This was a pivotal week in the crypto market. Not only was it a key time factor from the April low but it marked an important seasonal inflection point. In my view the reaction we have seen so far signals to us that this crypto market has crossed the rubicon and the runaway bull market is officially underway.
Going into the week there was a key question of whether or not the market would face the strongly negative seasonal headwinds of August. That question was answered by the reaction we saw investors take to the sell off and then the subsequent move in price.
The immediate response by investors across all market has been to hit the exits at the drop of a hat. This quickly pushed the market into oversold levels and tells me that no matter how strong this move has been people are still very fearful. That is not how you get a major weekly top.
Taking this insight further we are looking at what this means as we line this market up from a structural point of view with the 2017 and 2021 runaway moves. You will see that this current market is very closely resembling the prior two cycles where we hit escape velocity.
Lastly, in these Friday market wraps I have been taking the chance to look at some of the underlying conditions and narratives that are surrounding this market and propelling it higher. Between the SEC issuing its official Project Crypto report and China starting to show signs of life, the tailwinds seem to only be getting stronger.
The up only moment we have been waiting for the last four years is finally upon us.
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