Santa Rally Cools
Disclaimer: Your capital is at risk. This is not investment advice.
ByteFolio Issue 89;
Welcome back to what seems to be a sudden halt in the Santa rally. ByteFolio surged over the holidays, only to give much back in recent days. We are comfortable with the tokens, but two are showing weakness and will be sold. There is also a new addition.
A few weeks ago, we pointed out how the space has seen improved breadth, but the new year has seen that reverse. There are still few downtrends, but the market is starting to cool. It’s not just crypto; the stockmarket has had a poor start to the year too.
Breadth in Crypto Tokens measured in USD
With Bitcoin dominance at 52% (CoinMarketCap), it remains strong. The impending US ETFs are a big deal and may underpin the bull market over the long term. It is my hope that they enable bitcoin to become a widely held asset.
But this is bad for tokens, as the alt season is a long way from where we would like it to be. I suspect we’ll have to wait until after halving before the surge returns.
Breadth in Crypto Tokens measured in BTC
It is also notable that the ByteTree Crypto Average (BCA) has dropped to a 4 from a 5 in USD. That may be nothing, but it is a good reason to slide back towards BTC again.
