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- Short-covering could trigger sustained market reversal
Short-covering could trigger sustained market reversal
Short-covering could trigger sustained market reversal
Friends and associates,
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Bitcoin’s increasingly narrow low volatility price range between $18K and $24K needs to come to an end eventually. We are biased towards the upside because research tells us that the worst is behind us in this crypto cycle. However, that does not imply that we are off to the races in a new extended bull-market yet.TDLR: Short-covering appears to have trigger an upside break of a declining volatility range and we expect it may continue into the mid-$20K’s.
Conclusions:
Crypto volatility is low, particularly vs. the S&P500 - synonymous with late bear markets/early bull markets
Leverage rose during the $18-24K BTC price range which suggests higher volatility is possible
Upside price breakout can trigger extended short covering, causing further price increases
Upside bias because of price capitulation, BTC miner capitulation and long-term holders supply dominance
Article: 5 reasons why bitcoin mining is worth the energy
An article I wrote was
TLDR
: The solution to environmental damage is to bring a halt to debt-fueled consumption, not to point a finger of blame at bitcoin.
A video of this article is available
A video of the tech central article is available on YouTube
Podcast: The history of power projection techniques: PoW vs. PoS
As a follow-up in the on-going Proof of Work - Proof of Stake debate, I found this discussion between Jason Lowery and Preston Pysh on the Investors Podcast valuable.
The history of power projection techniques: PoW vs. PoS
I enjoyed the description of power projection techniques through history and the various positives and negatives they provide in securing our property.
I am glad that Jason was balanced enough to describe the positives of proof of stake/rank/authority systems because there are certainly positives to these systems and they will continue to exist in the world for many years to come. As Jason says himself, many incredible human achievements have been achieved through proof of stake systems. It would be remiss to ignore the potential that ethereum under proof of stake could achieve similar outcomes.
That being said, to ignore the value of proof of work systems is incredibly short-sighted. It is actually irrational and idealistic because it ignores the state of the world where conflict and disorder are frequently occurring. As Jason explains, there is usually a cost to proof of work systems but this provides better assurances that decentralisation can be maintained, making the systems robust against disorder.
For those who want to get into the weeds of proof of work and proof of stake, I highly recommend listening to this episode.
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