As bitcoin rallied to an all time high of $66,000 on Wednesday, the market capitalization for all cryptocurrencies has pushed to a new record of $2.7 trillion, according to data from CoinGecko. A beautiful day for crypto.
🌇 BTC, ETH, SOL TA and Metaverse Insights
🧩 Trader Type Puzzle
☀️ Magic Eden x Arbitrum: More Solana Builds & Projects
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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.
🚀 Bitcoin ATHs: What Next?
We’re hearing all sorts of price targets, including $100k BTC by as early as the end of the year.
Lower Time Frames Technical Analysis
Hit a peak at $67k. Seeing a bit of a lower high here.
Then we saw a monstrous crazy wick to around $59k.
This is not normal price action and it’s difficult to trade off of. Which is why we are going to factor it out of the following assessment: a close above $64k will be reasonably bearish and a close above $67k will be reasonably bullish.
An understanding of the market structure seems more appropriate than an arbitrary price target.
A lot of this recent rally is being attributed to the approval and consequence of the launch of the ProShares Bitcoin Futures ETF on the NYSE.
The regulatory approval alone was a great positive development and this was only amplified by the ETF’s performance: the ETF hauled in $570 million of assets on its first day, while garnering an astounding $1 billion in trading volume. In fact, it’s one of the most successful ETF launches of all time.
Perhaps it is unsurprising therefore that institutional interest continues to flow through, with $2.2 trillion asset manager PIMCO recently announcing plans to buy more crypto.
ETH looks set to outperform BTC this time around.
Ethereum’s previous high was around $1.2k and once it broke that, it only went around 3.3x.
Given ETH is the higher Beta asset, if it didn’t outperform BTC last time, it may do so this time. Values such as $10k ETH therefore come into play.
Entering the market now? We would consider using $3.4k as a base and then trailing Fibonacci Retracements. The strategy is: follow the move up and enter every time the price hits the 0.236 or 0.382 level. One of the methods of entering an already climbing asset.
Indeed the options market is also leaning bullish, with investors buying higher strike call options on hopes that the U.S. regulators may next approve a ETF tied to ether futures contracts.
Benefitting from the alternative Layer 1 narrative.
Key breakout at $170. A play we have shared before and hopefully Market Meditators were able to get in on the breakout.
If you missed the breakout, again, trailing Fibonacci Retracements are an option here.
$190 is a resistance level albeit not a strong one.
4️⃣ What’s the Meta With You?
There are so many amazing metaversal projects being developed and we have recently heard that Facebook is planning to change its company name next week to reflect its focus on building the metaverse, according to a source with direct knowledge of the matter.
Facebook already has more than 10,000 employees building consumer hardware like AR glasses that Zuckerberg believes will eventually be as popular as smartphones.
In July, he told The Verge that, over the next several years, “we will effectively transition from people seeing Facebook as primarily being a social media company to being a metaverse company.”
New projects, big companies getting involved and lots of new funding in the space through Top Tier Funds. The Metaverse is a trend to keep an eye on.
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⚖️What Trader Type?
Which of these statements describes a swing trader?
A trader who looks for short, minimally profitable opportunities in the market that can add up over time.
These traders usually pick a side at the beginning of the day, acting on their bais, and then finishing the day with either a profit or a loss. These kinds of traders do not hold their trades overnight.
Someone who enjoys staying in a trade for as little as a few hours to potentially weeks.
This trader has a much longer time frame in mind. You could be in a trade for months or even years if your conviction is strong enough.
🤝Raydium and Magic Eden Collaboration
Last week, Solana heavyweights Magic Eden and Raydium announced a deep partnership that looks to push forward the Solana NFT ecosystem.
Raydium is an automated market maker that is built on Solana and utilizes the central limit order book of Serem.
Magic Eden is one of the fastest growing NFT marketplaces on Solana. During Magic Eden’s launch on September 18, their trading volume hit a high of 50,000 SOL or $7.5 million. Since the launch, the total trading volume has now surpassed 350,000 SOL or $52.8 million.
So what exactly is happening?
Magic Eden users will be able to use any token traded on Raydium to buy NFTs, making the marketplace one of the first to support purchases from a non-blockchain native token (such as ETH / SOL).
NFTs will be tradeable on the Raydium website and all projects who list NFTs will be dually listed, meaning that they will be listed on Raydium and on Magic Eden. This will increase engagement and liquidity for users.
The two projects will continue to look for innovative integrations that improve users’ experience, an exciting prospect in the context of the developing interaction between NFTs and DeFi.
Raydium’s partnership with Magic Eden is hoping to positively impact all parties involved. It has already provided NFT participants with never seen before features and this trend looks set to continue.
3. Someone who enjoys staying in a trade for as little as a few hours to potentially weeks.
Swing traders tend to stick to the longer time frame of a few hours to weeks.
They like the analysis aspect of trading - finding patterns that develop and exploiting them like a cunning strategist. Because they place fewer trades on a daily and weekly basis, losing trades could have more of an impact on their psyche, so keeping their longer term goals in mind and sticking to the plan are imperative.
If you want to find out more about the other types of traders check out our “What Trader Are You?” quiz.
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🌎🧘♂️✍️ Stories in this newsletter were written by Misael Calleja, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Gerasimos P.
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