There is not much to say in this market, other than the fact that we are crabbing hard. Optimists would have you believe that that this is a period of consolidation for whales. Pessimists, on the other hand, will argue that interest in crypto has dropped considerably and there is no one left but HODLers. While traders wait for breakouts in either position, a sideways market can be seen as bullish when contextualized within the wider macro environment.
Source: CoinGecko
BTC has been ping-ponging between 28k-30k for the past week which is boring and somewhat depressing.
Source: TradingView
However, boring can be good, considering the firestorm that is happening in TradFi. The S&P officially entered the bear market after falling 20% from its record highs at the start of the year. This marks the first time since the crash in March 2020 at the start of the COVID-19 pandemic. It has also posted its seventh straight week of losses, which has not happened since March 2001.
Source: TradingView
Tech stocks have been doing worse as the Nasdaq-100 marked experienced a 28% drop from its yearly high.
Wider market concerns regarding a recession have not changed. However, over the past week, a lot of market-defining news has come to light. The Federal Reserve has become more hawkish, indicating its willingness to keep raising interest rates to reduce inflation. Many retail companies have seen sharp selloffs across as big players like Walmart and Target have warned about tightening profits due to inflation. Meanwhile, bigger tech companies like Netflix and Facebook have started to cut costs by reducing headcount, furthering the amount of FUD in the air.
It is surprising then that despite being treated like a growth stock for months, BTC has not wavered and held the 28k-30k support line. Notably, even Peter Schiff, one of the biggest anti-BTC figures, has begrudgingly admitted that BTC is holding up surprisingly well, despite the wider market nuke. Perhaps a decoupling narrative is starting to take shape?
