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
Canada’s Trudeau invokes Emergencies Act to include crypto transactions (Finbold)
Crypto Market Shakes Off Russian Invasion Fears - Crypto Market Cap is back above $2 trillion (Crypto Briefing)
Cardano, Polkadot ETPs Hit Frankfurt Stock Exchange (Blockworks)
Netflix Orders Documentary on the Bitfinex Saga (CoinMarketCap)
Build Finance DAO Suffers Governance Takeover Attack (Crypto Briefing)
U.S. Treasury Department Confirms Miners Exempt From IRS Reporting Rules (Crypto Briefing)
Mastercard Started a Crypto Consulting arm (BNN Bloomberg)
BTC Outlook
Bitcoin’s price action looks like it was drawn in a TA book as an example demonstrating an inverse head and shoulders. The idea is this pattern shows you where the buyers are and they came in at $40-$44k and again in the mid $30ks.
Now we are back at $44k on bullish news that World War 3 isn’t going to start tomorrow. The bulls are winning again and if this right shoulder in this pattern holds expect the price of BTC to go back to $50k, as we were suggesting last week. Bitcoin dominance has been rising as well with only a few altcoins holding up against BTC. If BTC does keep rising expect resistance near $50k.
Possible Course of Action (advice from last week still holds)
Dip buying is still suggested
If long, stay long and look for a retest of $50k
Could try shorting near $50k
The Bulls’ Defense:
Inverse head and shoulders
The Bears’ Prosecution:
Major resistance at $50k
ETH Outlook
ETH quickly turned around just under the 0.618 Fibonacci retracement we’ve been watching for over a month now. If you shorted at the resistance near $3300 like we suggested last week then hopefully you closed it when we hit $3k. The price turned around quickly last night and the midterm price action is starting to look bullish. Hitting $3300, returning to $3000 and bouncing was exactly the price action we were looking for to indicate a show of strength and continued upward momentum. Except more consolidation this week and more resistance near $3300. We are still trading with smaller size than usual and favoring Bitcoin over ETH.
Possible Course of Action
Scale into a long buying dips
Do nothing and wait for more consolidation
Open a short near resistance ($3.3k-$3.7k)
The Bulls’ Defense:
EIP-1559 has burned $5,743,609,078 (1,838,490 ETH) so far. Supply constraints should continue to have a positive impact on price.
$3k holding as support is 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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