Market Moving - Resurgence Gives Bulls Hope

Monday morning in Asia has created a 'max bidding' environment where everything from equity futures, commodities and of course crypto has made a substantial run higher.

The information contained here is for general information only. It should not be taken as constituting financial advice. Stormrake is not a financial adviser. You should consider seeking independent financial advice prior to making any personal investments.

Up Up and Away

A snapshot of crypto assets heading higher during the Monday pump

Although green candles are a welcome sight, bulls should be slightly sceptical on whether this is going to be sustained run for the week ahead. We're not only coming into huge overhead resistance but this move is also occurring in one of the most illiquid periods in the trading week. For any sort of sustained rally to occur, we need to see both Europe and the US continue carrying the 'max bidding' mentality. The good news is we have no macro economic events to worry about this week, other than the ECB interest rate announcement set to occur on Thursday at 11:25pm AEDT. This means we have a green light to continue heading higher as there are no expectations that can weigh down bullish momentum.

Altcoin Watch: Optimism

As we're closely watching and monitoring the L2 wars on Ethereum, whilst preparing for a potential Arbitrum airdrop, it's important to keep an eye on Optimism (OP). This will provide us with an accurate sentiment check and risk appetite for L2 tokens, as OP was the L2 to have the most recent airdrop. Worth noting is that OP has broken out of a multi-month downtrend set back in early August. For a sustained run higher, we would like to see it clear the $1 USD key technical and psychological level, if this happens we can anticipate a retest of $1.10.

To the downside, if we lose 0.73 then the next key level of support comes in at 0.65.

BTC/USD key levels

Bitcoin on a lower timeframe really puts the bulls euphoria back to reality. Despite the strength of the recent rally, all we have managed to do is head back to the magnet of $19,560 USD, a level we have highlighted well over a dozen times in recent weeks. It's decision time for the largest cryptocurrency. If we have a strong bullish close well above the $19,560 level by close of trading today, we can anticipate a huge run up to $22,794. A failure to reclaim $19,560 and heading below this key level, can have us retesting the recent swing low of $18,549.

ETH/USD key levels

Ethereum is currently trading above its key level of $1,333 USD and is likely on a path to retest $1,400 and make a push towards $1,472. To the downside, if we track back below $1,333 then a sharp move back down to $1,241 can't be ruled out. Worth noting is that Ethereum is nearly deflationary post merge, with supply growth up only 0.08% over the last 38 days. The reduction in supply should not be discounted too heavily, this can cause a quick acceleration in price once the impact is felt.

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Stormrake is not a financial adviser and does not provide financial product advice. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Stormrake is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by this newsletter.

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