Chips Forward

People are losing their minds over Iran and the crypto selloff.

Meanwhile, for the first time in months, my crypto account is fully allocated.

I've pushed my proverbial chips forward.

Bitcoin's putting in a basing pattern. Yeah, the short-term price action is messy and sideways, but that's what bases look like.

And it's no coincidence this is happening right at prior cycle highs.

We've got two positive weekly candles as price retests that level. The confirmation I'm watching for is a break above the AVWAP from the YTD highs (the black line on the chart).

Get above that, and we're away.

Look, if you've been reading me, you know I'm not one these permabull guys. I'm not sitting here spinning yarns about Bitcoin going to a million bucks. I couldn't care less about that.

I care about making money off these trends. Sometimes the right play is selling Bitcoin. Sometimes it's actively shorting the thing. I've done both.

But that moment has long passed.

We'll look back at this and think it was pretty bloody obvious we should've been adding exposure here, not running for the exits.

Cheers,

Louis Sykes
Senior Crypto Analyst, All Star Charts