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  • Writer's pictureDaniel Shapiro

Market Report #3

Abstraction Capital’s Market Updates provide insights into the crypto market and strategy performance. Please enjoy Market Update #3.


High Time Frame

The high time frame compression around $70k continues for Bitcoin. ETF flows have picked up a little, but beyond that there hasn’t been any significant developments over the past week for Bitcoin. The macro trend remains to the upside.


Medium Time Frame

Global liquidity has remained flat over the past week, with the momentum still shifting towards the upside. Stablecoin flows have been positive over the last week as well. $72k remains the top of the range, and I would expect it difficult for that to break on the first go. The 20-week moving average is continuing to rise, elevating the floor of any short term drops in price. Currently at $60100, I believe any drops to $60k would be a fantastic buy – I doubt the market is generous to give a pullback that far.


Short Term Developments

Bitcoin had a nice start to the week now trading above both the weekly and monthly VWAPs. Equal highs of $72k as well as daily Bollinger bands present resistance above. There is currently a lot of dispersion in the alt market, with no single narrative clearly outperforming. Smaller cap on-chain memes have been doing well, indicating that things might be little frothy. ETH volatility has been decreasing as price has been trading in a 2.50% range now for almost a week. The longer this continues the more likely we have a sharp, volatile move.

Cross-Asset Momentum Strategy

The strategy is currently long ETH, LINK, and UNI.

1 Week Performance

-7.26%

Performance since Market Report #1

1.10%



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