Cryptocurrencies: Is This Uptrend Rainbow Different?
Tim Knight | Oct 18, 2021 12:28AM ET
One of the reasons that I like crypto is that it never stops trading, so even on weekends, you can get a sense as to how the Asset Animal Spirits are doing.
As I’m typing this on Sunday afternoon, crypto is on the weak side, and it makes me wonder again if this “post-rainbow” market is going to be as weak and lengthy as the last two. One thing is for sure—I’ve never seen as many crypto ads as I have recently, including those touting pushing your entire IRA savings into crypto.
I will say, in the bulls’ favor, that so far this “post rainbow” action (lower portion) has been far stronger than what happened the last time (upper portion). However, we haven’t pushed to new highs, so the prospect of a multi-month stumble still exists.
One other item I would point out is that Ethereum seems to be weakening more swiftly than Bitcoin. We can see on the %R indicator that it’s very likely we’ll cross below the 20% threshold, which in both prior instances preceded a meaningful decline in value.
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