With Bitcoin ( BTC ), today's recent slump is not a surprise. We expect a gap in the CME contract (BTC1) to get filled near 8700. We also expect Bitcoin ( BTC ) to trade in a range between 9700 and 8700 for a while.

When a market makes a 40% rise, there has to be a consolidation phase. Preferably one that washes out weak longs who Googled Bitcoin ( BTC ) after the rally and then FOMO'd into a long position.

Bottom Line: Throughout 2019, we have not been a fan of chasing rallies. We do think crypto is transitioning into a phase where you can try to buy dips across the spectrum. The bet is that a challenge to the Dollar has started. The risk is that American authorities can push back hard.

DISCLOSURE: Token Metrics is a regular publication of information, analysis and commentary and does not provide individually tailored investment advice.  The Token Metrics team has invested and advised in many blockchain companies. A complete list of the team disclosures, advisory roles and current holdings can be viewed here: https://blog.tokenmetrics.com/disclosures/.