FG Cheat Sheet 012522

Where is the bottom?

Don’t miss this weeks podcast where we discuss the declining markets, russia, and cryptos chance of a comeback.

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CHEAT SHEET

Pink = Bearish, Blue = Bullish, Orange = Neutral since the date given in “Bias Since”. Support levels are where the price could bounce when falling and Resistance levels are where the price could stop if rising. The black outlined boxes show the price at the time of cheat sheet creation. You can find more details on how to read the cheat sheet here.

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What We Are Watching

We further breakdown our case for these cryptos here : What We Are Watching

Are you buying these tokens? Did you read our guide on how to buy them on Sushiswap and Uniswap? Got questions? Leave them in the comments.

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Crypto News

• Solidly: preparation for launch

• Here’s Why Bitcoin Needs Proof-Of-Work and NOT Proof-Of-Stake

• El Salvador Bought Yet Another Dip, Total Reserve Reaches 1801 Bitcoins

• Vitalik Buterin talks Ethereum switch to Proof of Stake

• Reducing Ethereum Gas Fee Relies on Sharding and Layer2 Rather than the Transition to PoS

• How Meta (And Other Big Tech) Could Ruin NFTs For Everyone

• The great renaming: what happened to Eth2?

• Ethereum Foundation Kills 'ETH 2.0' in Favor of 'Consensus Layer' Rebrand

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litquidity @litcapital

this is annoying

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BTC Outlook

It’s just one candle, but yesterday was an important day. Tensions around Russia/Ukraine conflict have driven down US equities markets and crypto was dragged down with it. Monday saw a massive intra-day swing in the BTC price. This now looks like an outside reversal. This can often indicate a major trend change. However, US Equities futures are down over -1% overnight again so there could be more downward pressure on BTC still.

We are thinking it’s time to thinking about buying the dip.

Possible Course of Action

• Scale into a long here buying any dips

• If long, stay long and look for a retest of $40k

• Could try shorting near $40k

The Bulls’ Defense:

• An outside reversal can indicate a change in midterm price direction

The Bears’ Prosecution:

• Russia/Ukraine conflict dragging down global markets

Earn Interest on your Bitcoin

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ETH Outlook

ETH’s price action from Monday does not show the same conviction that BTC does. Monday’s candle was not able to get higher than Sunday’s candle and it closed lower. This is not indicating a turn around in the same way BTC’s price has. ETH has consistently been correlated with BTC so if BTC goes up ETH will certainly follow. It is just looking like BTC will outperform ETH in the short term.

Possible Course of Action

• Do nothing wait for continued consolidation

• Could look to open a long here betting on a return to $3000

• We wouldn’t recommend shorting since the price has already fallen so much

The Bulls’ Defense:

• EIP-1559 has burned $3,997,560,244 (1,638,038 ETH) so far. Supply constraints should continue to have a positive impact on price.

The Bears’ Prosecution:

• Russia/Ukraine conflict dragging down global markets

• ETH is over priced compared to it’s competing chains (e.g. FTM)

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