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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.

Crypto News

• Metamorphosis: Transforming Bribes into BTRFLYs

• More on Solidly: Ren partners with Solidex

• Trezor fixed a vulnerability in its hardware wallets after a man hacked into one

• Leave Kanye out of your NFT ideas … for now

• Michael Saylor / MicroStrategy bought 660BTC for $25m

• Russians own $200Bn+ worth of BTC

• India is launching a digital currency and will charge 30% tax on crypto income

• Last week, IMF asked El Salvador to drop BTC as legal tender - this was their response

• Third largest recording company, Warner Music Group, partnered with NFT platform OneOf

• Terra proposed a sports partnership to its Community Fund

zachxbt.eth @zachxbt

The proposal to unwind Wonderland has failed. Sifu is officially out and has started sending ETH to Tornado. https://t.co/isAkraKNGG

PeckShieldAlert @PeckShieldAlert

https://t.co/3JKZeYSU8P https://t.co/Vfk0HFtdsv

February 1st 2022

40 Retweets311 Likes

BTC Outlook

Bitcoin is back at the top end of this declining range. If you read the news above just about any bullish thing you can imagine seems to have happened today. Saylor bought, Russia admits to holding large bags, and India put forward somewhat reasonable tax laws for crypto. If the price can’t buck the trend here then certainly expect $30k to be retested. The safe strategy would be to buy when the price goes above this trend line and then confirms a retest by making a higher low above the line.

This is could be a decent place to short (or $40k), but I would watch that short like a hawk with a somewhat tight stop.

Possible Course of Action (advice from last week still holds)

• 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:

• The outside reversal we pointed out has now played about and we have a short term change in the direction of price action

The Bears’ Prosecution:

• If buyers don’t come in on string of bullish news then what else could spark a turn around at these levels?

ETH Outlook

ETH’s price action is looking good. If we include that upward wick in the middle it was a W bottom, include the bottom wick and it was an inverse head and shoulders. However, you want to call it that looks like a temporary bottom to me. ETH will probably retrace to these 0.618 and 0.5 Fibonacci levels. These will now act as points of resistance so if you bought the bottom here look to lighten up around $3k and $3.3k.

ETH buyers are coming back simply because BTC stopped going down. In 2021 many small players were pushed out of ETH because of the high gas costs. This does not mean ETH adoption wont continue by larger players. As much as we are frustrated by the high gas costs we expect ETH’s popularity to continue to rise along side cheaper L1s and L2s.

If ETH makes it to $3k/$3.3k you could try a short looking for a short term pullback.

Possible Course of Action

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

• Open a short near resistance ($3k, $3.3k)

The Bulls’ Defense:

• EIP-1559 has burned $4,830,860,198 (1,722,311 ETH) so far. Supply constraints should continue to have a positive impact on price.

• Short term bottom has formed

The Bears’ Prosecution:

• ETH price will stall out at $3k and weakness continues

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