Crustacean Station

Crypto markets drag sideways as equities look to recover

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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

10/25/22 9:06 AM ET

New here? Learn how to read the cheat sheet.

What We Are Watching

We further breakdown our case for these cryptos here : What We Are Watching

10/25/22 9:06 AM ET

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Crypto News

• Kings of Leon's NFT album creator now has a metaverse music venue (The Block)

• Bithumb ex-chair Lee Jung-hoon could face jail term in $70 million fraud case (The Block)

• Near Foundation spends $40 million to replace USN stablecoin's 'collateral gap' (The Block)

• Warren, Ocasio-Cortez Ask Regulators to Clarify Stance on Crypto Hires (CoinDesk)

• Apple Refuses to Exempt NFTs From App Store’s 30% Fee (CoinDesk)

• Wealthy crypto believer and incoming UK PM Rishi Sunak once commissioned a royal NFT (CoinTelegraph)

• The Graph Co-founder Building Info Gathering App, Web3 Browser (Blockworks)

• Crypto Hedge Fund Taps Former BlackRock CIO as Strategy Head (Blockworks)

• Tesla Holds Its Remaining Bitcoin Through Q3 After Q2 Sale (Blockworks)

• Terra Witness Skips Official Inquiry, Cites 'Extreme Stress' and 'Panic Disorder' (Decrypt)

• Compound Unanimously Votes to Pause Activity for 4 Cryptocurrencies (Decrypt)

• SEC Chair Gensler Says Crypto Is Centralized Despite Founding Principles (Decrypt)

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BTC Outlook

If you missed last weeks BTC Outlook we focused on the 20-week moving average and continued squeezing of the price volatility. Well the plot continues to thicken as BTC’s price action is continue to squeeze tighter with reduced price volatility.

You can see on the chart above the 50-day moving average drawn in a thin blue line and a reference line drawn at $19k also in blue. It appears that the price keeps bouncing between $19k and the 50-day MA with one good attempt to break out and almost all of the selling below $19k being bought up within a day.

We are biased to the upside for a breakout of this consolidation. However, if you want to be prudent you would continue to wait for the price to trade back above the 50 day moving average before getting long and a stop loss at the moving average or at $19k.

Also note that the last few weeks have been an incredible opportunity to provide liquidity in a DEX AMM like Uniswap where you earn fees on others trading. In fact if you consider yourself a momentum trader then the momentum at the moment is towards a crab (sideways) market. You can treat an LP with stop losses just like a regular short or long position. If BTC moves back above the 50-day MA you could remove your liquidity and buy BTC with it if you are wanting to switch from bias sideways to long.

Please join us in our discord where we discuss active and potential trades.

Possible Course of Action

• Long if price rises above and holds 50 day MA

• Short if price meets 50 day MA as resistance

• LP in Uniswap or favorite DEX AMM until price moves above 50day MA

The Bulls’ Defense:

• Momentum of macro downtrend lost

• $19k has proven to be strong support

The Bears’ Prosecution:

• Price still under 50 day MA

Earn Interest on your Bitcoin

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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.

Today we’ll look at the S&P500 and its short term relative outperformance compared to crypto.