FG Cheat Sheet 021022
The morning dip
Don’t miss this weeks podcast where Wasabi and Hal the upcoming FGNEWS airdrop, if the bottom is in and an update on the Wonderland situation.
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
El Salvador plans to issue its first Bitcoin bond in March (The Block)
Russia to recognize crypto as a form of currency (Blockworks)
Forbes announced a $200M strategic investment from Binance (Forbes)
Samsung’s S22 smartphone will have a crypto wallet (BeInCrypto)
Gucci bought land in The Sandbox (Bankless Times)
McDonalds files 12 trademarks for McMetaverse restaurants (Coin Telegraph)
Over $14M lost in DEGO Finance and Cocos-BCX hack … or rug (Crypto Briefing)
BBC crypto documentary pulled from air last minute (The Guardian)
BlackRock planning to offer crypto trading (Coin Desk)
BTC Outlook
BTC price is consolidating after being unable to rise above $46k. The daily volatility this week has been picking up and now we are seeing a retest of the neckline of this break out. The price action still looks bullish for a likely retest of $50k. This does not mean that the price does not spend more time consolidating at these levels. Buying the dips is still likely a profitable strategy until we are closer to $48k-$50k.
Altcoins were rising faster than Bitcoin yesterday and now are selling off with a higher percentage lose. We expect altcoin/BTC pairs to continue to sell off. There of course are always exceptions.
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 $50k
Could try shorting near $50k
The Bulls’ Defense:
Holding $42k-$43k would be a show of strength and more upside is expected
The Bears’ Prosecution:
Major resistance at $50k
ETH Outlook
Wow, we really made this one easy for you. Last week we suggested buying ETH at $2600 with the intention of selling or at least lightning up between $3000 and $3300. We think this is just a moment of consolidation and ETH will retest $3750, but we still think this is a good time to lighten up. It’s entirely possible that this is the end of this short term rally and we see another few weeks of downward/sidewise price movement.
Expect ETH to trade within the $3000 - $3300 range in the coming week(s).
Possible Course of Action
Scale out of position if long since $2600
Do nothing and wait for more consolidation
Open a short near resistance ($3.3k-$3.7k)
The Bulls’ Defense:
EIP-1559 has burned $5,685,098,284 (1,808,057 ETH) so far. Supply constraints should continue to have a positive impact on price.
$3k holding as support would be a show of strength and more upside is expected
The Bears’ Prosecution:
ETH price will stall out between $3.3k-$3.7k and multi-month weakness continues
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