As noted in the Wyckoff labeling, either the Back Up to the Edge of the Creek (BUEC) completed at the lows of last week’s drop or it has a bit further to go. I’m leaning toward it needing to complete one more drop lower into the blue daily demand structure in the 38500-39500 range. However, before it does, I believe we may see it rally to the blue supply structure in the 48200-48600 range.
Considering the sobering macro possibilities mentioned in the previous section, I would expect this to be the final run up before an extended bear market for cryptos (if those possibilities play out). For traders, this isn’t an issue because we don’t care about price direction, only that price moves. Money is to be made in advancing and declining markets.
Might all of this coincide to a top for NFTs and Defi? For a quick explainer of NFTs check out the Verge’s article
and CNet’s article
. I’ll admit, I don’t know what the long-term viability of NFTs is, but I have been late to the party before on new technology. That said, I do believe whatever the long-term viability is, the current hype does appear overly-exuberant and very frothy. If Cointelegraph is right and DeFi needs NFTs and NFTs need DeFi
then the frothiness in NFTs may mark a top which would bleed over into DeFi and could coincide with an overall market top.
Adding to all of this is the SEC’s apparent plan to attempt to regulate the heck out of the industry. Max Dilendorf at Dilendorf Law Firm PLLC lays out some great thoughts
about the possibility of NFTs being treated as securities. And while the initial reaction of most crypto traders/investors is to argue about how antiquated the SEC and laws pertaining to securities are, the fact remains that the law is what it is and will be applied as the SEC believes it should be. So it behooves traders and investors to really pay attention and try to understand the arguments rather than stand around posturing and arguing about how unfair they believe it is.