Crypto Consolidation or Pullback?

Won't get into the details of the "news" of the day which you can get from any source but I found this tweet very interesting.

Regardless of how one feels about CZ Binance. His securing a soft landing with US agencies was very crucial for the entire crypto space.

My major takeaway was

Customer funds are safe. No issues with any withdrawals.

Binance resolutions with the U.S. agencies they:

- do not allege that Binance misappropriated any user funds, and
- do not allege that Binance engaged in any market manipulation.

So now we can move on to trades.

From a value standpoint, the bull thesis is playing out well.

Any correction could be used to accumulate/build core position where you highest conviction.

In the thesis, I have already laid out what I look for in my core holdings. There are picks and targets mentioned in there too.

Since the thesis was published some of the stories have gotten stronger. Many are up 50%-200%

Here are some of the picks where the conviction has gotten stronger for the long-term


Majors - BTC & SOL
Picks & Shovel plays - DYDX & BLUR

Crypto Stocks

Majors - COIN
Picks & Shovel plays - Galaxy Digital & KR1
BTC Miners - Riot & CLSK

Likely that the entire basket could do a 500%-1000% return in the next 18 months. NFA off course.

Lets move on the short term stuff.

Earlier today I tweeted while the whole Binance DOJ saga was playing out.

The whole Binance resolution was holding back a lot of institutions to allocate into crypto.

So after such a major good news markets should have rallied. It dint. Thats information.

Adding to it, we have had a one-way up move from Sept to date. Both in Crypto and TradFi. We are at major resistance too.

Good thing we were long throughout and captured all the moves in Majors and Alts.

Now Model also picking up signs of Trend Exhaustion.

There are 2 ways this would get resolved.

Time Correction. Price Correction. Or both.

It's a good time to book some profits. Get out of low-conviction plays and wait till we get a resolution.

While I will send another note when we get the resolution, here are some of the price levels one would consider for the bearish move to be over.

BTC break above 38K.

Time to be cautious in the short term (tighten all SLs on all positions. Swing low on a 4-hour timeframe is a good one.) while looking for opportunities in the medium term.

See you in the next post.

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