Bounce With It
ETH and BTC bounce back quickly after Tuesdays sell off
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
Crypto exchange Enclave launches confidential trading platform for institutions (The Block)
Coinbase backs lawsuit aimed at Treasury’s Tornado Cash sanctions (The Block)
Merge: A look at the miner-led Ethereum fork that might happen (The Block)
Ethereum Merge May Not Be Immediately Deflationary, Crypto Trading Firm QCP Says (CoinDesk)
Crypto Doesn't Need More Guidance, SEC Chair Gensler Says (CoinDesk)
Goldman: Coinbase to Benefit Near-Term from Staking Revenues After Ethereum Merge (CoinDesk)
Community calls out bots spamming crypto Twitter threads (CoinTelegraph)
40 State Regulators are Opening Celsius’ Books in Search of Fraud (Blockworks)
Web3 Watch: GameStop Partners with FTX and Sorare Creates NBA Fantasy Game (Blockworks)
Voyager To Liquidate Assets at Auction (Blockworks)
Coinbase’s Stablecoin Proposal Expected to Earn MakerDAO $24M Annually (Decrypt)
‘She Will’ Director Launches NFT in Support of End Violence Against Women (Decrypt)
BTC Outlook
Finally! Something worth writing about happened between Tuesday and now. The stock market reopened this Tuesday after a holiday weekend and there was a huge sell off that followed. Almost every crypto fell on Tuesday with Bitcoin breaking back down below $19k. However, just as quickly as the selling came it went. Yesterday crypto rallied and many cryptos took back Tuesday’s loses completely.
In Bitcoin’s attempt to rally back the price stalled out at $19,500. This is exactly the level we’ve been suggesting you watch for the past couple weeks as a sign to be bearish. So, today Bitcoin is hanging out just shy of $19,500 and appears to be forming a Cup and Handle pattern. If the price breaks to the upside of this handle expect another attempt to break back above $19,500. Retaking $19,500 as support would confirm that Tuesday’s dip was a higher low for the year and a show of strength. This could mean Bitcoin having a mid term rally back into the mid $20ks.
Possible Course of Action
Long if daily candle closes above $19.5k
Short here expecting a retest of the yearly lows
Wait for confirmation of a higher low
The Bulls’ Defense:
Higher low possible
The Bears’ Prosecution:
Bear Flag sell off playing out
A Closer Look
This section will be focused on taking a closer look on what Hal thinks is important to watch in the coming week.
The ETH merge is only a week away. Join us in discord if you’d like to discuss the coming week in the markets in more detail.
Keep reading with a 7-day free trial
Subscribe to Foot Guns to keep reading this post and get 7 days of free access to the full post archives.