SVET Markets Feedback (July 9, 2022)
Living in the crypto-bubble during the recession brings to us a blessed ignorance.
Fear-and-greed index, which is widely used by media commentators to sample crypto-market sentiments, has been steadily rising during the past week reaching to 24 today.
Whether prices cause sentiments to change or vise-versa has been a theme of countless academic researches for generations. Still, this issue remains unresolved. Now, the fact that BTC has gained almost 20% (while NASDAQ increased for only 8%) during the past six days might become a new argument of ‘price-first’ advocates.
Several forward-looking whales started to play a contrarian game loading up on BTC while its price remained under 20th. This short-term momentum was maintained by opportunistic traders, which shortly propelled BTC above 22500 on Friday. As soon as prices hit its first resistance zone laying between 20k and 30k most traders took their profit and get out of the market.
As a result many crypto-holders experienced an almost forgotten worm in their stomachs watching their portfolios in green for more than a couple of days. That delicious feeling was then translated into countless positive price projections and ‘not-bear-but-build’ articles which hit crypto-medias during the past week.
Only the existence of this ‘intimate API’ connecting our soles to our crypto-wallets might explain why when every day brings to us a new scenarios of how this world will end sooner rather than later and major macro-economic indicators continue to deteriorate (PMI fell to 53, new jobs openings decreased only slightly to 11.3 million and the unemployment rate stays at 3.6 percent) crypto-investors suddenly feel themselves fresh and rejuvenated.
However, as prices are likely to continue their gravitational retreat to old support levels, with 20k playing a role of the Maginot Line about to be overran by the former Reichswehr, crypto-investor sentiments will have no choice but to follow.
Be as it may, let’s hope against hope that there is still enough of a contrarian capital left out there to keep bringing more goodness into our stomachs for weeks to come.