A Fresh New Look
We've updated our look
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CHEAT SHEET
We’ve updated the cheat sheet!
In order to understand how the macro picture is developing we are now following CL (front contract of light sweet crude oil), ES (S&P 500 e-mini futures contract), NQ (Nasdaq-100 e-mini futures contract). This should help you understand the broader market conditions you are buying or selling crypto within.
We are no longer showing you the date our Bias change but instead the last 3 bias for each timeframe. For example, for the last three months Bitcoin has been bearish, this week and last week it is bullish and before that were neutral for the weekly.
Altcoins We Are Watching
Crypto News
Why There's Already a Will Smith Slap Token (CoinDesk)
Shiba Inu's Metaverse Will Feature More Than 100K Land Plots (CoinDesk)
US Lawmakers Introduce 'ECASH' Bill in New Push to Create a Digital Dollar (CoinDesk)
Investment tracker Delta expands its Web3 offering with an NFT explorer (CoinTelegraph)
30% crypto tax becomes law in India following Finance Bill approval (CoinTelegraph)
Washington state passes bill aiming to expand local blockchain adoption (CoinTelegraph)
Blockchain Gaming Firm Cross The Ages Gets $12M From Ubisoft, Polygon (Blockworks)
The Ronin Hacker Made Off With $625M of Crypto, but Cashing Out Isn’t So Easy (Blockworks)
Visa Launches Program for NFT-focused Entrepreneurs (Blockworks)
Japan To Revise Foreign Exchange Law Targeting Crypto Over Sanctions Evasion (Blockworks)
LayerZero Raises $135M From Andreessen, FTX, Sequoia to Build Out 'Omnichain' Protocol (Decrypt)
Helium Crypto Wireless Network Founders Raise $200M, Rebrand to Nova Labs (Decrypt)
BTC Outlook
If you are newer to Crypto you have probably yet to hear about or experienced the Bart Simpson chart pattern. The idea of the pattern is Bart Simpson’s head is basically a rectangle with a bunch of spikes on top. For whatever reason, Bitcoin’s price action loves to create what looks like an outline of Bart Simpson’s head on the chart.
Now, just like all TA patterns these things have a historical bias to behave a certain way but it doesn’t always play out that way. Another thing is, it’s challenging to determine what makes it a Bart vs a Bull flag. What is fairly likely is that when the price breaks out of this consolidation it will go their quickly. That’s how the Bart pattern forms, a failure to break out of this sideways consolidation followed by a rapid sell off.
Probably, the safest way for you to play this price action is to wait for a breakdown and be okay with missing the trade if it breaks out. Buying the bottom side of this flag has also worked for the past few days. But of course, if you want to take the bet on Bart Simpson here it could be a great short.
Possible Course of Action
Do nothing wait for breakout of current consolidation
Short betting on a Bart
Pick up longs on the bottom side of consolidation
The Bulls’ Defense:
Potential Bull Flag
The Bears’ Prosecution:
Potential Bart Simpson
ETH Outlook
ETH’s price action looks less like a Bart and more like a classic Bull pennant. We’ve also shown on the chart the two Fibonacci golden pockets based on the local bottoms on March 15th and March 27th. These are around $3300 and $3000 and could be a great place to but a buy order and patiently wait for a pull back. However, if this bull pennant that is forming plays out then there will be no pull back yet as ETH moves up to test the $3500 level.
Similar to Bitcoin it may be best to sit on the sidelines and wait to see which way this consolidation breaks out. We are being defensives with buy orders under the price and holding some spot ETH.
Possible Course of Action
Long here betting on this Bull Pennant to breakout
Buy orders in the two Fibonacci golden pockets
Short betting on a retest of $3300
The Bulls’ Defense:
EIP-1559 has burned $6,936,323,554 (2,043,750 ETH) so far. Supply constraints should continue to have a positive impact on price.
Bull Pennant
The Bears’ Prosecution:
Price is over extended and a correction would be healthy
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Mistake on the cheat sheet. Sushi is trading at $4.60. Will be updated soon on the post.
Me likey Sushi