Home » Market Recap | 2021 #16

Market Recap | 2021 #16

Dear AbNormals 👋,

Oh wow what a week! BTC is down 16%, ETH has been recovering nicely but it’s still down 3% since last Sunday. I’ve been taking a break from all the news, cause there’s a lot of FUD going on and it’s making matters worse.

Let’s focus on the good news, DISCOUNTS, the market is really at a discount right now. We can’t go up forever, right? Market corrections are normal.

Technical Analysis

Alright, time to look at some charts. Let’s see what’s in store for this week. We’ll take a look at BTC, ETH and ETH vs BTC. We only use higher timeframes such as Daily and sometimes Weekly to really zoom out for the bigger picture.

BTC has been looking quite bearish lately, a lot of selling pressure and a lot of FUD. I’ve got my eye on the 44k level, you should as well.

BTCUSD Daily

ETH is still looking very bullish, a lot of buying pressure to keep the price at the upper band level. We might see another ATH this week of the buyers keep this up. There’s a lot of things happening in the Ethereum’s space, one of the biggest is the London upgrade in July and the Merger in early Q1 2022

ETHUSD Daily

This is a beauty, my favorite asset ETH is outperforming BTC. Green candles for 4 weeks straight and there’s lots of potential left.

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. This is exactly why I don’t use lower timeframes when I do my TA.

Bullish

Exchange reserves and netflows are still bullish. No spikes in deposits nor withdrawals, people are hodling.

https://cryptoquant.com/prochart/fp272opepr

Miners are still not selling since March.

https://cryptoquant.com/

The Fear and Green index has been moved from the bearish metric to the bullish. You want to position yourself when people are full of fear and emotions. A good indication to start accumulating slowly, buying the dips.

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

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/

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

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

Bearish

When almost 100% of the hodlers are in profits, euphoria will kick in and people will get greedy. The market is a very sensitive place and it can cause a lot of volatility.

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

Highlights of the week

Gas fees has been dropped significantly because of 2 reasons

  1. Flashbots have found a solution by bundling the bots transactions together
  2. An increase in block size
https://www.gasnow.org/

Conclusion

This week is full of buying opportunities. The market is fearful so you need the be the one with the buckets when it’s raining gold. ETH is really outperforming BTC, but I won’t be surprised when BTC makes a comeback. After all, money flows in crypto, if you don’t understand how the money flow cycle works then you would read this article by Rekt Capital.

It’s shown that money stays in circulation in the markets, it’s barely converted back into fiat.

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

I hope you enjoyed this new weekly recap, stay sane, keep hodling and as always: Stay AbNormal ❤️

1 thought on “Market Recap | 2021 #16”

  1. Pingback: Market Recap | 2021 #17 » AboveNormal

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