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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

• Wormhole Hack: Over $320M worth of ETH was drained from Solana

• IRS will not tax unsold staked cryptocurrencies

• Bored Ape Yacht Club startup, Yuga Labs, rumored to be discussing financing with a16z that would give it a $5Bn valuation

• GameStop partnered with NFT marketplace Immutable X

• Stocktwits launched a crypto trading platform

• Over $69M worth of crypto was donated in 2021, led by ETH

• Ubisoft has agreed to enter the Hedera network

• Khabib is now in the metaverse

• Zuckerberg Stablecoin Project Diem Officially Shuts Down

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February 2nd 2022

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BTC Outlook

The BTC price was rejected nearly perfectly on this downward trend line. That does not automatically mean the price will start going back down again. In fact, sideways ranging is looking to be the most likely outcome. It’s certainly possible that the price continues to follow this trendline downward and even tests $30k or wicks down to $28k. However, volatility has been tightening so expect an eventual breakout or breakdown in the next 6-10 days as BTC retests this downward trend line.

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

• Scale into a long here buying any dips

• Retest of $40k was rejected

• If you shorted at $40k like we suggested on Tuesday you should be looking for an exit in the coming day(s)

The Bulls’ Defense:

• Price is consolidating and volatility is reducing. Price will break down trend eventually

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?

• Price rejected at downward trend line. Most downside to come.

ETH Outlook

ETH’s price action is looking slightly more bullish than BTC. You can see that the price is retesting the breakout level around $2600. If the price stays above $2500 in the coming days this would be a higher low and a show of strength. This would most likely lead to a retest of $3k-$3.3k as we pointed out in Tuesday’s newsletter.

One thing to note is crypto news over the past few days has been full of bullish stories and the price is not reacting in a big way. This could be a sign that more downside is needed before a local bottom is in.

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)

• Just like with BTC dip buying will probably work for the next few weeks

The Bulls’ Defense:

• EIP-1559 has burned $4,552,417,333 (1,747,958 ETH) so far. Supply constraints should continue to have a positive impact on price.

• Possible lower high forming

The Bears’ Prosecution:

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

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