Another Pass Through $40k
Another Pass Through $40k
The whip saw continues
Don’t miss last weeks podcast. Hal, Boomer discuss what’s going on with oil, commodities and how it may impact Crypto.
We are sending out the February FGNEWS token airdrop today. Look out for more airdrop offers.
CHEAT SHEET
The price has been moving around so much it seems to be creating noise in the daily bias on the cheat sheet. We flipped bearish the day before the price ran up, and now flipping bullish on a huge down move. It could be wise to trade less here and focus on the weekly and monthly time frames. Alternatively, if you are paying close attention join us in our Discord where we are more closely following the price action. For example, Hal sold yesterday and put in small buys this morning.
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
South Korea Elects Pro-Crypto President (Decrypt)
BitMEX Co-Founder Pleads Guilty to Violating Bank Secrecy Act (Decrypt)
Dubai Establishes New Crypto Laws (CryptoBriefing)
CZ: Binance to Expand Into “Every Economic Sector” (CryptoBriefing)
Russian Parliament working group: There should be 'mechanisms to control crypto transactions' (CoinTelegraph)
LimeWire makes a comeback after a decade with an NFT marketplace (CoinTelegraph)
First DOGE, Now ‘Meataverse’: Slim Jim Trademark Filings Reveal Metaverse Plans (CoinDesk)
Fantom-Based Algo Protocol Fantasm Exploited for $2.6M (CoinDesk)
‘Buying The Dip’: Third Largest Bitcoin Whale Adds To Position With A $29 Million BTC Purchase (zycrypto)
Goldman Sachs explores offering new options for cryptocurrencies (FinancialReview)
Goldman Sachs Will Now Offer Its Clients Ethereum Funds Via Galaxy Digital (Bitcoinist)
BTC Outlook
Don’t expect to run out and place a bid based on this analysis. I just want to comment this morning on how absurd this price action is. It’s like the last day didn’t happen. Bitcoin’s price ran up to the resistance at $42.5k where it had previously held support before breaking down to $37k. Now, last night the whole move up was retraced and this morning we get this huge wick back above $40k which sold off almost instantly. My personal experience trading Bitcoin has lead me to observe that these wicks tend to fill. What I mean is often I see the price climb up slowly and retest the top of the wick. I would just exert caution here. The market appears thin, lacking participants, because how else could you get this crazy price action.
Possible Course of Action (advice from last week still holds)
Caution
If you shorted at $42k look to close your shorts near these levels
Buy dips with small size
The Bulls’ Defense:
Higher Low is a show of support
The Bears’ Prosecution:
Failure to break $42.5k shows a sign of weakness
ETH Outlook
He we got it right, From Tuesday’s Foot Guns: “I’d expect the price to retest the bottom side of the triangle at a minimum.”
Well it did and was quickly rejected. Though, not with much magnitude. In fact while BTC’s volatility has been increasing ETH’s has been decreasing. The once wildly swinging altcoin is now stuck in a consolidation pattern with tightening volatility. Pay close attention to the ETH/BTC ratio in the coming months. With competitors like LUNA climbing the ranks ETH’s price may suffer relative to its star competitors and of course Bitcoin.
Possible Course of Action
Cautious dip buying
(Buy LUNA, lol)
Fade rallies with small shorts
The Bulls’ Defense:
EIP-1559 has burned $5,072,883,196 (1,966,340 ETH) so far. Supply constraints should continue to have a positive impact on price.
Symmetric triangle
The Bears’ Prosecution:
Price rejected on bottom side of Symmetric triangle
Alternative chains like LUNA continue to capture market share
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Us Equities are moving around directly proportional to oil. Think you can't trade BTC in a vacuum and ES, CL, and NQ needed to be added to cheat sheet