FG Cheat Sheet 111821
Bitcoin falls -2.5% overnight
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Hal and Wasabi help Boomer understand their view on the future of Ethereum.
CHEAT SHEET
What We Are Watching
We further breakdown our case for these cryptos here : What We Are Watching
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Crypto News
Ontario teen arrested after allegedly stealing $46 million in cryptocurrency from one person in the U.S.
Fidelity approved to become Canada’s first institutional Bitcoin custodian.
CashApp to add Bitcoin Taproot support by December.
Exclusive: Ocado and Homebase to offer millions of Brits Bitcoin cash back
India to Reportedly Permit Use of Cryptocurrencies as an Asset
ConstitutionDAO Has Raised 8k+ ETH to Buy the Constitution at a Sotheby's Auction
Ethereum Wallet MetaMask Reports 21 Million Users, Up 420% Since April
(20th probably*)TIME Magazine to Hold ETH on Balance Sheet as Part of Galaxy Digital Metaverse Deal
Michael Burry from ‘The big short’ calls cryptocurrencies a “bubble” but says he doesn’t bet against the market
*editors comments unproven & sourceless
Bitcoin Outlook
Bitcoin has formed a sort of double top on the daily time frame. This has confluence with the RSI which has shown bearish divergence with the recent all time high. Shorting an RSI break below 50 has really only worked once in this last year. All of the other times buying the dip when the RSI fell below 50 resulted in gains. However, If you bought in June-July you would have experience a lot of suffering waiting for the price action to turn around.
I’m tempted to short this but I’ve chosen to just go to cash, get flat and watch for an entry. Of course as we’ve discussed on the podcast I’m still long some BTCs from $3k.
Possible Course of Action
If not long this could be a good entry
A short with a price target of $50k could work
If already long consider reducing exposure
The Bulls’ Defense:
Potential bull flag forming
Price bounced off 0.618 fib retracement
The Bears’ Prosecution:
Price weakness could see $50k be retested
ETH OUTLOOK
ETH has a simpler setup than BTC. The price is going up and to the right with large periods of consolidation. The recent price mark up has ended and now consolidation has begun. You will notice that the price is now near levels where it topped out in late May.
Except the price to consolidated around $4000 with possible volatility to the downside. This is probably a good place to take some profits and observe.
Possible Course of Action
Take profits if long since early October
Get long if already flat
A short down to $3800 could work
The Bulls’ Defense:
EIP-1559 has burned $3,901,803,933 (933,390 ETH) so far. Supply constraints should continue to have a positive impact on price.
The Bears’ Prosecution:
Price has lost momentum, could consolidate down to $3500
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