Crypto Market Is Getting Ridiculously Euphoric; Bitcoin Only Consolidating with Several Catalysts Ahead
The price of Bitcoin remains weak, going back under $57,500k today after recovering Wednesday’s loss to about $55,500.
According to HXRO Labs, Bitcoin can continue to range for some time, punishing the late longs, which are getting liquidated time and again. Since the $3.64 billion liquidations on Feb. 21st, there have been six liquidations ranging between $1 billion to $2.2 billion and another ten liquidations between $500 million to under a billion dollars of long liquidations.
While the funding rate on perpetual contracts has normalized, currently the highest being 0.0266% on Binance, it doesn’t take long for the degen longs to go overleveraged.
“Weekly chart is in no rush to service the needs of late bulls who are levering up at the highs trying to catch the next expansion move. Markets have a way of driving you mad with impatience and poorly timed decisions before making THE move that everyone has been waiting for,” noted HXRO Labs.
According to the trading firm, the continuing consolidation bodes well for the intensity in the next leg up. “Seems highly probable we’re not witnessing a “top” in the market, but we COULD be,” it added.
The market doesn’t expect this to be the top yet either, but it does expect a short-term top to form before the end of this quarter.
Top signals flashing in crypto
-Bitcoin heats up too easily
-BTC has its 1st lower high
-DeFi topped Feb
-NFTs just topped
-Legacy coins pumping
-Idiotic ideas fund-raising millions
-New tokens pump multiples
-Rugs & apes everywhere
-Very late entrants boasting about profits
— Alex Krüger (@krugermacro) April 7, 2021
While things are getting “ridiculous” on every level in the crypto market, “macro remains constructive,” stated trader and economist Alex Kruger.
The biggest bullish news right now is Coinbase going public next week. This week, with its Q1 2020 report, Coinbase has already blown the traditional finance.
The explosive growth had the exchange earning $1.8 billion in revenue, $335 billion in trading volume, and having a whopping 56 million users.
“Huge win for the crypto industry that was written off as a “fad” and a “Ponzi scheme” by some finance magnates,” noted HXRO Labs. Coinbase’s plan to spend over $1 billion this year on sales & marketing further means only “good things for crypto as a whole, as the biggest US on-ramp takes it next level.”
Not to mention, the market has high expectations for a Bitcoin exchange-traded fund approval in the US. If Canada’s Bitcoin ETF growth is any indication, the Purpose Bitcoin ETF has accumulated 16,823 BTC in less than two months, the product launch in the US would be explosive.
The crypto market is particularly bullish on Ether, whose EIP 1559 will make it more scarce and create a positive feedback loop for its prices. Just last week, ETH made a new ATH at $2,150.
Compared to Bitcoin’s 95% YTD performance, Ether has rallied 178% but is still lagging in terms of putting in new highs. In 2017, Ethereum was among the top gainers with more than 9,100% uptrend compared to Bitcoin’s just over 1,000% rise.
Bitcoin’s consolidation is actually helping altcoins rally with exchange tokens soaring and blockchains like BSC and Solana SOL 4.80% Solana / USD SOLUSD $ 23.05
$1.114.80% Volume 1.05 b Change $1.11 Open $23.05 Circulating 383.61 m Market Cap 8.84 b 1 y Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 1 y Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 1 y Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows getting a lot of usage.
The total market actually hit $2 trillion for the first time this week; still, HXRO said, “there is so much room for growth based on what I’m seeing in the VC space.”