Overview
· Market Update
· Market Insight: Time to buy
· Strong Buys During the Dip
· Major Market News
· Notable Events
· NOOBIES: History of Bitcoin pt.1
Market Update
· Bitcoin (BTC) is slightly up today and volatility continues to be high, as positioning for the Nov 25 futures expiration continues.
· Ethereum (ETH) has a strong rebound off the 4k support level, up 6% today. Eth supply reserves are at a 3-year low of 17.6k.
· Total Market Cap (TOTAL) is up 2.55% as investors are reentering positions. Total Market Cap minus Bitcoin (TOTAL 2) is up 3.35% as most new funds entering crypto are going into Ethereum.
· Major alts are beginning to stir up. SOL +3.6%, DOT +3.8%, LUNA +2.75%.
· Fantom (FTM), which has been quiet in recent weeks, is up 20%. FTM may be beginning to wake up for another run. Fantom is a strong active project.
· Avalanche (AVAX) is cooling off with a -7.5% dip. There are signs of retail entering the space. Gas fees up to $10 have been reported, further lowering sentiment.
· Crypto.com (CRO) continues its strong uptrend, up +15.7% after winning the naming rights to the Staples Center a week ago.
Bitcoin FEAR and GREED Index 33
Bitcoin Google Trends 40
Insight
The futures expiration on Nov 25 still looms over the market, but risk has been noticeably reduced as derivative positions are significantly more balanced than a few days ago.
If you compare Friday’s report with the numbers above, there have been a large increase in PUT (short) positions in options. The recent dip has injected fear into the market and leveraged investors are beginning to balance out their one-sided long positions. Overall leverage is very high in the derivatives space, but that could be due to the large amount of institutional money. MAX PAIN continues to be 57k in Bitcoin, and one would expect price to stay relatively close to this price through Friday’s futures expiration. Opening positions near 56k continues to be efficient in accordance to examined metrics. Friday’s report goes into depth about these metrics. It’s highlighted that the Fear and Greed Index is at 33, which is near optimal for buying pullbacks.
Signs that the bull market will continue are very strong, as some altcoins (alts) in the space refuse to wait until Friday. SAND +78%, CRO +86%, EGLD 53%. Alts are being led by Play-to-Earn games and Metaverse tokens. Play-to-Earn as an overall category is up 54% today. Games and Metaverse tokens showed a lot of strength during the overall market slide in May and August. They are less affected by recent market conditions. Expect this trend to continue as wider adoptions continue. Owning P2E or Metaverse tokens could aid in diversifying risk in a portfolio.
Strong Buys During the Dip
The following tokens dipped in the recent sell-offs and show strong signs of rebounding quickly. This metric is based off volume, price action, and overall project rating. These projects have a strong case for growth in the long-term.
Take size into consideration when investing in the different levels. Low Risk/Reward can be the largest proportion in a portfolio and High Risk/Reward should be the smallest portion, as these are extremely volatile positions that can lose up to 90-95% if the market has a complete sell-off. Always use stop-losses on any position opened in this later stage of a bull market.
Major Market News
· The Mt. Dox settlement will release 141,686 Bitcoins into the market soon. This will add to the current fear, which is getting mixed sentiment from investors. Rekt Capital claims that BTC could fluctuate for the rest of the month.
· Pokemon Go is entering the metaverse space after a $300 million investment from Coatue.
· Bitcoin exchanges see large deposits as reserves hit 3-year lows. In a mix bag of activity, a lot of whales are depositing large sums of Bitcoin into exchanges as a large outflow of bitcoin continues. This will add to volatility in the short run.
· Turkey Lira goes into freefall as President Erdogan pushes to keep interest rates low. Bitcoin interest in Turkey enters an all-time high.
· Ardana partners with Near Protocol on Cardano Bridge infrastructure. This will allow asset transfer between the two major protocols. It is recommended to keep an eye on recently released Ardana (DANA) token as the protocol is making important moves.
· US banking regulators plant to publish crypto guidance throughout 2022. This will probably be closely related to the FATF’s “Guidance on Crypto”, which will inevitably have a strong influence on crypto regulations for years to come. Here is a great video to keep you up to speed.***
· Citigroup appoints a new head of digital assets as it considers 100 new hires. News like this is becoming more common as large banks are beginning to strongly participate in crypto.
Notable Events
· “Land Sale” event on Binance NFT and Dvision on Nov 24 @ 1100 UTC. Each platform has its own participation conditions
· Swipe (SXP) is having its Final Testnet Launch today.
· Qtum (QTUM) is having a halving event on 1 Dec.
· Cardano (ADA) is having its PAB Update. This could potentially be a turnaround point for ADA price.
NOOBIES lessons of day: History of Bitcoin pt.1
Where did Bitcoin originate
The ideas surrounding Bitcoin have been around since Cypherpunks in the late 1980s discussed creating a cryptograpthic currency that could not be altered or traced. This community advocated using technology as a route to social and political change and improvement.
Originally, cryptography was practiced only by the military and spy agencies until about the 1970s when the US government published the Data Encryption Standard (DES). A cryptograpth named David Chaum is credited with being the father of the cypherpunk movement with the publication of “Security with Identification: Transaction System to Make Big Brother Obsolete” (1985). Without going too far into cypherpunk history, we move on to Bitcoin. If you would like to learn more about cypherpunks press here.
Birth of Bitcoin
On August 18, 2008, the domain name of bitcoin.org was registered, and on October 31st, that year a paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” was posted on the website and cryptography mailed to those interested. The publication described a “system for electronic transactions without relying on trust.” This is considered the Bitcoin Whitepaper. This whitepaper is a recommended read for any person interested in Bitcoin and Cryptocurrencies in general. Consider this your homework.
On January 3, 2009, the bitcoin network was activated and the first block of bitcoin worth 50 bitcoins was rewarded.
Tomorrow, I will introduce you to the father of bitcoin, the mythical figure of Satoshi Nakamoto.
Tomorrow
· Continued market observation
· Practice of patience
· Deep Dive in a protocol
· NOOBIES: Bitcoin History pt.2
Thanks for reading the report. I hope you’re enjoying the holiday week. I’ll continue to keep you updated while you enjoy time with your family and friends. Consider following me on Medium for further support. If you have suggestions feel free to contact me. If you would like this report sent to you directly first, message me your email. TY.
Gabi
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