Don’t miss last weeks podcast where we discuss the dramatic events unfolding at Wonderland finance.
CHEAT SHEET
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
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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