IN THIS ISSUE
- Visa Turns To Ethereum To Run USDC Pilot Program
- Total Altcoin Marketcap makes a new all time high
- $BTC pushes through local range highs
- DeFi perp looks primed for next leg
- Heatmap: $KNC, $BEL, $BLANK
Ethereum headlines have stolen the spotlight this week as Visa announced a pilot program, in partnership with Crypto.com, that will allow users to settle a transaction using USDC on the Ethereum network.
While this is “just” a pilot program, for now, it speaks to a bigger picture that many crypto supporters have envisioned since the inception of Ethereum back in 2016. This announcement marks another major milestone on the path towards blockchain integration with the existing global payment infrastructure.
The fact that Visa chose Ethereum for this pilot and not Bitcoin or any one of the “Ethereum Killers” out there is a big stamp of approval for the ETH bulls who have had to endure an onslaught of skepticism this year in the face of slow transaction times and high fees.
The news was met by a surge in $ETH price of nearly $150 to open the week. When Ethereum does well, altcoins tend to do well and that is what we’re seeing as we head into the end of Q1 2021!
BTC/USD 4 HOUR
Bitcoin has broken back up above local range highs and is quickly approaching the $60,000 mark for the third time this month. I’m seeing a double distribution on the VPVR which suggests we could be in for more ranging in the weeks ahead.
The Volume Profile (on the right of the chart) generally likes to be “filled” before the price is said to be finished with a range and ready to explore higher. A full VPVR or “single distribution” forms a parabola.
If BTC does continue to range here that will likely mean more moonshots in the altcoin vs. Bitcoin pairs like we’ve seen recently with STORJ and MTL. There are a number of coins whose charts are bubbling up with large buy volume near the lows. This suggests that big players are rotating their Bitcoin into altcoins in preparation for a rally in alts, possibly throughout Q2.
A strong break of all-time highs on Bitcoin could be enough to bring altcoins back down into bottom accumulation ranges vs. BTC but that would simply delay what’s to come and is something I’d view as an opportunity to continue building positions for the highly probable liquidity cycle that would follow.
Ethereum is playing out a picture-perfect “Fib Pong” consolidation above previous all-time highs on the daily. There is still little interest from buyers up here as evidence by the declining volume but that could change very quickly as we near the apex of this consolidation.
I’ll be watching the volume closely on this daily chart for signs of a breakout. If we get that, along with a break above this wedge, $ETH will be thrust back into price discovery and likely headed well above 2k this time. The EIP-1559 narrative will be lingering in people’s minds throughout Q2 and should be generally bullish for price.
ETH/BTC is lingering at a key level, just above the high-timeframe RLZ, confluent with the bottom of this broadening ascending wedge. The time for bulls to step in and make their presence know is getting closer each week.
I’m content to wait on any kind of long exposure for this pair until I see a convincing breakout on the 4hr with some volume to back it up. I see many other, juicier, opportunities in the market for me to risk my Bitcoin on.
ALTCOIN & DEFI PERP
The same goes for the Altcoin and DeFi perps that have shown no significant changes this week, other than that they’ve both bounced up towards their local consolidation highs. The fact that they’ve held onto this local range tells me they’re gearing up for another leg in Q2.
Key things to watch for, as usual, include a break of local highs AND a breakout on volume. If we get that on the DeFi perp, I think we’ll see a sharp climb up to the 1.618 fib extension!
TOTAL ALTCOIN MARKETCAP
The Altcoin total marketcap made another new all-time high last week, peaking at $732,919,000!
With new coins being added to the market each week, it’s no surprise that we’d see this number trickle upwards, even in the midst of a sideways market on the indexes. History suggests that this consolidation period will be followed up by a strong continuation.
Kyber Network (KNC) is sitting at just under 600m MC with nearly all of its supply in circulation. The chart vs. BTC looks very strong this month with a clear rise in buy volume marking the lows and a recent breakout on high volume. Price is sitting in the local Pump Chaser Zone which is enough for me to take a position with my targets up around the Chaos PRZ levels shown on the chart.
Bella Protocol (BEL) is testing resistance against BTC for the 5th time at this level since November 2020. Again, I’m seeing a large influx of buying volume down here around the HTF lows which tells me we’re in an accumulation range. If we see a break and close above 7500 sats, BEL should be in for a very big second quarter this year.
Blank (BLANK) is a relatively new, privacy project built on Ethereum and has a Marketcap of 27m with about 13% of supply currently in circulation. They’re building a Metamask-like Chrome Extension that will allow users to send and receive ERC-20 assets, completely anonymously.
The BLANK token rewards holders with fee reductions and LP’s with 50% of fees generated. There is also a deflationary aspect as the other 50% of fees collected will be burned.
Price has been quietly trending up since their launch in early March and looks like it could be headed into an acceleration of trend here very shortly.
*This is RT’s fund. He is invested in this project but has not been paid to promote it.*
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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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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