Are you looking to get onto the property ladder but struggling to afford the astronomical prices, why not find yourself a bargain and look for one which is haunted. Once you’ve bought your ghost-ridden house, commuting will be your next hurdle, watch out for slugs, they’ve been known to cause a few issues. And when you’re feeling peckish, why not pop to your local fast food chain for a salad, it’ll help you lose weight and save them money.
Another day, another yearly-high. Bitcoin just surpassed $11.4k around noon BST, having climbed a modest 6% over the past 24 volatile hours. Ah, to remember that back in October bitcoin barely moved! Nevertheless, its price is at a very fragile spot — one which BTC failed to overcome three times in 2018. So, in today’s newsletter, we’ll try to understand the possible scenarios ahead.
Zooming out, bitcoin is now 240% — or 3.4x — up since the yearly low of $3.3k back in February. And it has been climbing the charts for seven days in a row — the first time it has happened in 2019. Will the next few hours change that? That’s the first scenario at hand, and many are prudently calling for it. But the second one implies the true pump is yet to come, and there’s plenty of alts’ money to fuel it.
How could that second scenario play out? Despite the rational need for a pullback, the truth is that bitcoin is very close to uncharted territory. As David Puell shows, there’s a major resistance at $13.8k — around 20% from where we stand. But, after that, “all bets are off”. That was the point where past pumps really started. Moreover, the China inflows narrative we introduced yesterday keeps growing, both from regular app users and even major banks!
With Bakkt starting its testing on the 22nd of July, could we see a similar run to $20k — like the one seen in anticipation of CME’s future launch in December 2017? But this time with a different ending? As Cantering Clark argues, we can’t help but look at bitcoin’s chart and cry correction. But with improved fundamentals, a clear speculative asset narrative — as opposed to a cryptocurrency one — and with the fear price won’t retrace, who wants to sell?
▪ Binance surveyed over 100 of their VIP and institutional customers. Only 10% believe bitcoin’s price dominance over alts will be under 40% at the end of 2019.
▪ Charlie Shrem’s new Untold Stories podcast saw Taylor Monahan explain the evolution of MyEtherWallet into MyCrypto, a popular blockchain interface.
▪ Alex Krüger opened up his trading game and explains how to sell a top without getting rekt, how to place stops, and why the CME weekend gap gets filled.
▪ Decrypt’s Ben Munster interviewed Will Harbone from Ethfinex, Bitfinex’s DEX, to understand the relationship between Tether and bitcoin’s price.
▪ The TIE’s team analysed sentiment data and matched it with bitcoin’s price. Guess what? News about Facebook’s Libra have likely contributed to this pump.
“1. Game-theoretically, Bitcoin needs exuberant tops to signal the network to the masses, and it needs the bottoms to increase the number of strong market participants pushing the next cycle forward.
Traders should thank hodlers for supply restriction and the bottoms.
Hodlers should thank traders for liquidity and the tops.”
