Daily Brief - The “obvious” trade that everyone missed (Oct 8, 2021)
Last Friday we highlighted the appearance of the Golden Cross in Bitcoin charts; a technical indicator that signals potential upside once the 50D moving average of an asset rises above its 200D average.
TOGGLE published an insight about this indicator on the 24th of September. At the time, Bitcoin was priced at ~ $42,850.00 and TOGGLE’s analysis pegged the potential upside at 29%.
Fast forward to Wednesday evening, 12 days after the Golden Cross was observed and TOGGLE’s insight sent to Togglers: Bitcoin peaked at $55,757.11.
Other than the Golden Cross, some believe that this rally in the crypto market is driven by a few other reasons:
Amazon recently announced a job opening for a “digital currency and Blockchain product lead,” showing investors that a big shop like Amazon could be accepting cryptocurrencies very soon.
Twitter CEO Jack Dorsey is preaching Bitcoin on his social media
The crypto market is booming!!
Speaking of which, have you heard of Shiba Inu? Neither did we until this week.
It all started with this simple picture of Elon’s cute dog...
Which led to an unknown coin suddenly climbing the ranks of the largest cryptocurrencies in the world. The coin saw a ~250% rise in its price over the last week, totaling a whopping 25.7M% rise in its price over the last year. Yes, 25.7 million percent.
Other drivers of this rally in the price include large SHIB purchases by whales, ranging as high as one purchase of 6 trillion SHIB on September 30th. Ashwath Balakrishnan of Delphi Digital claims that meme coins tend to benefit whenever the market is in risk-on mode. As usual, the Reddit frenzy has inspired a lot of SHIB purchases by retail traders hoping to inflate the price by “holding on for dear life.”
As the equities market slowly starts to recover from a bad beating, the crypto market seems to be taking off. I guess when you’re known as “digital gold,” bad news can be good news.