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FG Cheat Sheet 111821

Bitcoin falls -2.5% overnight

Nov 18, 2021

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Hal and Wasabi help Boomer understand their view on the future of Ethereum.

CHEAT SHEET

Pink = Bearish, Blue = Bullish, Orange = Neutral since the date given in “Bias Since”. Support levels are where the price could bounce when falling and Resistance levels are where the price could stop if rising. The black outlined boxes show the price at the time of cheat sheet creation. You can find more details on how to read the cheat sheet here.

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.

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Crypto News

Ontario teen arrested after allegedly stealing $46 million in cryptocurrency from one person in the U.S.
Fidelity approved to become Canada’s first institutional Bitcoin custodian.
CashApp to add Bitcoin Taproot support by December.
Exclusive: Ocado and Homebase to offer millions of Brits Bitcoin cash back
India to Reportedly Permit Use of Cryptocurrencies as an Asset
ConstitutionDAO Has Raised 8k+ ETH to Buy the Constitution at a Sotheby's Auction
Ethereum Wallet MetaMask Reports 21 Million Users, Up 420% Since April
(20th probably*)
TIME Magazine to Hold ETH on Balance Sheet as Part of Galaxy Digital Metaverse Deal
Michael Burry from ‘The big short’ calls cryptocurrencies a “bubble” but says he doesn’t bet against the market

*editors comments unproven & sourceless

Bitcoin Outlook

Bitcoin has formed a sort of double top on the daily time frame. This has confluence with the RSI which has shown bearish divergence with the recent all time high. Shorting an RSI break below 50 has really only worked once in this last year. All of the other times buying the dip when the RSI fell below 50 resulted in gains. However, If you bought in June-July you would have experience a lot of suffering waiting for the price action to turn around.

I’m tempted to short this but I’ve chosen to just go to cash, get flat and watch for an entry. Of course as we’ve discussed on the podcast I’m still long some BTCs from $3k.

Possible Course of Action

If not long this could be a good entry
A short with a price target of $50k could work
If already long consider reducing exposure

The Bulls’ Defense:

Potential bull flag forming
Price bounced off 0.618 fib retracement

The Bears’ Prosecution:

Price weakness could see $50k be retested

ETH OUTLOOK

ETH has a simpler setup than BTC. The price is going up and to the right with large periods of consolidation. The recent price mark up has ended and now consolidation has begun. You will notice that the price is now near levels where it topped out in late May.

Except the price to consolidated around $4000 with possible volatility to the downside. This is probably a good place to take some profits and observe.

Possible Course of Action

Take profits if long since early October
Get long if already flat
A short down to $3800 could work

The Bulls’ Defense:

EIP-1559 has burned $3,901,803,933 (933,390 ETH) so far. Supply constraints should continue to have a positive impact on price.

The Bears’ Prosecution:

Price has lost momentum, could consolidate down to $3500

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