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CHEAT SHEET
Support and resistance levels and our daily, weekly and monthly bias on BTC, ETH, OIL, ES, and NQ as well as our favorite altcoins.
Crypto News
Coinbase has officially launched its NFT marketplace (Bloomberg)
Morgan Stanley Says Crypto Could Become More Widely Used as Currency (CoinDesk)
Next Earth Launches ‘Metaverse as a Service,’ Plans $60M Venture Fund (CoinDesk)
Coinbase in Talks to Acquire Turkish Crypto Exchange BtcTurk for About $3.2B (CoinDesk)
Tesla’s Bitcoin Holdings Unchanged in Q1 (CoinDesk)
Goldman Sachs reportedly eyes FTX alliance with regulatory and public listing assistance (CoinTelegraph)
Binance limits services in Russia due to the EU’s 5th package of sanctions (CoinTelegraph)
Binance Changes Twitter Emoji After Original Resembled Swastika (Decrypt)
Framework Ventures to Invest Half of New $400 Million Fund in Blockchain Gaming (Decrypt)
Crypto Exchange Binance.US Secures Money Transmitter License in Puerto Rico (Blockworks)
Crypto Exchange Uniswap Hit With Class Action Lawsuit Alleging Wrongdoing (Blockworks)
BTC Outlook
The top of the downward channel BTC has been in in the mid-term is halfway between the long-term resistance line (in blue) and the long-term support line (in pink). The cheat sheet is currently biased bullish so we’d expect that the price would stall at the orange line and then eventually rise to $45k against near this blue resistance line. However, without knowing the Cheat Sheet bias there is some uncertainty here. Because of the channel’s resistance being halfway between the longer term levels we’d expect the price to stall here as sellers come back in to test the strength of this rally.
Watch closely in the coming days for the Cheat Sheet to flip neutral or bearish. This would indicate the rally is losing steam. Otherwise, we think $45k is highly probably as the local top of his rally.
Possible Course of Action
Do nothing wait for price to hold the down trend as support
Short this resistance at the bottom side of this channel
The Bulls’ Defense:
Price rejected break down and now trying to get back in channel
The Bears’ Prosecution:
Price meeting resistance at bottom of channel
ETH Outlook
Well, we got this one wrong last week. We noticed this bull flag forming and were expecting ETH/BTC to rise with BTC rising. However, this is not what we are seeing. BTC is now rallying and driving the ETH/BTC pair down. Even though ETH is rising in USD value it is falling a few percentage points against BTC in shorter time frames. We would expect ETH to find support at the bottom of this bull flag, but the way the trend has been, it’s possible that BTC continues to outperform ETH in the short term and this bull flag fails.
A trade that could work here is to be long BTC and then swap to ETH at the bottom of this flag or breakdowns under it expecting a mean reversion.
Possible Course of Action
Caution here as ETH looks weak against BTC
Long ETH bottom side of bull flag
The Bulls’ Defense:
EIP-1559 has burned $6,789,805,780 (2,142,996 ETH) so far. Supply constraints should continue to have a positive impact on price.
The Bears’ Prosecution:
Potential Bull Flag failure and breakdown (bart)
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Bottoms Up
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