550 Million ETH.USDT Purchased by Whales Gives Hope to Bulls
550 million ETH.USDT was purchased on Binance today by the bulls. The money flow index line (green) is in the top zone.
Wyckoff Patterns and the MFI
It's unclear if we are in a Wyckoff structure still.
If we are, this is a bull trap. The best Wyckoff strategy for Going Long is when the MFI line is at the bottom zone, not the top zone.
Wyckoff bearish reversals happen at the top zone, not the bottom.
We were last on the bottom of the MFI chart on May 29th. That was the best day to close out shorts and position long. We can revisit the bottom this week.
Stochastic Cycles
The bulls are in control of the 12-Hour cycle indicator for now:
It's angled upward, which keeps ETH.USDT in the bullish zone. This can reverse intraday. Twelve hours ago, the cycle was angled downward.
Inflation
Inflation fears in the United States are subsiding, so the bulls are hoping to rescue the damaged bull rally. Bears are only winning quick victories because the velocity of money is still low. That means people are still HODLing money, whether cash or crypto.
As long as companies are sitting on cash, the velocity of money won't increase.
This is why inflation is so important. It would change the dynamics. HODLing money only happens during deflationary periods.
M2V chart showing that we are still in a 20-year deflationary period:
The velocity of money has been decreasing for the past 20 years. No wonder the religion of HODLing seems like eternal salvation. Few realize that the past 20 years have been a deflationary regime. That goes against the gospel of HODL, which preaches that people HODL Bitcoin and Ethereum during inflationary regimes.
Wyckoff Patterns and the MFI
It's unclear if we are in a Wyckoff structure still.
If we are, this is a bull trap. The best Wyckoff strategy for Going Long is when the MFI line is at the bottom zone, not the top zone.
Wyckoff bearish reversals happen at the top zone, not the bottom.
We were last on the bottom of the MFI chart on May 29th. That was the best day to close out shorts and position long. We can revisit the bottom this week.
Stochastic Cycles
The bulls are in control of the 12-Hour cycle indicator for now:
It's angled upward, which keeps ETH.USDT in the bullish zone. This can reverse intraday. Twelve hours ago, the cycle was angled downward.
Inflation
Inflation fears in the United States are subsiding, so the bulls are hoping to rescue the damaged bull rally. Bears are only winning quick victories because the velocity of money is still low. That means people are still HODLing money, whether cash or crypto.
As long as companies are sitting on cash, the velocity of money won't increase.
This is why inflation is so important. It would change the dynamics. HODLing money only happens during deflationary periods.
M2V chart showing that we are still in a 20-year deflationary period:
The velocity of money has been decreasing for the past 20 years. No wonder the religion of HODLing seems like eternal salvation. Few realize that the past 20 years have been a deflationary regime. That goes against the gospel of HODL, which preaches that people HODL Bitcoin and Ethereum during inflationary regimes.
