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Crypto News

• Tether's Paolo Ardoino on UST: 'It's All Fun and Games' Until You're a $100B Coin (CoinDesk)

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• Bitcoin institutional buying ‘could be big narrative again’ as 30K BTC leaves Coinbase (CoinTelegraph)

• President Biden announces former Ripple adviser as pick for Fed vice chair for supervision (CoinTelegraph)

• Making Bitcoin legal tender in Mexico will be ‘an uphill battle,’ says Ricardo Salinas (CoinTelegraph)

• Ethereum DeFi Protocol Beanstalk Hacked for $182 Million (Decrypt)

• Terra's Stablecoin UST Becomes Crypto's Third-Largest (Decrypt)

• Digital Funds Seeks to Launch Tokenized S&P 500 Fund (Blockworks)

• WonderFi Continues to Consolidate Canadian Market With Second Acquisition (Blockworks)

• Russian Crypto Bill Amendment Targets Mining, Trading (Blockworks)

Foot Guns █████ @Foot_Guns

How it be right now

5:27 AM ∙ Apr 19, 2022

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3Likes1Retweet

BTC Outlook

Bitcoin has been forming this massive ascending wedge ever since the price fell below $45k in December. Sellers are consistently coming in at $45k and driving the price back below $40k. However, each move down has resulted in a higher low. The price volatility has also been compressing now with the price moving into the tightest region of this wedge pattern. While it is possible there is another wick down to test $38.5k, most likely Bitcoin will trade between $40k and $45k in the coming week(s) testing the sellers in this region and the resolve of holders and new buyers. The last rise above $45k was a bull trap, buyers may be timid about following a breakout here.

Possible Course of Action

• Do nothing wait to buy breakdowns of this pink downtrend line (worked well last week)

• Short rises above $45k

• Long here expecting a retest of $45k

The Bulls’ Defense:

• Higher lows show a sign of support

The Bears’ Prosecution:

• Price could break the rising lows

ETH Outlook

We are continuing the follow the ETHBTC pair as BTC grasps onto $40k. ETH has been trading within 3% of the BTC price movements since early April. This shows that buyers are not scrutinizing crypto and just pressing the buy button on the top two (Chipotle Dad’s buying ETH because it’s “cheaper” than BTC). This consolidation over April appears to be forming a bull flag. The problem with bull flags in crypto is they are hard to distinguish from the dread Bart Simpson pattern. What looks like a bull flag resolves to the point where the breakout first occurred. In this case that would be about 0.072 ETH/BTC ratio. We expect that this bull flag will in fact break to the upside if BTC rallies and otherwise BTC moving back below $38.5k will bring ETH down with it and ETH will probably go down faster. Basically, as per usual ETH is a good way to add Beta to your BTC trade.

Possible Course of Action

• Buy ETH on the bottom side of this flag

• Do nothing, wait for a break out to the up or downside of the flag

• Short if BTC shows weakness

The Bulls’ Defense:

• EIP-1559 has burned $6,528,955,316 (2,131,674 ETH) so far. Supply constraints should continue to have a positive impact on price.

• Potential Bull Flag

The Bears’ Prosecution:

• Potential Bart Simpson sell off

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