Hey everyone,
I’m on vacation out of state so I’ll be dropping in my market alert through text instead of video today.
Over the last week, the downtrend in crypto continued and created a new short-term bottom. The fear gauge is still on “extreme fear” and we may not have seen the end of the crypto crash just yet. It’s very possible we could have hit a final bottom since it’s within the range of where it’s possible to do so. The Fed is ending Quantitative Tightening (QT) on December 1st which is where they stop draining liquidity from the financial system. The Fed will also share on December 10th if they are cutting rates by another 0.25% again. These are both bullish for risk assets but who knows if it’ll positively impact the crypto market.
BTC’s crash is likely close to being over. Wave C finishes the crash cycle before moving into wave 1 once again. If we haven’t seen the final bottom yet, I think that $75K is a good target where I’ve drawn in the black horizontal line before potentially going higher. When BTC falls, it usually takes the rest of the crypto market down with it so it’s good to watch where it moves.
The crypto market without BTC and ETH (TOTAL3) still has it’s uptrend line intact. If we don’t create a new low and I have my wave counts correct, the stage is set for a potential wave 3 higher in altcoins.
Two new XRP ETF’s went live on the stock market this past week. These ETF’s allow stock market investors to have exposure to XRP. The total amount of money that went into the ETF’s to buy XRP currently sits at ~$630M and it’s only been roughly 2 weeks since these products have hit the market and this was during a time when crypto is in “extreme fear” sentiment. What would happen to those inflows if crypto turned bullish? These products could be key to XRP soaring to new highs.
As I look through the other positions, everything else is roughly the same. Some posted new recent lows but many positions have bounced back slightly higher. I’ll give a normal update next week as I’ll be back in town.
Have a blessed Thanksgiving everyone!
Ron
