This week was jam-packed with exciting news in the world of crypto! Congress heard Coinbase’s Paul Grewal argue for SEC registration laws, while Binance received the green light to acquire Voyager assets. BTC took a dip below $20k following Fed Powell’s speech, but on the bright side, stablecoin inflows to Eth L2's skyrocketed to over $2B! And let’s not forget about the ever-booming NFT market with two new marketplaces going live - it’s time to get in on the action!
This week saw BTC dip below $22,000 in anticipation of Fed chair Powell testifying before congress later reaching sub $20,000. Despite that, however, Paxos’ consumer confidence report showed interest in crypto remains high, especially after the FTX debacle. News surrounding market goliath Binance came out with their acquisition of Voyager getting the go-ahead, while Voyager Token rose 11% following the firm's denial of the claim that VGX is a security by the SEC. NFTs saw some action too, with CorePunks the first punk NFTs on the core blockchain selling out!
Interest lightning network developments took place this week with Jack Dorsey’s TBD launching C= and both Near protocol launching their ‘Blockchain Operating System’ for Web3 alongside Coinbase launching their wallet API to integrate web 2.0 devs into web3. The NFT space followed suit with Flare launching their NFT market place boosting interoperability and Pi NFT with the first NFT marketplace on the Pi Network - new tech all around!
Grayscale’s bitcoin ETF won its first battle against the SEC this week, while we saw the G20 meeting focus on the hot topic of a global unified approach to crypto regulations. Coinbase Exec Paul Grewal argued for crypto firms seeking SEC registration that ETH tokens are essential for executing smart contracts on the Ethereum network in his ‘Catch 22’ argument in front of Congress. Meanwhile, in the metaverse, Democratic senators push back against bringing teen’s into the metaverse.
Xapo Bank kicked off crypto adoption becoming the first lender to enable near-instant bitcoin payments. Pakistan saw the implementation of blockchain tech for KYC while Japan commenced their awaited stablecoin issuance program. Russia continued their aggressive adoption with issuing its first blockchain-based bank guarantee in Chinese yuan. Finally we ended the week with Nobody Studios becoming a blockchain innovation Hub with Ibex Labs.
Bitcoin dropped below $20,000 this week after finding brief support at the daily EMAs while we saw the bitcoin network reach record-breaking hash rate with taproot adoption picking up speed. Meanwhile Argo Blockchain mining company continued its increasing bitcoin mining leading to outpacing difficulty growth.
tl/dr:
The LTFs show signs of breakout given the HTF's high volatility. We've now seen price stall at the unmitigated bullish order block at $19,500, and we'll watch closely how we end the current week.
Two scenarios are likely to take place, either we retrace into a discount for the last 4H range ($20,750), where price will decide to keep retracing higher, or continue its downward trend. Secondly, price fails to find support, and we crash down to our deeper discounted prices target.
tl/dr:
We got consolidation at support to start the week, forecasting that if the bear scenario was to take hold, a run down to $20,000 would be probable, and that is exactly what we got.
Price hovered around the 1D 50 and 200 EMAs before aggressively breaking below, raiding 1D sell-side liquidity with momentum, signalling further bearish prices.
The most likely place short-term support would be found would be as we tested discounted prices, fair value gaps, and previous unmitigated bullish order blocks, which is what we got at just below $20,000.
Now we expect either continued bearish trending of price down into a deep discount around $18,000. Alternatively, a retest of the daily 50 and 200 EMAs after a bullish retracement could set in motion selling at value for deeper bearish trends.
Traders saw Ethereum's low volatility to have been caused by the anticipation of the upcoming Shanghai hard fork after a series of delays, finally ending the week with a drop below $1400. Ethereum’s futures premium moved to 3.1% down from 4.9% one week prior becoming more distant from the 5% neutral-to-bullish mark. Stablecoins had an impact too, with inflows to Ethereum L2s rising 5% to over $2B.
tl/dr:
ETH's clean manipulation pattern accumulated buyers and sellers to act as liquidity for its breakout below the 1D sell-side liquidity, which successfully played out. After reaching premium prices, and mitigating bearish order blocks positioned above 1D buy-side liquidity, we have now seen price aggressively breakout to the downside.
From the bullish perspective, however, this bearish move was anticipated given the aggressive bullish trend we saw initiate since the start of 2023, bringing price back to a place of discounted prices, accompanied by bullish order blocks and 1D sell-side liquidity to act as a value zone for buyers who anticipate a macro bullish cycle to enter their positions.
Moving forward, we expect either an aggressive bullish retracement into retesting the underside of the 50 & 200 ema for deeper bearish prices, or we continue our bearish run down into the value zone with no signs of retracement beforehand.
Bitcoin dropped below $20,000 this week after finding brief support at the daily EMAs while we saw the bitcoin network reach record-breaking hash rate with taproot adoption picking up speed. Meanwhile Argo Blockchain mining company continued its increasing bitcoin mining leading to outpacing difficulty growth.
tl/dr:
The LTFs show signs of breakout given the HTF's high volatility. We've now seen price stall at the unmitigated bullish order block at $19,500, and we'll watch closely how we end the current week.
Two scenarios are likely to take place, either we retrace into a discount for the last 4H range ($20,750), where price will decide to keep retracing higher, or continue its downward trend. Secondly, price fails to find support, and we crash down to our deeper discounted prices target.
tl/dr:
We got consolidation at support to start the week, forecasting that if the bear scenario was to take hold, a run down to $20,000 would be probable, and that is exactly what we got.
Price hovered around the 1D 50 and 200 EMAs before aggressively breaking below, raiding 1D sell-side liquidity with momentum, signalling further bearish prices.
The most likely place short-term support would be found would be as we tested discounted prices, fair value gaps, and previous unmitigated bullish order blocks, which is what we got at just below $20,000.
Now we expect either continued bearish trending of price down into a deep discount around $18,000. Alternatively, a retest of the daily 50 and 200 EMAs after a bullish retracement could set in motion selling at value for deeper bearish trends.
Traders saw Ethereum's low volatility to have been caused by the anticipation of the upcoming Shanghai hard fork after a series of delays, finally ending the week with a drop below $1400. Ethereum’s futures premium moved to 3.1% down from 4.9% one week prior becoming more distant from the 5% neutral-to-bullish mark. Stablecoins had an impact too, with inflows to Ethereum L2s rising 5% to over $2B.
tl/dr:
ETH's clean manipulation pattern accumulated buyers and sellers to act as liquidity for its breakout below the 1D sell-side liquidity, which successfully played out. After reaching premium prices, and mitigating bearish order blocks positioned above 1D buy-side liquidity, we have now seen price aggressively breakout to the downside.
From the bullish perspective, however, this bearish move was anticipated given the aggressive bullish trend we saw initiate since the start of 2023, bringing price back to a place of discounted prices, accompanied by bullish order blocks and 1D sell-side liquidity to act as a value zone for buyers who anticipate a macro bullish cycle to enter their positions.
Moving forward, we expect either an aggressive bullish retracement into retesting the underside of the 50 & 200 ema for deeper bearish prices, or we continue our bearish run down into the value zone with no signs of retracement beforehand.
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