FG Cheat Sheet 120721
Don’t miss this weeks private podcast!
Hal and Boomer discuss their short-term outlook on crypto and broader markets, and Hal laments being blocked by Will Clemente (one of his personal heroes) on Twitter.
CHEAT SHEET
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.
The Decentralized Reserve Currency
Crypto News
Could Syscoin’s Smart-Contract Chain Launch Mark a Turning Point for Ethereum?
Web3? I have my DAOts
Endgame -Vitalik Buterin
One of the largest Bitcoin Whales purchased another 2702 Bitcoin
Bitcoin trial: Defendant wins dispute over $50B in Bitcoin
World’s First Bitcoin Lightning Payroll Processed by BitWage
Bitcoin miners say they’re helping to fix the broken Texas electric grid — and Ted Cruz agrees
Joe Biden’s Government is Mining Bitcoin, Says White House Adviser
Bitcoin Outlook
BTC is almost literally a pinball bouncing back and forth between what humans love most : Big Round Numbers. Throw your TA out the door and draw lines at $30k,$40k,$50k, etc… and the BTC story becomes clear. No one knows how to value this thing. On chain analysts are always a week behind, and even PlanB’s floor model has now missed the boat. Willy Woo (whose newsletter is 6x as more expensive as Foot Guns) posted some cryptic indicator with no explanation that appears to have crashed the markets a few days later.
The point is. No one knows where this is going. We are just here to help cut through the hype and noise.
Look at the chart above. BTC is simply bouncing around between Big Round Numbers.
And where do we go from here? Well the price wicked trying to touch $40k (on some exchanges it touched $30k) and now it’s back above $50k. So… that’s right! It’s probably going to go touch $60k again. Wherever the price goes you can bet it will be towards some Big Round Number.
Possible Course of Action
If not long this could be a good entry
No obvious short play here, but check out yesterdays newsletter about how to short sell in DeFi
The Bulls’ Defense:
$40k and $50k tested, $60k is up from here!
The Bears’ Prosecution:
Multi-week downtrend could continue
CAUTION - There was an exploit last week affecting some badger users. Please follow these instructions if you think you may have been affected. We’ll write more about the post-mortem when the information is available. For now you can follow the investigation here.
ETH OUTLOOK
ETH’s price action has become a hot mess. We pointed out that once the price broke down from its “up and to the right” run from October to early November, that ETH would most likely fall into a multi-week or multi-month consolidation phase. Well, that consolidation is happening now but not without extreme volatility. With this price action you should be caution trading with leverage.
Boomer’s take was the just get out of ETH at $4000 and if you had followed that move you’d be sitting calmly watching everyone else sweat trying to capture a +10-20% move with equal downside.
Just as with BTC, ETH will probably go find it’s next home near a Big Round Number, either $4k again or $5k. There’s no obvious bias in the TA (always be checking the cheat sheet).
Possible Course of Action
Long here expecting a retest of ATH
Could try opening a short near ATH for a potential correction
A short on a break down from $4000 could work
The Bulls’ Defense:
EIP-1559 has burned $4,975,514,133 (1,137,721 ETH) so far. Supply constraints should continue to have a positive impact on price.
The Bears’ Prosecution:
Failure to break ATH could result in multi-week (or month) consolidation
Please don’t forget to like (heart button at bottom) and share this post!