🧘‍♂️ALERT: Crypto With Potential

Market Meditations | February 4, 2022

Key Level To Watch

Dear Meditators

A slightly greener day in the markets. Euphoria tries to creep in but it’s essential we maintain our focus. 

Today’s Meditations:

  • Top Headlines 

  • ETH, SOL and AVAX Technical Analysis

    • AVAX → Crypto With Potential

  • Dangerous New Malware

  • Tezos Tax


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⏰ Top Headlines


☄️ A Journey Through Space, Time and Charts

1️⃣ ETH/USD

Macro Structure: Trend remains downwards. Easy to get pre-maturely bullish in these conditions. Keep your wits about you.

Key Support: Just bounced off $2.4k support.

Key Resistance: Coming up at $3k and the 30 Day Moving Average around $2.9k.

Highest Probability Bet: Downside continuation. Shorts are interesting to those who don’t want to fight the trend. To get confirmation of upside continuation we have a long way to go. Claiming $3k would make our bias neutral. Wanting to get about $3.4k to start shifting the market structure (this would be the first lower high to break).

2️⃣ SOL/USD

Macro Structure: Strong downtrend.

Key Support: Bounce off a small area of support at around $79. The psychologically important level of $90 has also held well.

Key Resistance: Have just rejected off the 0.382 level of the recent move.

Highest Probability Bet: Too early to be bullish. Need to reclaim the $130 level just to get to neutral.

3️⃣ AVAX/USDT

Macro Structure: Structure is less bad than the others. Has not retraced as hard. Looking more neutral. Moving Averages recently crossed (30 Day and 100 Day Moving Average).

Key Support: $60.

Key Resistance: $95 (resistance and also paradigm shift).

Highest Probability Bet: Opportunity above $95 to build momentum.


?Malware Bites!

Crypto users have a new cybersecurity threat on the horizon. Commonly used browser extension wallets, like the popular MetaMask and Coinbase Wallet, are prime targets for the malware.

Many users patronize browser extension wallets for convenience when storing crypto because they seamlessly plug into so many platforms and websites, but at the cost of convenience comes increased risk.

  • A new malware, dubbed “Mars Stealer”, is a significant upgrade to a relatively well-known iteration, the Oski trojan, which showed up in 2019.

  • The goal of the code is to steal information from over 40 browser-based cryptocurrency wallets in addition to some two-factor (2FA) authentication extensions.

  • Among the vulnerable wallets are popular choices MetaMask, Nifty Wallet, Coinbase Wallet, Binance Chain Wallet and Ronin Wallet. 

  • Most browsers can be targeted by the malware, with Chrome, Edge and Brave all on the list. 

  • It’s been reported that the current dark web price for Mars Stealer is around $140, making it an easily accessible and widespread security concern. 

When visiting file-hosting websites or downloading torrents, it’s always best practice to exercise some additional vigilance. The transference of files is one of the most popular ways for bad actors to gain access to sensitive information. 

Making money in crypto is only half the battle. Protecting it requires just as much diligence and effort. If you’d like some peace of mind, take a look at our security guide here.


?The Tezos Tea Party

Crypto can bring many surprises to both the new and old investor, one of those being in the form of taxes owed. Even tax professionals make mistakes and find it difficult to navigate crypto tax laws. A new investor could be in for a doozy the first time they file taxes on digital assets; new legislation is always around the corner and interpretation can differ greatly.

A Nashville couple has experienced this first hand after the IRS required they pay taxes on crypto earned from staking on the Tezos blockchain.

  • The couple had not sold any of the crypto in question but were required to pay taxes on their earnings as though it was income, (like dividends on securities) so they sued the IRS.

  • The IRS offered the couple a refund on the unliquidated crypto earnings which were previously taxed. The couple refused the refund, in an effort to set a legal precedent.

  • Josh Jarrett, the tax-payer in question called the refund offer “great news at first glance, but until the case receives an official ruling from the court, there will be nothing to keep the IRS from challenging me again on this issue. I need a better answer.”

  • Congressmen from the US House of Representatives wrote a letter to the IRS in 2020 asking for clarification on staking rewards.

The answers they seek could still be a long time off as the hearing is set for March of 2023.

Meanwhile, another bill has been re-introduced in Congress to allow for non-reporting on personal transactions where the capital gains are less than $200.


? Why It’s Ok to Get Rugged with Diran

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Diran is head of data engineering at Messari.


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??‍♂️✍️ Stories in this newsletter were written by D. Beverly, Kyle F., Max P., Nick T., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Ellen B.


Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here. 

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