Last Week Recap
- Large moves up across the board after FOMC and better than expected big tech earnings.
- U.S. GDP declines for the second quarter in a row, a technical recession but dwarfed by the low unemployment rate
- One of the top three cryptocurrencies in the world based on ... More deployed the 10th “Shadow When a new version of a blockchain is created, resulting in ... More” and set the final testnet (Goerli/Prater) merge for early August
- Tether CTO: we plan to support ETH 2.0
- Charles Schwab set to launch crypto-themed ETF on NYSE
- Aave Acronym for “Decentralized Autonomous Organization” More votes to approve the creation of GHO A cryptocurrency that aims to maintain a fixed, unchanging m... More, and it plans for GHO to function as an overcollateralized A cryptocurrency that aims to maintain a fixed, unchanging m... More similar to MakerDAO’s dai (DAI)
- Polygon’s Q2 data shows a significant growth in the ecosystem
- Babel Finance lost more than $280 million in The very first cryptocurrency created in 2008 by an individu... More and ether due to its proprietary trading failure, according to the The blockchain is made up of blocks. Each block holds a hist... More
- Coinbase shares fell 20% after Bloomberg disclosed that the SEC was investigating it
- Facebook Parent Meta Loses $2.8B on Metaverse Division in Q2
- VIX is hovering around the trend it started 5th of November. With the market already seeing a large relief rally, it’s getting quite a bit more dangerous now as VIX will most likely see some interaction at current levels. This means equities and crypto could range or even drop back a bit. (It doesn’t necessarily have to be bad, just a bit of consolidation).
- Sentiment definitely indicates most people missed the move and are/have rushed into the market. These late longers will most likely get flushed.
Open Interest and Funding Rates
A loan of sorts offered by a broker on an exchange during ma... More has been fairly modest on the move to 24k. After FOMC, a lot of hedges came off in A contract to buy or sell an asset at a later date with the ... More which helped build the momentum for the rally to 24k.
BTC Weekly View
- BTC is still one of the only major coins that haven’t retested the low wick from the LUNA crash (25446$). This is in line with what we’ve been writing about the hidden ALTBTC run happening under the hood.
- For now, BTC is still in range, things can get more interesting on BTC once it reclaims 25.5k else, ALTBTC is still more interesting. While BTC takes its time to figure out all the possible overhead in liquidations from lenders of the 3AC meltdown.
ETH Weekly View
- Where BTC couldn’t even get to the LUNA crash low, ETH is consolidating right on it. Not to mention for ETH, this is a fairly large area as it’s not only the LUNA crash low but also the summer 2021 crash low/bottom. From a price point of view, it’s a fairly large wick area over 4 times around 1.7k. The chances of getting some rejection/stalling are high as these high-volume areas generally take time to reclaim.
- ETHBTC has seen some slow down last week but still not a single sign of weakness. With the merge inching closer and closer and the Goerli testnet upgrade going live early this month, we expect the merge trade to continue. Coins indirectly benefit from the merge (LDO, Layer2’s…) are also massively outperforming the market.
- With ETHBTC catching strength and TOTAL2BTC likely pushing ATHs soon, there’s a fairly high possibility we’ll see older major coins run on BTC pairings as soon as ETHBTC gets above the 2021-2022 price structure (Over ±0.09).
TOTAL2 – USD Market Strength
TOTAL2 is still pushing the range low of 2021, reflecting the struggle in ETH with reclaiming the 2021 bottom. This again means that there’s a likely correction (which started this weekend) on dollar pairings for most coins. The clue is to keep a close eye on the BTC ratio. Coins that can hold or even slightly drift up on BTC pairings will likely be the first runners after the current counterwave/consolidation.
TOTAL2BTC – BTC Market Strength
As most will find surprising with the current market, TOTAL2BTC is almost at ATH’s. A price structure that has been forming since early 2021 and is nearing completion. The last time we had this was the beginning of 2017, which led to the massive ALTBTC bull run.
In 2021 A category that includes all coins other than Bitcoin, the f... More never broke the ATH ratio against BTC. But as mentioned in previous weeks, with BTC trading at lower valuations and having some muddy waters ahead with the 3AC <> Lender blow up, it makes sense for A category that includes all coins other than Bitcoin, the f... More to push it and make new highs vs BTC. This does not mean alts will automatically hit new USD ATHs!
SH*TPERP/ALTPERP is also showing strength & finding support. This means that several lower market Short for market capitalization. More coins are finding significant strength, and participants are seeking “gems” again.
- ALTBTC is where the market strength still is.
- ETH retesting LUNA crash low and summer 2021 bottom, expecting large price The fluctuation in an asset’s price is measured by its vol... More near the merge
- DeFi total TVL recovered from a low $72B in May to $89B, a 23% surge, and One of the top three cryptocurrencies in the world based on ... More layer 2 scaling solutions Polygon, OP, and Arbitrium are contributing a large growth, the increasing TVL gonna help the total DeFi sector performance
- Short for Non-Fungible Tokens; digital assets which are uniq... More sales still hold steady, but trading The total amount of currency being traded in the open market... More is down further, which impacts the metaverse sector and A unit of value used for various purposes within a crypto ec... More trading The total amount of currency being traded in the open market... More
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