Understanding Bitcoin’s Price Action
Bitcoin (BTC) experienced a brief surge, peaking around $24,500 on August 17, only to be met with skepticism. This resurgence suggests that while the bulls are hoping for a significant rally, it seems the bears are still quite formidable, ready to pounce at any sign of weakness. On-chain analytics from Material Indicators revealed that the ask liquidity on Fire Charts closely mirrored previous local peaks, indicating resistance levels are formidable.
The Role of Traditional Markets
If we look to the S&P 500, traditional stock investors may rise in tandem with or against crypto prices. Recently, Jurrien Timmer from Fidelity Investments pointed out a rather alarming statistic: a staggering 88% of S&P 500 stocks are trading above their 50-day moving average. That’s not just stunning; it’s soothing like a lullaby before an avalanche. This overbought condition raises valid concerns for crypto investors who typically track traditional markets.
Michael Burry’s High-Stakes Position
Adding to the caution is none other than Michael Burry, the infamous investor who shorted the 2008 housing bubble. He recently made headlines by dramatically slicing down his equity portfolio in Q2, presumably anticipating a sharp downturn in the stock market. When Burry speaks, it’s wise to listen—unless, of course, you’re someone who thinks they can dodge a falling piano.
Long-Term Investments on the Rise
The short-term outlook may be shaky, but it seems corporate investors are humbling themselves and writing hefty checks. Corporate entities invested approximately $6 billion into blockchain startups from September 2021 to June 2022. That’s a significant leap from the $1.9 billion invested between January 2021 and September 2021! It’s like watching someone experience a growth spurt right before your eyes.
Critical Levels to Watch
The million-dollar question that’s got the crypto community buzzing is—what levels should we be watching to gauge whether this recovery is truly fading? To get to the crux of the matter, we’ll dive deep into the charts of the top 10 cryptocurrencies, searching for support levels that may indicate whether the bears have turned the tide.
