The Crypto Market’s Impressive Recovery Continues
It’s hard to remember that there ever was a correction last week, as the cryptocurrency market seems to have regained its stride.
• Bitcoin (BTC, Tech/Adoption Grade “A-”) is up almost 2% today and has climbed back above $58,000.
• Ethereum (ETH, Tech/Adoption Grade “A-”) is up again today and seems to have secured the $1,800 level.
• Binance Coin (BNB, Tech/Adoption Grade “C-”) is up and running again and is on the verge of crossing above $300 again.
Bitcoin has come alive today on a 2% gain, pushing past resistance at $58,000. The King of Crypto is now up $8,000, or 16.5%, from last week’s lows, has regained its 21-day moving average and looks poised for another run at all-time highs.
This is an impressive showing from the Bitcoin bulls, as BTC appeared ready for a prolonged correction just last week. The bulls have staved off any effort from the bears to push down and consolidate prices.
We’re currently in the longest Bitcoin cycle ever, as the bulls flat-out refuse to let this one end. If Bitcoin is able to break through its recent high of around $62,000, we could see another strong push to new parabolic highs. At the same time, a failure to get to new highs within the next two weeks could be an early sign of another cooling-off period.
Here’s BTC in U.S. dollar terms via Coinbase:
Ethereum had dropped to as low as $1,550 last week but has since come back with force, stabilizing above $1,800.
ETH has bounced back above its 21-day moving average and looks much healthier this week. It is, however, at a critical juncture and needs to make a push above $1,900 here soon. After that, it’ll be poised for another shot at the all-time high of around $2,050.
The bulls seem to have control here, so let’s see what they can do this week.
Here’s ETH in U.S. dollar terms via Coinbase:
Binance Coin is up more than 30% from its lows last week as it sits on the cusp of $300 yet again. If BNB is able to regain that resistance level, it would have no real resistance on its way up to previous highs. A breakout here means a new all-time high is likely.
Binance Coin and the Binance Smart Chain have skyrocketed in popularity this year, as its fees are significantly lower than Ethereum’s. All of the positive press seems to be pushing BNB’s price higher.
Here’s BNB in U.S. dollar terms via Binance:
Notable News, Notes and Tweets
• In a massive move toward widespread adoption, PayPal Holdings Inc. (Nasdaq: PYPL) introduced a checkout service that will allow users to pay with crypto.
• Add Pomp to the list of crypto founders that have moved to Miami … I think we’re starting to see a trend here.
• Another friendly reminder to never give out your private keys …
What’s Next
There have been a few instances so far in 2021 where we’ve rung the warning bell on an impending extended correction, only for Bitcoin and the cryptocurrency market to bounce back with authority.
It’s happened again this week, and I can’t say I’m upset about it.
However, this market is overextended, and I don’t think there’s any debate about that … except from the analysts pushing the “supercycle” theory.
The crypto bulls are seriously flexing their muscles so far in 2021, and if Bitcoin and Ethereum can reach record highs in the next week or so, we might see another large extension of this bull cycle.
At some point, there will be another correction, something along the lines of 30% to 40%, and that lasts weeks or months. Unless you’re timing the market, you should just use that as another buying opportunity.
The reason is that we’re in a massive, long-term bull market that we expect to continue (with a few more corrections here and there) until sometime in early 2022.
There is room for up to fivefold gains in Bitcoin before this long-term bull market fizzles out. So, for all you HODLers, sit back, relax and enjoy this (bumpy) ride.
Best,
Alex
