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Are we gearing up for one of the greatest crypto market pumps ever? Today’s technical analysis will focus on answering this question.
🚀 Top 5 Things You Need To Know About The Crypto Markets
📈 Essential Technical Analysis on: $BTC, $ETH, $SOL and $DYDX
🇨🇳 A Brief Overview of China FUD
📅 Our Crypto Scan The Week Calendar
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⏰ In A Rush?
Here’s 5 things you need to know about the crypto markets today:
Our Market Meditations are longer format educational segments. Each letter features a Market Meditation which will deep dive and analyse a relevant crypto event, theme or tool.
If you’re a regular Market Meditator, when you look at that chart, immediately you will ask yourself: what’s the market structure? Well, a good indicator is the lower highs and lower lows. A telltale sign of a bearish macro structure.
Big picture done. Next, a regular Market Meditator will go micro. Micro view reveals that we have held the $40k psychological support level and the 100 Day Moving Average.
Where would a regular Market Meditator go next? To the key question: what is needed to break the current structure we are seeing. To break a bearish macro structure, we’d like to see key resistance levels reclaimed.
We need to reclaim $48k for the current market structure to begin to shift.
At this level, there would be an opportunity for a breakout or retest play.
A more conservative level would be the $50k psychological level.
It comes down to a trader’s individual risk appetite as to how conservative they want to be; in this case, how high a resistance level they would like to see reclaimed before considering a play.
When it comes to Ethereum, we are simple souls. We care dearly about the $3k level. We are not so interested in trading Ethereum until that key psychological support level is reclaimed. Until then, over to the other many opportunities in crypto.
We regard Solana as the gift that keeps on giving; where there is Solana, there is sunshine. A lot of exciting developments on the Solana blockchain; particularly given the increased demand for NFT gaming and specifically, NFT gaming in a manner more affordable than that which we currently see on Ethereum.
Fundamentals aside, let’s look at some charts. Last time we wanted to see the $150 key level be reclaimed (it’s confluent with the 100 Day Moving Average). That would be a nice breakout or bounce play to $170.
Naturally, we would update and reflect on this strategy based on what BTC and ETH are doing. Which is why we start all our Technical Analysis with… a look at BTC and ETH!
Now, let’s talk about explosive altcoins. We’ve been seeing a breakout after claiming the $18 level. Remember, you can use trailing Fibonacci levels for playing breakouts. Draw them, buy at your preferred level (for instance, 0.382), and wait for the bounce thereafter. You can repeat this strategy for retracement entries.
An explosion like this begs the question: what about the fundamentals? There’s a few things we could call out about DYDX:
In June this year, dYdX raised $65 million in a Series C funding round led by venture fund Paradigm.
Off the back of Chinese regulations and Huobi and Binance’s decision to stop serving mainland Chinese investors, the crypto market is perhaps gravitating towards supposedly censorship-resistant decentralized exchanges like dYdX.
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😒Same Ban, Different Day
On Friday, news of a “new” ban on cryptocurrency in China flooded the headlines. Seems like déjà vu, right? For crypto newcomers, this might seem like a shockingly catastrophic event. But on the contrary, Chinese Bitcoin bans have become somewhat of a repeat offender. Looking back, this most recent regulation looks more like a broken record than a record-breaking event.
1️⃣ 2013: China bans its banks from handling transactions involving Bitcoin.
2️⃣ 2017: The People’s Bank of China tightened regulations to force exchanges to comply with anti-money laundering rules. Two of China’s biggest BTC exchanges temporarily halted the withdrawal of Bitcoin and Litecoin.
3️⃣ 2018: Five governmental bodies gathered to issue a warning about illegal fundraising via “blockchain” and “cryptocurrencies”.
4️⃣ 2021: China bans bitcoin mining.
5️⃣ 2021: China’s central bank calls all digital currency activities illegal and vows to tighten regulation.
Over the past eight years, headlines have popped up around Chinese crypto regulation without much variation in substance. By this time, it should be obvious; the cryptocurrency industry is not welcome in China. Headlines may have a negative short-term effect on the markets, but in the long run maybe it’s for the best. After all, the exodus of BTC miners to other countries significantly improved the blockchain’s decentralization.
It’s also odd that this news was announced on September 15th but wasn’t posted online until 9 days later. Some have speculated that this month’s options expiry, which occurred the same day, may have something to do with it. Irrespective of the reasons, the lesson this should teach is that everyone should do their own research. Cryptocurrency is an innovative technology, full of forward-thinking people. Filtering out the hype and fear to analyse the actual message is always best practice.
On Mondays, our ‘Scan The Week’ section is designed to show our community what events and headlines we will be keeping an eye on.
Monday, 27th September
👥 CoinAgenda Conference
The CoinAgenda conference series connects blockchain and cryptocurrency investors. Since 2014, they’ve held events in Asia, Europe and North America that have provided an exclusive way to learn and network with the industry’s leading founders and funds. This year’s CoinAgenda conference will be held between Sept 27-29 in Monaco.
🔥 FlareNetworks ' Songbird Airdrop is coming to the Crypto.com App & Exchange
Users who participated in the FLR distribution will receive SGB tokens in the same ratio once the technical framework is ready. You can use our link to download the crypto.com app.
Tuesday, 28th September
✅ Kraken Raydium Listing
An automated market maker (AMM) and liquidity provider plugged into Solana’s Serum decentralized exchange, Raydium enables its users to execute swaps, make trades, earn yields and participate in Initial DEX Offerings (IDOs). Trading will begin at approximately 15:30 UTC on September 28.
🇺🇸 Treasury Secretary Janet Yellen and Fed Chair Jerome Powell Speech
Yellen and Powell will testify before Congress on Tuesday and Thursday about the country’s policy response to the pandemic.
Wednesday, 29th September
Thursday, 30th September
🥞 PancakeSwap NFT Marketplace Launch
Development on the NFT Market is now in the final stretch, and should be ready to launch very soon. There are two initial phases currently planned: Phase 1: Buy & Sell approved PancakeSwap collectibles (PancakeBunnies and Pancake Squad) and Phase 2: Buy & Sell other collections.
🌎🧘♂️✍️ Stories in this newsletter were written by Kyle F., Misael Calleja, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Gerasimos P.
Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.
Disclosure. Some of the links we’ve included are affiliate, they give you rewards and discounts and earn us a commission. Additionally, the Market Meditator writers hold crypto assets. See our investment disclosures here.