IN THIS ISSUE
- Coinbase NASDAQ listing week!
- Bitcoin & Ethereum explode into price discovery
- Total Altcoin marketcap approaches 1 Trillion
- Heatmap: $ATOM, $BSCV, $SCRT, $RAZOR
The market looks extremely bullish! All eyes are on the NASDAQ of all places this week as Coinbase is set to list shares of their company ($COIN) tomorrow! The bulls are laying big bets on FTX’s “CBSE” vs. USD pair that represents the Coinbase stock in advance of tomorrow’s big listing.
According to Cryptobriefing.com, “The pre-market tokenized version of the stock is trading at a $140 billion valuation on FTX. The value is two times higher than the New York Stock Exchange (NYSE) and six times more than the NASDAQ’s valuation.
Such high premiums will no doubt leave some room for intense volatility tomorrow as the actual stock and the tokenized version of the stock seek equilibrium. Much like quarterly earnings reports, the effect of this listing and the price action that follows will have a lot to do with expectation vs. reality.
If the general expectation is extremely high and the launch is on par with more conservative expectations, we could see “disappointment” reflected in the market as a result. Alternatively, if the stock soars on day one out of the gates as investors scramble to get a piece of the next “picks & shovels” play for Crypto, we could see another big rally in $BTC and $ETH in the wake of the listing.
Regardless, the probability is very high that we’re going to see some intense volatility into and shortly after this event. I’m positioned on the long side of the market, but am making sure to keep my position sizing small enough that I can have wide stop-losses in place, in anticipation of potential “Darth Maul” wicks amidst the excitement.
BTC/USD 4 HOUR
Bitcoin broke out over the weekend, reclaiming the range highs that I’d been tracking and formed a bullish consolidation near 60k. We were blessed with a strong break to the upside overnight last night that showed great interest from the bulls above previous all-time highs and we look set for price discovery this week!
The high timeframe cluster of price objectives is all the way up at 93-103k. We could be in for some serious upside in Q2, but I’d like to see how the Coinbase listing shakes out before making any short term, “bold” predictions.
Ethereum is back into price discovery after a bullish daily close on Sunday night, hinted at the imminent upside. The dip back to just below 2k was all we ended up getting. The daily chart is showing a 1.618 Fib extension up at 3k USD which is suddenly “just” $700 away. Gas fees remain on the cheaper side in the midst of the current rally, averaging between $30-$50 right now.
“Flashbots” could be to thank for this. I’ll leave this tweet here for your own investigation, the technicalities behind it are well outside my area of expertise but it sounds plausible and good for $ETH users all the same!
Zooming out on Ethereum, a HTF extension points to a whopping $6500 target for the year. One look at the $ETHBTC chart tells me this is not out of the question. Not by a long shot!
$ETHBTC is testing a key weekly resistance level this week that if broken, could act as a launchpad for price in the coming weeks and months. This is the last major resistance standing between the current price and the next major resistance level up at .055 BTC. We’ve already broken this level once, so a re-break would be a very strong signal to the bulls that #Ethereum is back and ready to push back in the battle for dominance vs. Bitcoin.
ALTCOIN & DEFI PERP
The altcoin perp exploded to the upside again last week as price discovery continues and the early stages of a market-wide “altseason” rage on. Price is quickly approaching the next chaos level that should act as a rest stop ahead of whatever comes next.
The DeFi perp is following closely in the shadow of the alt-perp and should be expected to see a big move in the coming weeks having now re-entered price discovery. Amidst all the chaos in the market, so many good-looking charts, so many levels to watch, some traders may prefer to capture the overall trend by gaining exposure to an index perp like this one.
TOTAL ALTCOIN MARKETCAP
The Altcoin total marketcap enjoyed another leap upwards this week, peaking just shy of the monumental $1,000,000,000,000 mark!
The Chaos PRZs, drawn up from the previous cycle kick out a lofty target of $2.03T and $3.88T respectively. There is nothing in the market right now that tells me we can’t hit these numbers in 2021.
The heatmap names from last week included $B21, $YOP, $ALGO & $REN. All of them moved sideways for the most part, continuing their current consolidation patterns. This week I’ve found a few more names that are either consolidating at key levels or have just broken out from recent consolidations. As usual, none of these should be considered “buy signals”, but rather, a starting point for readers who are looking for trade ideas to chew on in the midst of the bull market.
The Cosmos ecosystem is developing quickly this year. It seems another project launches on there every few weeks. They recently announced the launch of their upcoming Gravity DEX that will be “The Cosmos Interchain Exchange”. The following link includes details of their incentivized test-net and a 7-day countdown to launch.
I’m not one to ignore a developing narrative like this that would put even more eyes on what I already consider to be a very strong project. The chart vs. USD recently confirmed bullish market structure after a month-long consolidation. It looks primed for another leg to the upside this month.
BSCView – (BSCV)
This is a very low-cap coin that was recently put on my radar by someone who I’d consider to be a bit of an insider in the DeFi space. He said that their product is expected to launch very soon, so I did some research.
BSCView is very similar to DEXTools (but for BSC), in that it will provide Binance Smart Chain users access to all kinds of helpful tools they can use for trading and interacting with Pancakeswap.
Last summer my team spotted DEXT very early and we were rewarded with incredible gains through DeFi summer while the coins were bought up and held by users to unlock their premium features.
BNB has been on absolute fire this month and I think its probable that we will see a liquidity cycle from BNB profits into some of the BSC names sometime soon. That would mean more demand for something like BSCView that offers users a comprehensive toolset when interacting with BSC. I want to use it. That’s usually a good sign to me that I should be investing in it.
The USD chart looks incredible from this view, but I have to keep in mind that the BSCPad IDO price was $.022 so there is some risk of selling on token release dates. I’ve taken a position and will look to add on dips in the lead-up to the launch that I expect to be announced sometime in the next 2-14 days. It may take some time for the real demand to affect the market. I plan to be patient with this sub 5m MC gem.
Secret Network was brought to my attention last year when Crypto Messiah interviewed founder Tor Blair on the Hxro Labs stream. I didn’t pick any up back then, but I have done some research since and am very excited about the potential this chain offers. Big privacy names like ZEC and XMR are making moves this Q so I think the stage is set for the first major, privacy based, smart-contract platform to rise up the ranks.
They recently announced a Bridge protocol that will allow The Monero Blockchain to interact with the Secret Network. Essentially granting XMR access to a DeFi ecosystem. When I see the 5.7b MC on XMR and compare it to the 288m MC of SCRT, I get excited.
I’ve been tracking the SCRT/BTC price chart on my twitter and on stream lately and am seeing all the signs of continuation brewing up on the chart.
RAZOR Network (RAZOR)
RAZOR network is building what they call a “Truly Decentralized Oracle Network”. I haven’t done a deep dive into the Whitepaper or anything, but the chart caught my attention as well as spotting Alameda Research on their investor’s list. I’ve seen a number of accounts on CT mentioning it which tells me there is no shortage of hype potential to be generated if/when it breaks out of this range.
I am building a position around the range lows this week in the $.62-$.67 area. I’d be hard-pressed to believe this one won’t see its day in the sun sometime in Q2 and the pennant tells me we could be close to a breakout here soon.
I’ll continue to keep you updated on all the hottest opportunities I can find in the space, until next time, have a great week, and whatever you do, always play from a position of strength!
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