All Star Charts Crypto Articles

The buzzword over the last few days has been the "Metaverse", but what is it, and why should we care?

Breaking all the headlines last week was the big tech news that Facebook was changing its name to Meta, realigning it with its future goals and ambitions. The metaverse is seen as the next iteration of the internet through virtual reality, primarily as a new way of experiencing the world of social media.

Following all this talk, virtual reality and gaming cryptocurrency protocols have caught a nice bid, with Decentraland and Sandbox up over +320% and +250%, respectively, since the Facebook Connect event.

And just take a look at the explosion in google searches about the metaverse:

This has acted as an immediate tailwind for the crypto and decentralized protocols pushing this technology and has certainly been a pocket of the asset class that is garnering plenty of attention.

We may not be early to this...

This is the video recording of our October 29, 2021, All Star Charts Crypto Weekly Strategy Session.

In yesterday's note, we outlined our tactical short if Bitcoin was below 59k.

We gave the bears the benefit of the doubt, but they couldn't keep prices under 60k for long at all.

We have no shame in being wrong and flipping our approach as new data comes in. In fact, we pride ourselves on always adapting to new evidence and never being dogmatic. The quicker we know we're wrong the better, because we can move on to bigger and better opportunities. In this case, we knew in just a few short hours!

This seems like a textbook failed head-and-shoulders pattern right now:

We like it best when patterns don't work, because it can create a major whipsaw that can send prices immediately higher. For a deeper dive into why this is the case, read this old post of ours.

So, with our shorts positions quickly closed, it's now irresponsible to be short if Bitcoin'...

Over the last week, we've raised attention on the increasing leverage being introduced in the derivative markets elevating the downside risks of the overall crypto market.

We were seeing this with record-high open interest across the board and excessive funding in the face of declining prices.

This morning, we've seen this downside risk play out in some respects, with $200M worth in Bitcoin positions getting liquidated over the last 24 hours, quickly sending prices below 60,000.

For the most part, traditional markets have been a fat mess for the better part of this year.

That's why crypto has caught our attention so much in recent months: It's stood out as a beacon of alpha.

Whether or not you've been invested in crypto, chances are you've probably heard all the chatter about Solana - and for good reason. It gained a whopping 700% from its July lows in just under two months, making it one of our best trades of the year.

But, when you dive down the cap scale, there are so many opportunities shaping out just like how Solana was a few months ago.

Harmony is one of them:

We've been long Harmony on this breakout above 20 cents, and so far it's treated us very well, with prices are running up against our first upside target of 33 cents.

It seems to have a great fundamental use case, bridging together a variety of smart contract platforms and essentially making...

All-time highs can be messy, and many times, the breakout comes after the shakeout.

So will it be like this?

Considering the accumulation taking place by long-term spot investors on-chain, it's certainly looking that way.

Yesterday we saw a notable outflow out of exchanges as investors continue to scoop coins off exchanges and into cold storage to HODL.

Not bearish.

So if and when Bitcoin resolves higher back above 65k, we'll be positioned aggressively long both Bitcoin and in quality alts.

We're talking Ethereum, Solana, Harmony, Avalanche, FTX, Algorand, and Elrond, among a few others.

There's likely to be a ton of alpha in those names in the...

This is the video recording of our October 22, 2021, All Star Charts Crypto Weekly Strategy Session.

Bitcoin officially made an all-time yesterday, eclipsing its first-half highs around 65,000.

The importance of this cannot be overstated.

The question is whether or not Bitcoin can stick the landing. It's likely to be a process.

Our Top 5 Crypto Index is also on the verge of completing this major base.

Over longer timeframes, this price action is far from bearish.

Over the last month, we've argued that there's evidence Bitcoin could lead the altcoins.

We've seen this play out, but it looks like Bitcoin could be due for a rest relative to its counterparts.

Rotating Bitcoin profits into the coins showing relative strength makes sense right now:

Let's run through some of them.

Buyers are still in the process of absorbing Bitcoin's overhead supply around 65,000, and we're yet to see a decisive breakout.

We hate sounding like such a broken record about this level, but we really need to be downright obnoxious about its importance.

Though we think Bitcoin will eventually breakout, we wanted to dive deeper into the near-term risks associated with the leverage that speculators have recently adopted that elevates the risk of another potential long squeeze in the coming weeks.

In this chart, we're looking at Bitcoin's total open interest as well as the open interest held exclusively in perpetual future contracts. Since Bitcoin bottomed at the end of September, we've seen OI jump by a notable $11B in just 3-weeks.

Just like that, Bitcoin hit our upside objective.

Now, patience is warranted as demand begins to absorb the looming supply around these levels.

It'd be prudent to raise cash and take some profits off the table while Bitcoin is below 65,000. Below there, the downside risks remain elevated for now.

This is the video recording of our October 15, 2021, All Star Charts Crypto Weekly Strategy Session.

Some of us were discussing internally today's topic.

After a few minutes, we were stumped.

The market hasn't given us much to write about over the last week.

And that's fine. If the market isn't giving you anything new, don't spend your day looking at the screen for something that isn't there.