It’s been a wild ride for crypto these past few months.
The post-election rally was one for the record books.
But the same is true for the steep and swift drawdowns that have ensued.
The majority of these altcoins are down more than 50% from their December highs. The average cryptocurrency has been decimated.
It is common for volatility to spike in both directions at inflection points… and I think the entire crypto market is at one now.
The question is what direction are we going in?
When I think of charts like Binance, Ethereum, or Solana… they’ve been rangebound for a long time. These primary trends are sideways.
Here they are shown trading right around the same levels they were at in Q1 of last year:
So it could really go either way. I don’t have a strong opinion on whether they resolve higher or lower from here. But when I see a resolution, I’m going to go with it.
I’ll be adding on breakouts and I’ll be out if these ranges break down. In fact, I already sold the majority of my SOL which was by far my largest crypto position this cycle.
I think we have to treat them all on their own merit here. I like the idea of adding to new leaders like HBAR, SUI, and XRP as long as they are above the election VWAPs. Here’s what that looks like for Hedera Hashgraph:
And I think BTC still looks as good as anything. It’s all about the election VWAP here too:
BTC has tested this VWAP and bounced off it at least 4 times in the last two months. This is the line in the sand for me right now. If we’re below it then BTC is breaking down from a multi-month top. I won’t own it anymore.
But that’s not what is happening. Buyers keep showing up to defend this key level.
As long as the best cryptos keep holding on at their election VWAPs I think things are okay in the world of crypto. I also think you can trade them long against these levels. I am.
But, I’m really not the one to ask. Louis is my go-to guy for crypto analysis. He just broke down the recent volatility on last night’s special event call. If you’re invested in crypto, you should hear what he had to say. Check out the replay here.
