🧘‍♂️Major Weekend Update

Market Meditations | June 7, 2021

Now this is seriously good news. Let’s go.

Dear Meditators

Welcome to another week in the crypto markets.

The Miami Conference is over and it’s time to get back into analysis mode.

Luckily, you’re not alone.

Market Meditations will be reviewing and writing about the latest market conditions and updates alongside you.

Read, enjoy and share with your network. Let’s all build wealth together.


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A Quiet Weekend. Or Was It?

? Markets appear quiet on the surface. Particularly when a lot of market participants are either in Miami or watching the Logan Paul vs. Floyd Mayweather fight (or perhaps both?). 

However, there have been key fundamental and technical developments that, if you were paying close attention to, you would have noticed. Or, if you are subscribed to the Market Meditations newsletter. Because, as always, we’re about to give you a full recap ?

Latin America Love 

Lots of positive fundamental news coming out of Latin America recently.

The continent has struggled with debt and hyperinflation for a long time, and thereby their interest in cryptocurrency (specifically, for it’s inflation hedge properties) does not come as a surprise.

Important headlines for crypto investors and traders:

?? President of El Salvador Says He’s Submitting Bill to Make Bitcoin Legal Tender

Why do we care about this news?

  • Because the bill’s approval would likely make El Salvador the first nation to adopt a bitcoin standard.

  • Significant in its own right and particularly significant should it lead to a domino effect, whereby other countries follow suit.

  • This news is helpful for those with a stake in the long term growth of bitcoin but consider this quote:

Over 70% of the active population of El Salvador doesn’t have a bank account. They’re not in the financial system,” – Jack Mallers, founder of the mobile payments app Strike said at the Miami conference on Saturday.

To add to this: 20% of the country’s GDP comes from remittances, which are payments sent by Salvadorans living abroad back to the country.

Without access to the financial system, you can’t earn interest nor can you take out a loan. Let us not neglect the socioeconomic benefits of the crypto revolution and cryptocurrencies’ powerful role in redistributing wealth ☝️

At 39 years old, El Salvador’s president, Nayib Bukele, is savvy with social media and extremely popular with his constituents—his approval rating is more than 85%. This bitcoin bill should easily pass.

We’ve also had news of Paraguay hinting at a big project involving Bitcoin and Paypal.

This is just a few of the fascinating insights and developments we saw at the Miami Conference. 

? Tomorrow, we will be sharing a FULL RECAP OF THE MIAMI CONFERENCE for our readers. We will share all the relevant news and showcase our favourite photos, tweets and statements from your favourite twitter personalities. Make sure you’re on our free email list to receive this. ? Free subscribers get full access to:

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  • Fundamental and technical analysis to compliment your trading/investing

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BTC/USD

We keep our updates realistic. Sharing what you need to hear, rather than what you want to hear. 

There have been no real updates in terms of Bitcoin price action since last week.

We stay in a range bound between $34k – $40k.

The two scenarios we are keeping a watchful eye on: 

1️⃣ A breakout above $40k and test around the $45k level (where we expect big resistance and potential short plays confluent with a 0.5 retracement of this most recent move down)

2️⃣ A breakdown below the $30k level (with opportunity for a potential high risk scalp with tight stop losses to the $34k level)


Solana Summer & Outlier Pumps

DeFi has been growing as a powerful narrative since the BTC dip.

With many analysts drawing a distinction between previous dips stating that on this occasion, the fate of altcoins will be less tied to Bitcoin’s price action.

The idea being that DeFi tokens have intrinsic value and use cases that make them useful in their own right.

⚠️ It is of our opinion that BTC dips will continue to heavily impact altcoins and that good risk management is prudent.

Our reasons:

  • Many people will lose interest in a prolonged bear market

  • VC money isn’t as easy to come by

  • Retail investors are not as interested

  • Narratives aren’t as sticky because they don’t get enough attention.

That being said, it is worth looking at altcoins for opportunities within our portfolios. Specifically, the game becomes such that we seek to find ‘outlier pumps’. Let’s take Solana as an example:

The Technicals:

Potential short opportunity at the 0.618 level. The rest of the market is stationary and reasonably bearish so short might make sense here.

Alternatively, if we do not reject off of the 0.618 level, we would have retraced most of the move down. Bringing into play the possibility for a major breakout and continuation of Solana.

? An outlier pump is where, during more bearish market conditions, certain assets go on runs by themselves without the rest of the market following. These pumps behave differently compared to bull market conditions: steeper retracements, dumps, more volatility and shakeouts but regardless, they do perform well.

Why look for outlier pumps alone? Subscribe to our free newsletter and we will keep you informed ?

The Fundamentals:

The team behind the Solana blockchain is in the process of raising a large sum of money, according to a report by Decrypt.

The project — which is best known for powering FTX’s decentralized exchange Serum — could raise anywhere from $300 million to $450 million from the raise, but the exact figure is unclear from Decrypt’s report.

We’ve been bullish on the Solana ecosystem since SOL was at just $3. It is worth clarifying that we are not bullish purely on the ‘bid to take on Ethereum’ narrative. As we have said in the past, we don’t believe the outcomes are quite so binary.

  • Different technologies excel at different things. Decentralisation is a spectrum, blockchains actually have a web of trade-offs they can choose to make on multiple spectrums. 

  • Ethereum focuses on maximising decentralization, trustlessness and accessibility of the state machine. 

  • Solana aims at making slight trade-offs in these, and how state is stored, in order to optimize for raw processing power. 

  • And so, direct comparisons are not only unhelpful but actually nonsensical.


ETH/USD

Also within the same levels as before.

Slight bit of strength in the structure with higher lows.

Should the current bounce head into the $3k resistance level, we could expect a breakout and a test of the $3.2k level. Potential long opportunity here.

Outside of that, we’re more inclined to watch Bitcoin rather than Ethereum. For now.


On Mondays, our ‘Scan The Week’ section is designed to show our community what events and headlines we will be keeping an eye on.

Monday, 7th June

  • Apple WorldWide Developers Conference ?
    Apple’s big developer conference starts today with the keynote address at 1pm ET (you can watch here).

  • The first Nexo Governance Vote is now officially open! ?
    Are you for or against the proposal for Daily Interest on $NEXO Tokens? Have your say via the Nexo web platform or mobile app over the next 24 hours. 1 NEXO Token = 1 vote. Not using Nexo? ? You can use our link to start earning now.

Tuesday, 8th June 

  • Moonbeam Universe: Connecting Our Community & Ecosystem ?
    Moonbeam Universe is a series of meetups that aims to connect their community with the teams behind the projects building on Moonbeam and get a feel of the activity and integrations to expect when Moonriver and Moonbeam launch later this year. The next meetup will be on 8, June at 16:30 UTC.

Wednesday, 9th June

  • Mina Protocol AMA ?
    Evan Shapiro, MINA Foundation Board Member and Cofounder of Mina Protocol will host a Telegram AMA on 9 June at 4:00 UTC to answer questions and explain the developments that lie ahead.

Thursday, 10th June

  • Consumer Price Index Data ?
    Few metrics reveal the state and health of the economy like inflation does. Fewer still cause investors and traders so much panic. Inflation data will be shared on Thursday. Prices in May are expected to increase even more than they did in April. 

Friday, 11th June

  • Soccer European Championship Starts ⚽️
    A joyous day for soccer fans.


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Disclaimer: 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.


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