Bitcoin while still in a trading range, looks like it is forming a double top. As we have reiterated, it is statistically a losing proposition to buy the breakout of any trading range. After all, markets have inertia and will continue what they have been doing 80% of the time. With that being said, BTC has been showing significant strength in this market with only minor one-day pullbacks.
Small pullback trends are the most potent form of trend which traders can experience as they slowly advance without showing any sign of weakness. These types of trends have the tendency to sneak up on traders and by the time most have identified that the market is trending, many feel that it is too late in the move. As of right now, we still favor a trading range, but if the market continues trading like this, we may also be witnessing the start of a small pullback bull trend.
Throughout this week, we have started to see the distribution of FLR (Spark) tokens. In December 2020, holders of XRP had the opportunity of participating in a snapshot, which would reward them with FLR. After years of delays, we have finally started to see the rollout of the Flare Network, where XRP holders are finally starting to receive their long-awaited Spark. Flare functions similarly to Cosmos and is designed to provide interoperability between different blockchain networks. Additionally, FLR holders will have the opportunity to earn and compound rewards.
As more Flare has been distributed to airdrop recipients, we have seen the price of FLR decline by 70%. Something else we would like to highlight is that the maximum supply of FLR is 100 billion with 15 billion in circulation right now. We believe that projects such as Flare, Coreum, and Sologenic are great altcoins to diversify into as they reward their holders with additional airdrops. We feel that these projects in particular can help insulate investors from this crypto bear market.