The Search For Support
Bitcoin has been selling off for four days in a row. Where is support possible?
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Cheat Sheet -
Support and resistance levels and our daily, weekly and monthly bias on BTC, GOLD, OIL, ES, and NQ as well as our favorite altcoins
What We Are Watching
We further breakdown our case for these cryptos here : What We Are Watching
Steve Cohen exits investment in crypto prop trading firm Radkl (The Block)
TPS Capital exec departs as trading firm distances itself from 3AC (The Block)
Nomad cross-chain crypto bridge suffers $190 million exploit (The Block)
Robinhood's Crypto Division Fined $30M by NY Financial Regulator (CoinDesk)
NFT Exchange Magic Eden Expands to Ethereum (CoinDesk)
Crypto Exchange Luno Wins Regulator Registration in France (CoinDesk)
Metaverse market share to surpass $50 billion by 2026, says new report (CoinTelegraph)
Singaporean financial watchdog to consult public on stablecoin regulation (CoinTelegraph)
Binance US Delists Token After SEC Labels it a Security (Blockworks)
NY Attorney General Issues Call for Crypto Industry Whistleblowers (Blockworks)
Cybercriminals Plagiarize LinkedIn, Indeed Profiles to Apply for Crypto Jobs (Decrypt)
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The rally last week stalled out at the top of the bear flag that has been forming since mid June. The only context that has changed is where the price is relative to its 20 day and 50 day moving averages. In the first time in nearly four months the 20 day moving average has crossed in a positive way through the 50 day moving average (a golden cross). This simply means the price has stopped going down in the short term as the rate it was in the mid term. This can be a sign of a trend reversal.
However, looking back earlier this year to April you can see that when a similar bullish cross happened the price rallied in the short term but could not stay above the 20 day moving average for long and once it broke through again the price followed the 20 day moving average down for nearly 5 months.
This means it is likely market participants will be watching these two moving averages closely to see how the price behaves around it. If the 20 day holds as support this is a sign that buyers are back in the market and otherwise caution should be taken as more sideways or downward price action is likely
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Possible Course of Action
Long while price holds 20 day moving average as support
Do nothing and wait for the 50 day moving average to hold as support
Short or stop losses if the 20 day moving average fails to hold as support
The Bulls’ Defense:
Down trend is over extended
Golden cross of 20 day MA and 50 day MA
The Bears’ Prosecution:
Global macro uncertainty
Tech stock correlation
A Closer Look
This section will be focused on taking a closer look on what Hal thinks is important to watch in the coming week.
In support of our latest private podcast. Today we are going to focus on two altcoins on our cheat sheet.
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