Everyone is being lulled to sleep by the crypto markets right now. Bitcoin has been sideways since November 18th, and most of the major altcoins are just as boring.
But that can only last for so long.
In today’s issue, I’ll share exactly what I’m watching for from the DXY, BTC, ETH, VET, and kitty.
Let’s get it!
Everything is sideways right now. It’s one of those times when it’s easy to fall asleep watching the price go sideways on your monitor.
However, big moves usually happen when least expected.
So although Bitcoin may be boring now, something tells me that’s about to change. Of course, the question is, will we see a move higher or lower?
It may be tempting to guess, but there’s no edge in that. It’s better to have a plan for either scenario so you can execute quickly when the time comes.
That’s what today’s issue is about – constructing a plan and then having the patience to wait for the market to come to you.
US Dollar Index (DXY)
The USD is mostly sideways right now, which isn’t helping cryptos any.
However, the intraday head and shoulders pattern I’ve discussed recently is still very much in play. That said, the DXY needs to close below the 95.80 area to confirm the breakdown.
Remember, we want the DXY to weaken to give cryptos like Bitcoin room to strengthen. It’s going to be difficult for BTC to gain any meaningful ground while the US dollar is this strong.
Bitcoin looks relatively weak today after a failed intraday breakout above $58,000 on Wednesday.
However, it’s not all doom and gloom because there’s a lot of support just below the current price at $55,000.
There’s also a CME gap at $54,500. These gaps don’t always fill, but when they do, they can serve as reversal points in the market.
Alternatively, a daily close above $58,000 would open up $60,000 and potentially $63,000.
ETH is bouncing from the November trend line that I’ve mentioned a few times recently. That support area is around $4,430.
We’ll see if this area holds up in the coming days. Of course, it all depends on where BTC goes.
As long as ETH is above this trend line on a daily closing basis, I like it higher. I also still think the $6,000 measured objective is in play while above $3,950.
Alternatively, a daily close below $4,430 would signal a bearish move, potentially toward $4,000.
VET is sitting on support today at $0.113. That’s the location of the July trend line.
However, this support area extends as low as $0.105. That’s the descending trend line from the all-time high.
As long as VETUSDT is above the $0.10 – $0.11 area, the bullish structure is intact.
That said, VET needs to get above $0.123 on a daily closing basis to flip that back to support. Do that, and we’ll likely see a move back to $0.15.
Kitty Inu (KITTYUSD)
Kitty is a P2E game token that I first discussed in late October. Since then, it’s up about 200%.
However, this project is just getting started. With a beta launch for the game slated for January 2022, I think big things are in store for kitty.
The market cap is also still relatively low. The fully-diluted cap is $150m, but the actual market cap is much lower around $80m.
On top of that, the chart has been coiling since early November, and the BSC bridge is set to launch within the next few days. My guess is we see a breakout on or before December 6th.
As always, none of this is financial advice. I’ve been invested in kitty since late October.