Bitcoin’s price action remains uneventful. BTC has been in a trading range for over 20 days, meaning there is a 50/50 probability of the price trending up or down in the short term. The trading range itself is beginning to grow narrower and narrower, meaning that the marker should make a decision about what direction Bitcoin will go.
Ethereum is giving us some hints that Bitcoin may in fact see an additional leg up. Rather than consolidating like Bitcoin and the majority of altcoins, ETH has diverged and is continuing to move higher. Resistance for Ethereum lies at $2,000 and in our opinion will mark a double top if it reaches that level. We will have to see if a rally in Ethereum will give Bitcoin the momentum it needs to breakout into the upside.
Hedera is still in an overall downward trend. Our strategy for altcoins like HBAR is to wait for BTC to retest and potentially break new lows. Around that time, coins in our model portfolio will be at terrific entry points and have a high probability of increasing in value during the next Bitcoin halving cycle.
Should we see a crack in equities and the stock market over the next few months, then we expect to see COIN retest previous lows. We believe that Coinbase will continue to play a critical role within the crypto ecosystem, and will serve as an onramp for retail investors and institutions. Should the crypto market balloon back to a $2 trillion market, then COIN has the potential of offering some sizable returns.
