🧘♂️WARNING: Is It All Over?
Market Meditations | December 6, 2021
We share the TRUTH about Bitcoin.
Survive the hellish weekend? Let’s look back at what happened first and then plan for the future.
What Happened to BTC? 3 Fundamental Reasons For The Dip
Key BTC and ETH Technical Updates
Undercover Analysis of Bitmart Hack
Our Essential Crypto Calendar
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❌ Down and Out?
It was another volatile weekend in Bitcoin’s unpredictable history the past few days.
BTC’s price took a nosedive to well below $50,000 and remains there.
As we scramble to make sense of the price action, some fundamental contributing factors may help explain this correction.
Federal Reserve Tapering. This is a normal part of ending quantitative easing (Q.E.). The Fed starts to decrease the number of assets slowly and progressively it buys each month. It was announced Wednesday that tapering will begin later this month.
Omicron Variant. Arguably a Black Swan event, the appearance of the emergent Covid strain has investors nervous, just as they were in March of 2020.
Holiday Season. Retail investors have a habit of cashing out of some of their investments as the year winds down. This is an expected and intuitive result, as many families look for ways to finance holiday costs.
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.
? Technically Speaking…
Price doesn’t go up in a straight line. This weekend was a powerful reminder of that law of crypto gravity.
However, structural changes don’t mean the opportunity to make money in crypto has disappeared. It just means you want to be a bit more cautious.
$60k and $56k were the key levels we flagged previously.
$56k was the support level we wanted to see hold, with the expectation of further downside if it was lost. Unfortunately, this seems to have materialised.
This calls for new levels to watch; an upper and lower bound which if broken will likely bring further upside or downside.
These levels are the $40k and $50k levels.
For the bulls, we want to see the $50k level reclaimed. Or consolidation / sideways action at the least. Worst case would be to lose the $40k support level.
So far, Ethereum is holding the $4k level.
In this aspect, Etheerum has shown relative strength against Bitcoin’s decline.
This remains a key level to hold, and should we lose it, our bias will need to be revisited.
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? BitMart Bit the Dust ?
Over the weekend, Bitmart was hacked for about $150 million.
On Saturday, a tweet from PeckShield (a security analysis firm) raised awareness of the possibility of the ongoing hack. One of Bitmart’s addresses showed a steady outflow of tokens to an address labeled on Etherscan as “Bitmart Hacker.”
Initially, Bitmart representatives denied the hack. On their official Telegram channel, they said the outflow of tokens were routine withdrawals and said that the reports of a hack were “fake news.” Soon thereafter, Bitmart CEO Sheldon Xia said that there had been a hack resulting in a security breach.
Events that unfolded:
Hacker used DEX aggregator 1inch to swap stolen assets for ETH.
He used a secondary address to “deposit ETH into a privacy mixer Tornado Cash thus making the hacked funds harder to track.”
Bitmart suspended withdrawals until further notice so that they could take care of their security breach.
It’s important to know that Bitmart is a centralized exchange!
Any exchange – centralized or decentralized – is at risk of being hacked. For this reason, it is important to have done sufficient research and know the risks associated with any investment. Though crypto hacks are becoming more common, this also means many exchanges will be forced to step up their security!
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, 6 December
Three games to launch today on Nakamoto Games. With one more game launching a week later and a total of 7 by end of year.
Australia’s leading blockchain event. APAC Blockchain Conference is the annual meeting place for Australia’s blockchain community and other curious minds from across the region.
Dotmoovs have announced that they will soon be introducing dance as their next sport in a mission to achieve Dance2Earn.
Wednesday, 8 December
Leading metaverse project BlockchainSpace is hosting their Balancer Liquidity Pool (BLBP) token launch starting Dec 8-11.
Web 3 ecosystem – DeFi, NFTs, Virtual Worlds, Gaming, Digital Fashion, DAOs, and more. Diffusion Digital is a virtual conference made up of pitches, talks, panels, and live Q&A.
Thursday, 9 December
As part of efforts to fully decentralise KeyFi and launch KeyFi DAO, an airdrop of 1,000,000 $KEYFI tokens will be disbursed. That’s a whopping 10% of total supply and approximately US$1.2m based on the token price right now.
Friday, 10 December
The Beldex network will be transitioning from Proof of Work to Proof of Stake consensus on the 10th of December, 2021, 06:00 PM UTC.
??♂️✍️ Stories in this newsletter were written by Kyle F., Misael Calleja, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Gerasimos P.
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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