Market Momentum - Keeping Things Simple
Markets are difficult to navigate, but there are certain junctures where your decision-making is quite simple. With BTC and ETH meeting their 200-day moving averages for the first time since October 2023, the market is in such a place right now.
Preview
TLDR
- Markets are always uncertain, but there are certain junctures where your decision making is made very easy. We argue that market participants are faced with such a scenario now.
- BTC and ETH are currently trying to reclaim their 200d simple moving average, after touching them for the first time since October 2023.
- Although Bitcoin ETF flows continue to be strong, BTC is currently plagued with the distribution of seized BTC from governments and Mt. Gox. ETH spot ETFs offer the only significantly bullish narrative for majors in the short term.
- The reaction to any positive news regarding spot ETH ETFs will act as a barometer for market sentiment – “it is not the news that matters, but the reaction to the news”.
- The new altcoin trading regime involves more-frequent rotations and quicker profit-taking. This will stand true for altcoin longs whether majors are above or below their 200d moving average.
