Disclaimer: I am not a financial advisor. Anything said in this report is strictly opinion and should not be used as advice. All actions are at your own risk.
Crypto Market Update and trading digest 11.9
Insight
Don’t get lulled to sleep
It’s a quiet day in the cryptoverse with many major protocols staying still. The market is a little frothy from the fear and greed index at extreme greed. BTC stochastic is in the overbought zone. The healthy route here would be from BTC to revisit the 63,500K support before climbing up higher. Fast climbs are typically less resistant to large sell-offs. But I’ll remind you that Bitcoin is in price discovery mode and can at any time start climbing quickly again.
Today is a good time to keep an eye on things. Don’t overtrade and wait for good entries. Opportunities into Layer-1s could present themselves in the coming days. Yesterday I showed a flow of money into crypto, the ultimate goal is to stay a step ahead of the crowd.
Major News
· Apple CEO Tim Cook states he personally has crypto in his portfolio, but Apple has no plans to join other companies in adding crypto to the balance sheet.
· Ethereum Name Service token soars after a 500-million-dollar airdrop to users. On an interesting note, A wallet marked as Alameda has bought over 10K ENS tokens on Uniswap, valued at more than 500K. Could this be Alameda investing in ENS? Alameda is one of the top venture capitalist crypto investment firms. Domain names in crypto have been quiet and this could be a catalyst to bring attention to the space. You can purchase domain names for crypto at Unstoppable Domains and ENS.
· Discord to integrate Ethereum into its platform. This would follow Twitter integrating bitcoin wallets and NFTs, and Reddit to change Karma points into an ERC token. Discord has over 150 million users.
· SPAIN: Banco Santander is planning to release a Bitcoin ETF despite reluctance from the Spanish banking fraternity.
Market Update
· Bitcoin is down 1.50%. The market is a little overbought as stated by Stochastic and RSI. Traders are pausing to take some profits after a strong move upwards. A visit to the 63,500K support would be healthy for BTC.
· TOTAL is down .5% and TOTAL 3 is up .70%. Meaning some money flow is moving from BTC into Alts. This is a normal occurrence during pauses and small retracements in BTC. It means people are explorer the crypto space and buying some alts.
· Cardano (ADA) is beginning what could be a strong climb up. As was stated yesterday, the downtrend has been broken at the same time as the first DEX release, SundaySwap. If you were patient with ADA in the past weeks, now is when you start to reap the rewards.
· All other Major Smart Contract Platforms are slightly down today. It’s a good time to start keeping an eye on these to find good entries in what has been weeks of climbing. Look for strong bounces off upward trendlines. (ETH, AVAX, SOL, LUNA, BNB)
· Livepeer (LPT) a decentralized video streaming service is up 103% today and 203% for the week. The only news I could find is an NFT sale which Livepeer hosted with Glass Protocol.
Bitcoin Fear and Greed index 84 Extreme Greed
Bitcoin google trends 28
Bitcoin dominance 43.73%
Notable Events
· Polkacity (POLC) doing an AMA with most popular crypto-related Youtube tomorrow. Today it has been releasing NFTs for its Metaverse. I see a lot of shady advertising tactics going on with POLC. I personally would not hold this long term.
· Secret Network (SCRT) has a major “Supernova” mainnet upgrade tomorrow. On many occasions, buying pressures on protocols increase after major upgrades.
· Stacks (STX) Arties NFT Launch and NYCCoin go live tomorrow.
· Audious (AUDIO) to be listed on Kucoin tomorrow. AUDIO is something like a decentralized Spotify, to keep it simple. Keep this one on your radar, there has been a lot of news lately of music artist beginning to find more effective avenues to sell their content.
· Rumors are surfacing of Metamask to release an airdrop. If you haven’t used Metamask now is a great time to download it and try making some small purchases on Solana or BSC. Airdrops typically aren’t large but every once in awhile a platform is very generous to its users. (Uniswap 400 UNI tokens in 2020)
Trade Set ups
MANA
Dencentraland (MANA) is an active metaverse and currently has the largest marketcap in the metaverse sector. MANA has greatly benefited from Facebook’s major metaverse announcement last week. This sector has been hot but entries were hard to find and most had to sit and watch from the sidelines. Mana may be setting up for another move.
MANA has formed what looks to be a bull flag. Prices are consolidating in what can be a strong set-up. If the top downtrend line is broken with a strong green candle, backed by lots of volume, expect MANA to break new highs and enter price discovery.
Never forget to put stop losses on your trades. Risk management is the number one consideration in any trade.
NOOB Lesson of the day
Yesterday I had a long conversation of what constitutes a good entry into crypto. This is a very challenging question because it’s not a black and white answer. Entries are very dependent on the strategy you are utilizing. A day trader could be entering and exiting many times in one day and a long-term investor might only enter and exit positions a couple positions a year. Both can be effective strategies if used correctly.
If you are new in the space, I always recommend buying and holding for the long term in Bitcoin and strong layer one projects. As you become more comfortable with-in the space you can start exploring different avenues. A great strategy to begin with is Dollar Cost Averaging. It’s a very easy and effective strategy and you will most likely outperform a majority of people that are actively trading. You can find tons of info on DCAing if you google it or search it on Youtube.
Below I am going to present a watchlist of cryptocurrencies that are beginner friendly and, in my opinion, great long-term holds. Buying Ethereum has outperformed a large majority of cryptos. You can always see how a crypto has performed versus ETH using tradingview and entering them as a pair. DOTETH (polkadot\ethereum). Below is the list in no particular order.
Beginner Friendly Crypto List
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BTC
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ETH
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ADA
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BNB
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SOL
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DOT
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LUNA
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AVAX
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LINK
Thank you for all the continued support. Things are slowly growing, and I appreciate all the great comments and discussions. If you have any questions or input, feel free to message me on Twitter
@ TraderGabi.
Alright Fam, have a great day/night.
- Gabi
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