🧘♂️ALERT: Bitcoin Bounce, Explained
Market Meditations | October 28, 2021
+ Essential ETH, SHIB and FTM Analysis
It all looked a bit scary there for a moment, right? Are we in the clear? What’s the most important trends in the market? Read to find out…
?Top Crypto Headlines of the Day
☀️Full Market Analysis: BTC, ETH, SHIB & Trending Hot Coins
?Disney x NFTs
?Market Sentiment Quiz
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Our Market Meditations are longer format educational segments. Each letter features a Market Meditation which will deep dive and analyse a relevant crypto event, theme or tool.
? Dumps, Pumps & Dog Wars
Key thing to pay attention to is whether or not we can hold the $4k level.
Bitcoin lost $60k and therefore a lot of people expected us to lose $4k.
What we actually saw was a bear trap. Brief dip below and then close above the $4k level.
This bounce looks strong and we want to see a continuation.
From a fundamental perspective, investors remain hopeful that an Ethereum ETF will soon be approved.
Starting to see a series of lower lows and lower highs.
Want to see continuation above $62k at the very least and then confirmation at around $63.7k.
Without this follow through, we will just establish a downtrend with a lower high.
From a fundamental perspective, the downward price action has been attributed to leverage. Leverage has reached highs that we haven’t had since November 2020.
El Salvador has also recently come through with support: buying an extra 420 bitcoins.
Interesting number choice… 🙂
Price has skyrocketed. The recent dip has almost entirely been recovered in a matter of hours.
Best way to play these types of strong trends is with Fibonacci Retracements. Draw your lines and enter at the 0.236 or 0.382 levels.
If you’re not sure how to draw Fibonacci lines, check out our guide: Fibonacci Retracement ?
SHIB has some fundamental metrics going for it as well: listing on multiple exchanges, soaring open interest on derivatives exchanges and even it’s own NFT line.
We called this coin out a long time ago in our newsletter. Specifically, we recognised it is a trending project by looking at on-chain insights provided by Nansen.
The technicals are looking strong, with dips being bought back up again making trailing Fibonacci Retracements interesting. Of course, this strategy should only be used for as long as the trend is not invalidated.
Recently, Fantom is likely also seeing strength due to its ongoing developer conference. The conference is in Abu Dhabi and from October 25th – October 29th. It’s in one of the most prestigious UAE venues: the Emirates Palace and is partnered with names such as Binance and Red Bull. This is likely drawing good attention for the coin!
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? What Is Market Sentiment?
Which of these statements correctly defines market sentiment?
It is how sentimental traders and investors are towards an asset.
It considers traders and investors’ thoughts, feelings and moods regarding an asset. It will accurately reflect the value of an asset
It considers traders and investors’ thoughts, feelings and moods regarding an asset. It doesn’t always accurately reflect the value of an asset
?The Happiest NFTs on Earth
Recently, Veve announced that Disney will now offer NFTs.
Veve is a digital collectable business that operates on Ethereum’s layer 2 scaling protocol, ImmutableX.
Veve has sold over 1.9 million NFTs and has more than 50,000 active users.
The Disney brand is sure to boost Veve’s platform by driving new traffic to the site, now adding to Veve’s catalogue of Marvel and DC digital comics.
Disney’s NFTs will launch on November 12 where they will offer a “Golden Moments” collection. In select markets, every customer who purchases an NFT from the “Golden Moments: collection will receive 3 months of free Disney +.
Though this may not seem like the biggest news in the grand scheme of crypto and NFTs, this will surely raise awareness with a different crowd. It will now target both children and their parents as children will want these unfamiliar NFTs.
Similar to Disney, many others are currently creating NFT projects that will boost awareness such as the WWE NFT and the feature where photoshop will provide a “prepare as NFT” option.
3. It considers traders and investors’ thoughts, feelings and moods regarding an asset. It doesn’t always accurately reflect the value of an asset.
Market Sentiment Analysis tries to predict price movement based on market participants’ overall attitudes, but we would never recommend using it alone. Instead to be used in conjunction with other tools such as Technical Analysis and Fundamental Analysis.
If you want to find out more about how you can use this as part of your trading and investing toolbox check out our full Market Sentiment Guide.
??♂️✍️ Stories in this newsletter were written by Misael Calleja, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Gerasimos P.
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