Home » Market Recap | 2021 #21

Market Recap | 2021 #21

Dear AbNormals,

How’s everyone doing? The market has been quiet lately due to the fact that we had a crazy dip 2 weeks ago so we’ve been recovering ever since.

What’s the market saying right now? Recovery? We’re still in a bearish sentiment, a lot of emotions in the market right now.

What happened last week?

Technical Analysis

Alrighty, technicals, my favorite place to be and just watch the market move.

ETH and BTC are both in a bearish range, but ETH is bouncing into a tiny bull trend. We can’t know for sure, we need a lot more candles to know where this is going. Keep a close eye on the price action of these two.

BTC Daily (above) ETH Daily (below)

Bitcoin Dominance is still bleeding heavily

Bitcoin Dominance

Ethereum is still holding strong against Bitcoin, a little bit of a correction and back up.

ETHBTC Weekly

Metrics

Let’s take a look at some metrics, I love to take a step back and zoom out to look at the bigger picture.

Bullish

Exchange reserves

Ethereum

I don’t like these spikes in deposits, so I’ll keep a close eye on this

ETH: All Exchanges Reserve
Bitcoin

Same goes for BTC, an uptrend in user deposits

BTC: All Exchanges Reserve

We had bigger spikes in exchange inflows in the past that clearly indicates in a selloff so we’re still bullish?

https://s3.tradingview.com/snapshots/v/vWqa6buW.png

Bitcoin Miner Position Index

Bitcoin miners are still not selling since March 2021 which is really surprising, they HODLed through the whole crash.

BTC: Miners’ Position Index (MPI)

Fear and Green Index

The market is extremely fearful and I don’t blame them. This is a perfect opportunity to buy the short term investor’s bags.

https://alternative.me/crypto/fear-and-greed-index/

We’re now at the same level as the COVID-19 crash in March and we all know how well the markets recovered from it.

https://alternative.me/crypto/fear-and-greed-index/

RHODL Ratio

This is the RHODL Ratio. The red area indicates a market top and the green area indicates a market bottom. As you can see, we’re 1/4 away from the top so enough room for more upside potential.

https://www.lookintobitcoin.com/charts/rhodl-ratio/

200 Week Moving Average Heatmap

This is the 200 week moving average heatmap. When the orange and red dots show up then it has (historically) been a good time to sell as the market overheats (aka Extreme Greed). This indicator has made my PlanB .

https://www.lookintobitcoin.com/charts/200-week-moving-average-heatmap/

Bitcoin Unrealized P&L

We’re currently in the Optimism-Anxiety, but nowhere near the Capitulation when the Covid crash happened back in March 2020.

https://checkonchain.com/btconchain/unrealisedpnl_pricing_usd/unrealisedpnl_pricing_usd_light.html
Keep in mind that this indicator is very slow and lags behind the current market situation, good for super long term data.

Bearish

The exchange inflows are tipping to a bearish indication, but it’s still too soon to tell.

Conclusion

The market is very fearful right now so there’s a lot of buying opportunities. When people are panic selling then it’s generally a good time to buy . #NotFinancialAdvice

That’s it for the market recap of Week 21 2021, I hope you enjoyed it and as always: Stay AbNormal!

What am I doing right now?

I’m out of bullets to buy dips, so I’m hodling again. I’ve added some Yield Farming strategies in my Cashflow check our overview.

Yield Farming in DeFi

Tip Jar

If you appreciate the work I’m doing, consider supporting the website 😊

ETH or ERC20: mitchel.eth
BTC Segwit: bc1qqfnfkrnhv903v9v38n98vvk35hgrp77ay7kwqr
BTC legacy: 1DhGZ1kvEF1wamq3oRb4f7pPz3cMBaxKz

Reminders

I’ll list some reminders for you guys and useful articles to help you understand certain topics better.

Crypto money flow

Always keep this image in mind, money flows from asset to asset.

Crypto Money Flow
https://www.rektcapital.co/articles/cryptomoneyflow

Fear is the mind killer

Take control of your emotion, and remember that you are the one pulling the trigger. It’s a lot harder than it sounds. This is the reason why you can’t rely on demo account or play accounts, because you’re taking away the biggest hurdle of an investor, EMOTIONS.

https://link.medium.com/SqECGkeNegb

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