Technical Update

At ComiBlock, the foundation of our investment process is embedded with research as we attempt to identify high-quality assets trading at reasonable prices.

We are bottom-up, fundamental investors. When evaluating current or potential investments, we prioritize network growth, competitive advantages, and what we believe to be a margin of safety.

This fundamental approach is often contrasted with technical analysis or the study of charts and patterns as the primary tool for making investment decisions.

In our view, crypto-investing is not quite so much about Hodl and buying dips.

In the crypto market environment, where data is abundant, and investment edges can be fleeting, we believe some technical indicators can be essential in sketching a complete picture of the current landscape.

And, we recently added some tools of technical indicators at our disposal to complement the deep fundamental work that forms the backbone of our investment approach.

Stablecoin supply ratio, for instance. First, stablecoins play an important role in the cryptocurrency market as a fiat currency, like USD in the traditional market. Also, the relationship between BTC and Stablecoins is like a seesaw and provides valuable insight on who has more weight at the moment.

This indicator simply helps us compare the buying power status between BTC and Stablecoin.

  • High: Low Potential Buying Pressure — Bearish

High values mean low stablecoin supply compared to the market cap of BTC, indicating potential low buying pressure and possible price drop.

  • Low: High Potential Buying Pressure — Bullish

Low values mean high Stablecoin supply compared to the market cap of BTC, indicating potential buying pressure and possible price rise.

Other indicators like trading volume can help us understand which prior prices surfaced, enthusiastic buyers or sellers for an asset. And these are just a few of the technical indicators our team keeps in its toolbox as we refine, revise, and update our strategies.

But just as no single fundamental data suffices to form the basis of an investment decision, no single technical reading meets that criteria either. Each of the tools available to us helps us better manage the assets under our strategies, but no single indicator alone can offer directions. But the more detailed these guides become, the better chance we have of reaching our destination.

Have a great weekend

These are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security, and are not an offer or sale of a security. They are also not research reports and are not intended to serve as the basis for any investment decision.

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