FG Cheat Sheet 012522
Where is the bottom?
Don’t miss this weeks podcast where we discuss the declining markets, russia, and cryptos chance of a comeback.
CHEAT SHEET
What We Are Watching
We further breakdown our case for these cryptos here : What We Are Watching
Are you buying these tokens? Did you read our guide on how to buy them on Sushiswap and Uniswap? Got questions? Leave them in the comments.
Crypto News
Here’s Why Bitcoin Needs Proof-Of-Work and NOT Proof-Of-Stake
El Salvador Bought Yet Another Dip, Total Reserve Reaches 1801 Bitcoins
Vitalik Buterin talks Ethereum switch to Proof of Stake
Reducing Ethereum Gas Fee Relies on Sharding and Layer2 Rather than the Transition to PoS
The great renaming: what happened to Eth2?
Ethereum Foundation Kills 'ETH 2.0' in Favor of 'Consensus Layer' Rebrand
BTC Outlook
It’s just one candle, but yesterday was an important day. Tensions around Russia/Ukraine conflict have driven down US equities markets and crypto was dragged down with it. Monday saw a massive intra-day swing in the BTC price. This now looks like an outside reversal. This can often indicate a major trend change. However, US Equities futures are down over -1% overnight again so there could be more downward pressure on BTC still.
We are thinking it’s time to thinking about buying the dip.
Possible Course of Action
Scale into a long here buying any dips
If long, stay long and look for a retest of $40k
Could try shorting near $40k
The Bulls’ Defense:
An outside reversal can indicate a change in midterm price direction
The Bears’ Prosecution:
Russia/Ukraine conflict dragging down global markets
ETH Outlook
ETH’s price action from Monday does not show the same conviction that BTC does. Monday’s candle was not able to get higher than Sunday’s candle and it closed lower. This is not indicating a turn around in the same way BTC’s price has. ETH has consistently been correlated with BTC so if BTC goes up ETH will certainly follow. It is just looking like BTC will outperform ETH in the short term.
Possible Course of Action
Do nothing wait for continued consolidation
Could look to open a long here betting on a return to $3000
We wouldn’t recommend shorting since the price has already fallen so much
The Bulls’ Defense:
EIP-1559 has burned $3,997,560,244 (1,638,038 ETH) so far. Supply constraints should continue to have a positive impact on price.
The Bears’ Prosecution:
Russia/Ukraine conflict dragging down global markets
ETH is over priced compared to it’s competing chains (e.g. FTM)
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