30/08/2018/08:30CET
After a race upwards, cryptos are taking a breather going into the weekend.
It has been a good week in crypto so far.
#BTC has had a 6% run since monday moving from 6700 to 7100 usd. Most of that happened in just 2 days but as we have discussed here before the 6900 area was always going to have some resistance around it.
And at press time we are here again trading at 6977.
We have retraced a few percent but this is not to be taken as a bad sign per say.
We've had a nice run to breach 6900 convincingly and now go back to retest it. If it holds, we are on our way to making this into new support.
This is what the daily btc chart looks like...
Note the convergence of the 50 and 100 moving averages right at our 6900 level.
Also if we look back in time in the charts, we will see the 6900 level playing a key role in market structure.
What I am looking for right now is a hold here over the weekend. A consolidation in the 6900 7100 range over the weekend would be my best case.
Worst case is a breakdown to the mid to 6500-6300 There is support down there but it is choppy territory for bitcoin down there.
I still have stop loss orders hovering just below the 6k mark. A break to that level will certainly be raising the odds of a real sharp fall lower.
Not wanting to wake the sleeping dog, but it is end of August. Do we recall how the market looked and acted around this time last month. Ouch!
Off course there could be a spike upward as well into the mid to high 7k range over the weekend. This is unlikely and also carries some dangers as a correction from this level could overshoot damaging the 6900 support level.
Build a stable base at 6900 is the best thing we can see right now.
Alts
Alts are taking their cue from bitcoin today and retracing some of their irrational gains.
Substratum and Nano are both down double digits today.
Eos seems to holding up though with a 2% gain to stand at 6 usd even .
I am watching the Alts carefully and have often gotten the itch to post about them in more detail, but I fear that once I start to scratch that itch, it will take all my days to keep that itch happy.
The Alt space for me is in flux right now. Only a few of the ICOs of last year have reached main net launches and the positive, love child aura around anything crypto has definitely dissipated since those days.
But the list of coins and tokens on CMC is climbing none the less to stand at 1910 at press time. I think this is too many.
You know that all these coins must represent a huge pile of garbage. Inside that garbage heap are some gems. Some are hidden and some are becoming discovered. The more garbage there is, the harder it is to find gems.
And gems are nothing if you are the only one to find them. These gems need life to live. They need to get attention and build communities that actually use them for their intended purposes. This is the only way these gems will shine for investors.
I have that nagging feeling that I am living in a bubble. I hold an assortment of cryptos, but I have hardly ever used one for its intended purpose. I have made a few p2p payments to friends around the world, but this has been only btc and I can count on one hand how many there have been. Not really adoption.
Around me people thing bitcoin is dead, and I am back to being some kook interested in strange internet fads.
In a way that is my natural place in cyberspace: A "fringy kook", but I acutely know somewhere deep down that this technology is not going away, and in fact the world around us is regressing further toward creating the ideal conditions for this tech to thrive.
Our target of adoption is still far away on the horizon, and of late it does not seem to be getting any closer.
But we keep on paddling toward it, even though we only use paddle pop sticks at the moment.
Ahh, the bane of the hodler.
As always guys, leave comments, have fun and trade safe.