Positioning for New Highs

Crypto Compass 79

“We ignore outlooks and forecasts… we’re lousy at it and we admit it … everyone else is lousy too, but most people won’t admit it.” - Martin Whitman

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• BTC is trading sideways near $43.5k after recording a 15.25% gain for holders this week. This are relief news after that the recent bear market for BTC, which was the most extended period spent below the 200-week Moving Average.

• We need to take advantage of the low risk environment that we remain. This position us for spot bids from the crucial support level at $43k, with the opportunity to seize the buy the dip opportunity following a rally led by institutional investors.

Figure 1: Bitcoin Risk Signal is a proprietary signal that gauges the amount of risk of a major drawdown in Bitcoin price.

• Projections of the Federal Reserve considering rate cuts in early 2024 have contributed to a significant rally in stocks and bonds, pushing the S&P 500 to a new high for 2023 and lowering 10-year Treasury yields closer to 4%.

• Despite the potential impact of U.S. November inflation data, with October's consumer price index unchanged, BTC has been rising and reached $44.49k on Tuesday, its highest level since April last year.

Figure 2: FED’s Interest Rates.