Coiling Up

Mid-Week ChainPulse

Coiling Up

It’s a random walk.

Bouncing like a pinball.

In short spurts.

The direction feels unknown.

The golden thread its called,

It’s where one’s been and where one is.

The path is set, so instead of rushing, I think I’ll coil.

As we mentioned the past few days, accumulation continues.

We can only hope it lasts for weeks. Because the longer we stay in this range the more strength a breakout to the upside has.

It’s 3:00 UTC as I write the Mid-Week ChainPulse and price doesn’t seem to have the parabolic shape it had forming, continuing. While this is unfortunate, consider it an opportunity.

That’s because if price continues to trade in our current range and not make new all-time highs, it’ll only make the upside breakout that much stronger.

Simultaneously, that doesn’t mean price can’t break to the upside now.

That’s because the on-chain structure is slightly bullish.

The funding rates are getting high, which means more futures traders are bullish than spot traders.

The fuel in the market is steady and with fuel meter at 54 while the risk remains in check at 60.

This presents a situation where price isn’t necessarily hindered as it moves higher. Which means if it decides to make an all-time high, the environment isn’t slowing it down.

At the same time, the on-chain isn’t flashing bullishness yet. It’s more of a neutral to bullish type of reading.

The main factor is the 400 million USDt we talked about earlier this week.  So far, 200 million USDt have been used. And like we said on Monday, the way in which USDt is being issued on the blockchain isn’t anything to get excited about.

If the stimulus bill in the US gets formally approved and we witness some bullish on-chain flows then we’re at a scenario where the all-time high will likely be threatened.

For now, we will just wait for the market to tell us what it wants to do. Are we continuing sideways or is the next leg about to transpire. Stay tuned.

You Pulse on Crypto,