As we can see from the massive green rally today, it seems like BTC is back to misbehaving a bit. In other words, FOMO is back in town. That being said, I'm not entirely sure this is sustainable, and we are probably going to see a considerable correction very soon.

We blew past resistance at 6400 and have hit 6900 in some exchanges already. All this has happened in one day, and from what I see on the charts, it's not cooling off just yet. One can speculate as to the reasons why this could be happening and if I had to make an educated guess, it might have to do with exchanges exiting their Tether positions, but of course I have no way of confirming this.

More Hodlers?

There are a few analysis out there that suggest that we've been cruising the accumulation zone for a while, and that there's been a massive growth in the amount of wallets that have no outputs. This means in simpler terms, that HODlers having been gobbling up all the BTC they possibly could for months.

Simple market dynamics would then explain what is happening, if the supply is lower, then we should and ought to rally, but of course this is also speculative, at least partially.

Don't forget

Some alt coins look like they are being pumped too, but make sure to look at your favorite altcoin in BTC valuation. As it so happens, still to this day BTC is what provides altcoins with liquidity, and even though many people don't like to admit, the game is always about trying to accumulate more BTC.

If you are trading, don't get too crazy, have an exit plan before you get in.

Stay safe

MenO