Lark warns that Bitcoin holders should buckle up, as there are several factors creating uncertainty in the crypto market.
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He points out that while Nvidia beat earnings expectations, good news is now being interpreted as bad news for the market. This has led some analysts to predict a potential double top forming in the S&P 500.
Despite these concerns, Lark notes that not everyone is bearish. He mentions that Mike Wilson from Morgan Stanley, typically known for his pessimistic outlook, now believes the chances of a full-fledged stock market rout are low. However, Lark cautions that historical data shows August and September tend to be weak months for the markets.
Regarding Bitcoin specifically, Lark observes that it's currently in a ranging. He suggests that once Bitcoin breaks above $72,000, it could trigger a significant rally. However, he emphasizes that until then, the market remains choppy and many traders are getting "chopped up" trying to trade these swings.
Lark also touches on the broader crypto market, noting that Ethereum is currently underperforming compared to some other cryptocurrencies like Solana. He remains optimistic about Ethereum's long-term prospects but acknowledges it's currently the "hated asset" in the market.
In conclusion, Lark advises crypto holders to be prepared for potential volatility in the coming months, especially given the historical weakness in August and September. However, he remains cautiously optimistic about the potential for a strong rally later in the year, particularly if Bitcoin can break above key resistance levels.
