOU CAN’T MISS TODAY

DON’T LEAVE FOR THE WEEKEND WHAT YOU SHOULD READ TODAY

▪ Lawrence Lundy-Bryan, a partner at Outlier Ventures, explains why “there is no such thing as decentralised governance” because humans can’t get rid of politics.

▪ Dan Schulman, CEO at PayPal, argues “P2P payments are exploding”, and this “multi-hundred-billion-dollar marketplace” won’t “definitely be a winner take all”.

▪ Jack Dorsey, CEO everywhere, pumped Tippin, the “Chrome extension that places a tipping button in tweets”. Why? Because it uses Bitcoin’s Lightning Network!

▪ Cole Garner, a market cyclist, analysed last week’s crypto trading volume — the highest in a year — and compared it with all 2018’s bull traps. Must read!

▪ Joe McCann, a market mercenary, wrote a must-read threat on why “trading in crypto is radically different than trading in any other asset class”. More interesting?

▪ Jesse Lund, a VP for blockchain and digital currencies at IBM, shared in an interview his bullish view for bitcoin: “I see Bitcoin at a million dollars someday”

QUOTE OF THE DAY

REMEMBER THIS QUOTE ONE YEAR FROM NOW

“You’re going to learn a million things, then you need to forget them all and focus on one.”

By @SunriseTrader