Bitcoin eyes new highs, but how long will they take?
Crypto News

Continuation Continues


The news from Planet Ruby—Thursday, March 28, 2024

  • Signal: Trend
  • Noise: Corrections

A day early due to the Easter holiday, here's our regular weekly crypto news and market roundup.

TradFi Leads The Way

As the outlook for interest rates becomes more dovish, the dollar looks like it's in the process of rolling over. We are seeing lower highs on the DXY from the peak back in September 2022. Given the interest rate environment, we'd expect to see further weakness and continuation lower, though we're still awaiting confirmation.

DXY chart (TradingView)
The dollar appears to be in a macro downtrend.

That would be good for risk assets, which have already experienced an exceptional rally over recent months. Major markets such as the S&P 500, Dow Jones, Nasdaq, Japan's Nikkei, and the UK's FTSE 100, are all at or near all-time highs, along with gold.

Bitcoin Recovers

Bitcoin has had a turbulent couple of weeks, and is now showing some extremely bullish price action—possibly too bullish.

The correction started on March 14, when bitcoin hit a new high at $73,800. It subsequently dipped, putting in a low of $60,800 just six days later, on March 20. That week was also accompanied by heavy ETF selling, with five straight days of outflows.

The bleeding abruptly stopped at the end of the week, and on Monday, bitcoin pushed rapidly higher, through the old all-time high of $69,000 and back above $70k. It recovered $10,000 in only five days, showing incredible strength.

There's support/resistance around $71,000, and of course the old $69k top. Lower down, there's key support at $60k, which was effectively just retested and held. Right now, bitcoin is trading in that gap, maintaining the $69k level but awaiting further impetus to the upside.

Assuming continuation, we'd expect $74k to fall fast, and potentially $80k to come into play. MSTR (essentially leveraged bitcoin at this point) is on a tear, fast closing in on $2,000, and billions of dollars are trapped in unprofitable shorts. Very soon there is likely to be a reckoning.

Meanwhile, the altcoin market cap is also increasing fast. If BTC pauses, we're potentially looking at a breakout and alts season kicking off in earnest. That would be an exciting development, though it's possible it wouldn't be quite like previous alts seasons.

Away from the markets, Justice Mellor's oral ruling against Craig Wright now takes on the force of a final written statement. Shocked though some members of the BSV community will be, Mellor did not utterly contradict himself and is still confident that Craig is not Satoshi.

What's New In The SKALEVERSE?

DMAIL, a decentralized messaging protocol, is coming to SKALE! DMAIL will leverage SKALE's zero gas fee infrastructure to offer Web3 messaging with AI-powered features, including encrypted emails, spam filtering, and personalized experiences, all validated by the blockchain and with zero transaction costs.

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