While crypto is down, Helium is up. That's relative strength.
I'm also watching Polygon for longs and Maker for shorts.
More widely, the correlation between crypto and stocks is back. With Bitcoin nearing my bullish invalidation of 56,000, stocks are selling off and that's dragging crypto down.
Crypto markets have been trending lower and I have purposefully been putting on very few trades. I think this is the best approach for now while the market sets up.
View this as a positive thing, because while many are losing money and getting emotional, we have the ability to be patient and preserve our capital.
This means that when the good times inevitably return, we can go back to making money rather than clawing back from a drawdown.
I briefly walked through how I want to be patient trading names in the short-term while focusing on relative strength.
While today's name isn't currently actionable, it is just a stone's throw from being so. And, it's both a relative leader as well as having the tailwind of smart money in behind it.
There's nothing to provide updates on, nor any new trade opportunities I have seen.
I am reiterating the message earlier in the week.
I think this is a good place to add long-term exposure, but do not believe it to be good for short-term trading opportunities; more patience is needed here.
Our choice of investment vehicle in the crypto space isn't just limited to altcoins and tokens, but there is also of course a wide variety of publicly-listed companies to choose from.
I've talked at length about the Bitcoin mining stocks, albeit less in recent times. While many of these stocks have broken down, there could be an opportunity shaping up in many of these stocks.
These tapes are a perfect time to hunt for leadership. More often than not, when the tide inevitably shifts back to a buyer-driven market, the assets that showed strength in a weak tape continue to lead.
While on this recent correction the selling has been indiscriminate, we're spending the next week or two to assess any relative leaders.
Two days into a recovery, we've seen the DePIN and memecoin space show some leadership. Today's note covers a few tokens within these groups leading this strength, as well as providing a brief market update.
I believe there to be a rather spectacular opportunity lining up in crypto markets. We've seen a decent portion of tokens give up their entire bull market gains and are now back to where they started.
If you're making the bet, as I am, that crypto and web 3.0 aren't going away anytime soon, I think this recent calamity in the price action of these tokens present a rather favorable opportunity.
I outline my thinking as well as twenty trade ideas I like to take advantage of this.
