Wake Up, It's The First of The Month
Will September be the chance for crypto to wake up from the summer lows?
Cheat Sheet -
Support and resistance levels and our daily, weekly and monthly bias on BTC, ETH, OIL, ES, and NQ as well as our favorite altcoins.
US prosecutors requested records on Binance CEO, Reuters reports (The Block)
Crypto Coin AVAX Drops 11% After Self-Described Whistleblower Says Avalanche Weaponized Litigation Against Rivals (CoinDesk)
Ether, Bitcoin Could See Turbulence as Open Interest Leverage Ratio Soars to Record High (CoinDesk)
DeFi protocol shuts down months after the Rari Fuse hack (CoinTelegraph)
Tens of Celsius clients ask US court to recover $22.5M in crypto (CoinTelegraph)
Suit: Michael Saylor, MicroStrategy Owe $100M+ of Damages From Back DC Taxes(Blockworks)
Helium May Say Goodbye to Own Blockchain As Likely Solana Move Looms (Blockworks)
Janice McAfee Does Not Believe John McAfee Faked His Death (Decrypt)
California Crypto Licensing Bill Awaits Governor's Signature (Decrypt)
Any Ethereum Forks ‘Won’t Be Supported’, Says NFT Market OpenSea Ahead of Merge (Decrypt)
Well not much has happened since Tuesday. Bitcoin made an attempt to get back into the blue box but was quickly reject. Now sitting just under $20k. Our original advice was the be looking for a short if BTC lost $20.5k as support. However, so far BTC has not taken the opportunity to sell off further and in fact appears to be putting in a higher low. There could still be an opportunity to short here and the first target would be the yearly low near just below $18k.
It’s the first of the month and nearing the end of Q3. Historically, BTC has performed well in the month of September. If you don’t have the ability to short (or time to monitor the trade) then waiting on the sidelines for a pull back or confirmation that the recent sell off is a higher low would be prudent.
One thing to note is we are going into a holiday weekend which tends to see slumping crypto prices.
Possible Course of Action
Long if daily candle closes above $21.5k
Do nothing and wait for a retest of the blue zone ($20.5k -$21.5k)
Short here expecting a retest of the yearly lows
Wait for confirmation of a higher low
The Bulls’ Defense:
Higher low possible
The Bears’ Prosecution:
Bear Flag sell off playing out
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.
Even though the merge is on the top of everyone’s minds we will be discussing another altcoin that has been performing recently. Join us in discord if you’d like an update on ETH.
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