Market sentiment is overly bullish in crypto, low caps are making 20 to 70% daily rallies across the market in the last week, with the less known ones playing catchup, while popular larger cap alts are stalling out. Many are calling another leg up.
I don't have reason to believe this when looking at NAS100 price action, which is strongly correlated w/ crypto PA.
I see a broad consolidation spanning months.
(During a consolidation pattern, volume typically decreases as the market moves within a narrow range and investors become less active.)
Contrary to what's happening in crypto atm, volume has kept on a steady decline. While volume dropped off entirely in crypto for most of this period, we saw massive short squeezes this month fueling FOMO spot buying from those who'd sidelined late 2022.
Given the broader market bullish sentiment, there's a chance spot and 0DTE buying will continue into next week.
This short strategy is betting on a fake-out (see: trendline), with a stop above the next level of resistance.
I don't have reason to believe this when looking at NAS100 price action, which is strongly correlated w/ crypto PA.
I see a broad consolidation spanning months.
(During a consolidation pattern, volume typically decreases as the market moves within a narrow range and investors become less active.)
Contrary to what's happening in crypto atm, volume has kept on a steady decline. While volume dropped off entirely in crypto for most of this period, we saw massive short squeezes this month fueling FOMO spot buying from those who'd sidelined late 2022.
Given the broader market bullish sentiment, there's a chance spot and 0DTE buying will continue into next week.
This short strategy is betting on a fake-out (see: trendline), with a stop above the next level of resistance.