IN THIS ISSUE
$BTC surges back above 50k
ETH reacts positively to throwback levels
Consolidation continues for #crypto, #altcoins & #DeFi
Heatmap: $ID, $MAPS, $OXY
The correction continued throughout last week and over the weekend. Blood in the streets with double-digit drawdowns on some of the hottest names in #crypto. A fairly common event during a bull market but one that consistently drives market participants into a state of fear and uncertainty.
Bitcoin pulled back 26% from recent highs while Ethereum tumbled just over 36%. THIS is the price of admission if we want to play in a market with an asymmetric risk profile. There is no free lunch.
To capture the 5x and 10x returns we must endure pullbacks that, if they happened on major indices like the S&P500 would send the world into chaos. The leverage that is Crypto goes both ways which are why managing position size and paying ourselves when we’re up big is so key.
Using technical analysis, we can plan for such events, and react to them in a way that sets us up for future success with the application of tools like the Pump Chaser Zone.
After a shock like we saw last week, traders should expect the “uncertainty” to linger while players jockey for position. The market is likely to continue consolidating in this range for at least another week or two.
This will be tough trading, and likely chop up anyone who is reacting to the most recent moves on the hourly. I shared a short video yesterday that highlights a trading strategy best suited for this particular phase of the bull market.
$BTCUSD front-ran the 40-42k bullish throwback level that many were eyeing over the weekend and it hasn’t tagged the HTF PumpChaserZone either. The volume this week should give us a clue as to whether we’ll see those levels in the coming weeks, or if that was it for this pullback.
BTC DOMINANCE WEEKLY
$BTC dominance has been flatlined for almost a month now after coming into the Wyckoff check of the summer lows. It’s going to be tough to move the needle on this one with ETHBTC sleeping. The next big break could be weeks away. #Altcoin holders are betting on “Down only”!
$ETHUSD tagged the #PumpChaserZone beautifully while retesting previous cycle all-time highs. The volume continues to be a concern for bulls who would like to see new highs this week to confirm that the pullback is over. We expect consolidation for at least one more week.
$ETHBTC is now trading below the 20 week SMA, resting in the top of the Reload Zone. There are a number of shiny new alternatives that are catching momentum this Q. Including $BNB, $SOL, $AVAX, $DOT, $ADA, and the lesser-known $HTR. Will high fees continue to drive users off-chain? The jury is still out! But it seems probable that $ETH dominance will continue to be divided amongst the new kids on the block until the scaling issues are properly addressed.
The #Altcoin perp put a beautiful tag in on the #PumpChaserZone and is consolidating between the Chaos PRZ and new highs this week. No rush on our part to catch the next big move. A large shock to the trend like we just saw “should” kick this thing into at least a couple weeks of consolidation.
DEFI PERP WEEKLY
The #DeFi perp is looking very similar but perhaps a bit stronger as one would expect. Any move to new highs on this chart will put the next Chaos PRZ level into play around $19,834. Generally speaking, DeFi has no chill. So we’ll be keeping a close eye on this one to see if it has plans to break away from the pack this month.
Altcoin Total Marketcap
The total #Altcoin marketcap put in a picture-perfect bullish retest last week and looks incredibly bullish overall. Rising volume, break of highs, bullish retest… This thing is setting up for what appears to be an incredibly bullish rally through the year. New projects launching every week, for now, there is no end in sight from this Macro view of the #crypto market.
For most of us, this is a good time to step back from the intense “aping” and the LTF leverage trading to look around the market for more unique opportunities to get ahead of the next wave. Seeking out the quiet pre or post-launch projects that hardly anyone is talking about right now, will allow us to trade from a position of strength through Q2.
Everest $ID began trading in early February and after a strong rally out of the gates has sold off and settled into the Reload Zone where I’ve been re-accumulating my position. With an FTX partnership and very strong licensing in place, this is one I’ve got high hopes for in the coming weeks/months.
$MAPS is a lesser known $SOL based play that started trading on Feb. 1st and is trending up on the daily. With 66m users on the app and a stake-based revenue share model in the works, this is another quiet banger that I expect to see on some leaderboards in the not so distant future.
The $OXY IEO is coming up on FTX exchange on March 9th.
– Non-US only
– 30-day trading volumes above $50,000 (Buy & Sell 1 $BTC)
– 500+ $FTT staked
– Level 2 KYC
The project looks interesting and given that it’s being endorsed by FTX at a time when almost all IDOs/IEOs are launching at a multi-x price. This is one I’ll be looking into! https://www.oxygen.org/
https://www.blockswap.network/ is a little-known DeFi project that will be doing a fair launch public sale via Balancer pools later this month. Followed by a heavily incentivized CommunityNet in the months that follow.
Their first product, “$aver token” will be a, USD denominated, “Universal Savings Account” that leverages PoS yields to provide holders with a FIXED yield of 7% on their savings.
Full Discloser: I seeded this project in late 2020 and am working as an advisor. My seed tokens won’t unlock until late 2021 and will vest for 1 year following that date.
Blockswap and my investment are in no way affiliated with Hxro Games Inc. or Hxro Labs. I think the Balancer Public sale and CommunityNet will provide a great opportunity and I plan to participate in both. I will always be transparent about my involvement with projects.
In general, if someone talks about a coin, you should assume they have a bag. As with any new project, it’s very important to do your own research and consider that any number of things can change or go wrong throughout the development phase of a project.
None of these projects are going to be a guaranteed winner! Managing risk is ALWAYS the number one rule when it comes to success in the #crypto market. I’ll continue to share the best ideas I can find in the market and at a time when the risk:reward is as high as possible.
I’m confident that we have a very exciting year and the decade ahead of us and will manage risk all the way through so that I always get to come back and play the game tomorrow. You should do the same!
The following commentary is provided for informational purposes only and may not represent the views of Hxro Games Ltd. or its affiliates, and should not be viewed as legal, tax, investment, financial or other advice. Digital asset transactions are inherently risky, and you are fully and solely responsible for evaluating your purchasing decisions at your own risk. Past performance is not indicative of future results.
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