Market Report: 1st July 2019 — Subscribe to our newsletter.
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OUR TWO SATOSHIS
The daily view from our desk
As the UK experienced its first taste of summer over the weekend, other nations are coming to grips with global heating too — in California, the temperature was so high mussels were being cooked by the shore. In Cambridge, however, there were fears of another kind, as a man-eating snake was on the loose. And in Spain, one football club has gone to new lengths to promote their radical views, they have changed their name to Flat Earth FC.
“DO NOT SELL SUN IN JULY”
LET’S HOPE BITCOIN’S SEASONAL AFFECTIVE DISORDER ONLY ARRIVES IN AUGUST
The week has begun and bitcoin is hovering around $11k, having tested $10.6k overnight. So far, that marks a higher low than the one seen on Thursday. If such a level holds and bitcoin prints a higher high above $12.3k, that would confirm a bullish market structure for the week ahead. Otherwise, the current bias is one of caution, given the bearish way the week closed. Still, June’s close was good!
Nevertheless, as Alex Krüger puts it, there are many incentives for short sellers to push the price below $10k to hit the likely stop losses placed under that key level — just like what happened during last night’s bottom. That would be a 28% retrace from this year’s top. And, even if $9.6k (a key support level) breaks and the dump continues to $8.8k that would just be a regular +35% correction.
BUT MAKE SURE YOU USE SUNSCREEN
“THE CRYPTO WINTER — ENDING IN JULY, TO RECOMMENCE IN AUGUST”
Meanwhile, half of the year is behind us. So far, only 15 tokens have managed to pump more than BTC this year — but only two of them, BNB and LTC, are among the top projects. A recent musical video by the Crypto Bubble nicely illustratesthe feelings of all those who hold bags of the remaining thousands of alternative cryptoassets. So, if you’re new to this space, make sure that few outside the Netherlands seem interested in selling their precious corn for an “alt season”.
However, we have to admit DOGE, which previously anticipated strong alt pumps, is falling down to the area where it has historically bounced from. Anyway, to end on a high note, remember July will see many potentially bullish events. Bakkt’s testing starts on the 22nd and Liquid will hold a secondary sale of Gram, the token that powers Telegram’s TON network — which was responsible for the second largest ICO ever. Oh, and BitMEX’s funding is low again!
WHAT YOU CAN’T MISS TODAY
DON’T LEAVE FOR THE WEEKEND WHAT YOU SHOULD READ TODAY
▪ Joe McCann is a popular trader who recently started an excellent Telegram channel you should join. Know more about him in this podcast from The Block.
▪ Everyone is praising Yan Pritzker’s new book: Inventing Bitcoin. Nic Carter even argues “it’s the best from-scratch introduction to Bitcoin”. Details here.
▪ Skew Markets took the opportunity to review the first half of the year. Check their macro themes, projections, and market analysis here.
QUOTE OF THE DAY
WE’LL ALWAYS HAVE HODLERS
“It’s absolutely not immoral to short bitcoin. I and in fact if you have a one-sided market you’re doing yourself a disservice to the folks that actually want to acquire Bitcoin.”
- By Joe McCann