We’re 20,000 Meters High

July 2, 2020
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The view is different from the airplane.

You can see the snake-like bends and former dried out sections of the river. It’s a picturesque reminder that nothing remains the same. Even at the edge of a river, an area a contractor might look to build a cabin on, won’t stay in any one place for long.

It’s perspective. Navigators more than anybody understand its importance. Because at 20,000 meters high all of a sudden the river emptying into the ocean comes into view. As well as another river in the distance.

With this perspective the navigator knows where water can be found, where a coastline exists, and how far they can travel before reaching the next water source. 

They are able to confidently make decisions understanding their place in the terrain.

It’s this lesson that explains why we use to underpin the importance of our Jarvis Index. It helps us to know where we are, where we are going, and improve our decision making between those two points.

It’s our 20,000 meter high map of bitcoin. And what we’re seeing is a new trend unfolding. One that’s about to take the market by surprise.

 

Our Rand McNally Map

The Jarvis Index is made up of more than ten million data points. The factors going into it include about a dozen on-chain statistics, miner statistics, and even a handful of metrics like network value transaction (NVT) ratio. Think of it as a smorgesborge of crypto data getting crammed together into a small black box… And out the other end sense comes out.

What’s important for us is the data gets pushed into Jarvis as the data points are created. We aren’t waiting for the end of the month to come around to check out our magic eight ball.

When the data comes out the other end of our Jarvis system, we get a nice clean reading. Here’s what it looks like:

You may have noticed we unveiled it in our Market Outlook report. For those that haven’t looked at the report yet, go check it out here. You can find a run down on the index and the stablecoin version of the index in the report. 

As you can see in the index chart, we are very close to zero. Could it go lower? Sure, but the probability of that happening is getting lower and lower by the day. What does it mean for you? 

There’s a quote from the book, The Hunger Games, that serves as a nice reminder for trading, “… may the odds ever be in your favor.” The Jarvis Index is telling us the odds price goes up is a lot higher than the odds that price goes down over the next year.

So whether you are trading the spot market or with leverage, looking for long entries gives you higher odds than finding a short entry.

 

The Halving Data is Coming in

The last part and probably the most important considering the times is the data from the halving is beginning to show up.

It’s been almost two months since the new issuance of bitcoin was cut in half. It’s an event that takes place every four years with bitcoin. When it happens, there tends to be a lag effect. What I mean by this is the effect the halving has on price takes time. And in this way it’s much like a train… A train doesn’t just start rolling at 100 kilometers per hour right away. It takes time.

But over time the momentum of the train can’t be stopped. It’s why you don’t get in the way of a moving train. Instead, it’s better to just find a station to get on.

Because one thing is for sure right now, the market is sleeping on the effect the halving will have on price. It was a big thing two months ago. But now, it seems to be a distance memory for most traders. 

It’s one of the signals we are starting to see with Jarvis data and the Index. So if you’re looking to trade in the coming weeks, consider finding a way to get on the train with timely long entries. It’s a way to trade with the odds in your favor.

Until next time, we’re on the scent…

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Click here to read our latest Market Outlook report. 

About Jarvis Labs: We are a team of passionate professionals with experience in data science, software engineering, economics and trading who came together to develop Jarvis, an artificial intelligence / machine learning software that tracks market movers. We’ve since gone on to become a one stop shop for crypto traders by building new tools, metrics, and platforms every day. Stop by Jarvis Labs to learn more and subscribe to our newsletter to learn what market mover is driving the market today.