A Special Crypto Christmas Edition: Reflecting on Past, Present, and Future with Material Indicators

Crypto Christmas: Analyzing the Bull Market and a Secret Pattern

In our annual Crypto Christmas special, we sat down with Keith Alan from Material Indicators to discuss the current state of the crypto market. Alan, known for his reliance on hard data, shared his insights on the bull market and potential twists investors should be prepared for.

Comparing Bearish Trends and the End of the Bear Market

Looking back at 2022 and 2023, Alan noted that it was undoubtedly a bear market, especially after the FTX crash. However, despite the unfavorable macroeconomic and geopolitical situations, Bitcoin started rallying in January 2023. Alan also mentioned a pattern of bid liquidity manipulation that influenced price movements. While there is still debate about whether this is a confirmed bull market or a series of distribution rallies, recent upticks in bid ladders and an increase in BTC wallets suggest a potential shift.

Bitcoin’s Price Action and Market Changes

The recent surge in Bitcoin’s price can be attributed to various factors, such as the upcoming Bitcoin spot ETF decision window and the US Federal Reserve hinting at looser policies. Alan also observed familiar patterns in the order book, which may have contributed to the price rise. However, he anticipates a correction before the ETF decision window or possibly after the Halving. He emphasized the need for continuous monitoring of order book and order flow data.

Sectors and Coins Benefiting from a Bull Run

While Alan primarily focuses on Bitcoin, he acknowledged opportunities in certain altcoins but cautioned about increased risks. He mentioned that AI and gaming sectors have been hot, with dominant narratives surrounding memes, DePin (Decentralized Physical Infrastructure Networks), and GambleFi. However, he advised caution when investing in meme projects due to their volatility. Solana’s recent price surge surprised Alan, considering the ongoing distribution of $SOL by FTX liquidators. He hopes to see more legitimate projects establishing themselves based on fundamentals.