The Sharp Rallies that Occurred since June 17,2022 opens up to the possibility of a continued rejection and a sharper continuation to the downside with struggling resistances continuing for the next 3 months.
Despite crypto-linked stocks falling massively year to date (between 50–75% losses), we note that in a week’s time frame, some of these have counter-trend rallied between 22–54% within just a week’s time which opens up a possibility to short for another dump as we haven’t validated that the June bottoms are the actual evidential bottoms for crypto-markets in general.
$MARA $MSTR $RIOT $COIN $BITF $SI are showing chances for another selloff.
The Bearish Context of the Crypto-linked stocks:
1.) DEFI Systemic Risks Bitcoin plunged to the lowest in about 18 months after the freezing of withdrawals by the Celsius lending platform added to concern that systemic risk in the crypto ecosystem will accelerate the digital-asset market meltdown.
2.) Aggressive pace of Federal Reserve tightening of interest rates amid Persistent High Inflation
3.) Overall state of Cryptocurrency remains in primary decline to new lows.
$BITW (Top 10 Cryptocurrencies remain in a downtrend)
If Nasdaq goes new lows to 9000
We then expect bitcoin, ethereum to fall 30% or 40% lower, which means $MSTR can fall 50% or 60% lower. This is why we would continue advocating shorting MSTR COIN MARA SI in the short term as the risks remain to the downside.
If you do this right, you will be able to win simply by avoiding losing next 3 months. Recessions are always a good thing for the marketplace. It removes all the excesses and the money goes only to the highest quality assets which happens to actually still be building wealth in the top 2 crypto assets which is $BTC at 12,000 below and $ETH at 600 below. That also means if $COIN goes 30, we’ll obviously be looking on to capitalize that.
My 2023 Shopping List
$TQQQ at 10
$TSLA at 400–500 areas.
Howard Marks said if you wish to outperform the market, you have to expose yourself to being wrong, and it is far better in my view to be wrong for not commit to the long side in a bear market too early, than to commit early and too soon, only to get my savings get halved next 3 months.
- Wait for your perfect pitch and sit on your hands.