Trend Reversal? First ’10-Day Bitcoin & Ether Performance’ to Reveal What’s Ahead
After the weekend woes, this week is yet again seeing some greens.
While the total market cap has gone up to $1.7 trillion, it still keeps between $1.5 trillion and $2 trillion.
Bitcoin price is also trading sideways, between the $32k and $42k range. As of writing, BTC/USD is around $36k.
Once this trend changes, Bitcoin will make its way upwards, continuing past $38k to the low $40ks, said trader and economist Alex Kruger. And given that altcoins are “high beta bitcoins,”… When the Bitcoin trend reverses, “alts generally rip faces. It is as simple as that,” he added.
As for what will drive this change, we need fund inflows after weeks of outflows and dovish China. Already, the market is oversold after the 50% pullback, and we also see record stablecoin balances, which further works in favor of positive momentum.
According to Jeff Dorman, CIO at digital investment management firm Arca, “Fund flows come in on the 1st of the month, & all indications from OTC desks & funds suggest another record month of inflows.”
One measure of this institutional interest in digital assets can be seen in the first 10-day returns of each month.
Back in 2019, Fundstrat’s Tom Lee has talked about this “rule of 10 best days” in reference to Bitcoin, noting that the leading cryptocurrency has been recorded all of its year’s performance in about 10 days since 2013 and the rest of the days, the crypto asset has been down 25% per year.
As such, the latest improvement in prices “could very easily have been sparked by new money being put to work through OTC channels, front-running their inflows (buy today, settle tomorrow),” said Dorman.
Moreover, central banks around the world aren’t done printing money or devaluing their currency to gain the upper hand.
Congratulations; we hit $100 trillion this week. That’s the cost of keeping Western civilization together pic.twitter.com/FBC4RcDPRi
— zerohedge (@zerohedge) May 30, 2021
“If new money is coming into the system, it’s very possible that this money will flow into asset prices, which will remain elevated for the foreseeable future,” noted analyst Mati Greenspan.
This article is Originally posted on CoinCentral.com