🔴 Onchain Edge Index
📉 $BTC & $ETH: Zooming in from monthly to daily charts
🚫 US Legislation: Affecting FED's CBDC Plans
🔐 DeFi Security: New tools and protocols
🌐 Grayscale: Latest Ether ETF developments

Monthly 👀: Slightly bearish 📉🔴
Weekly 👀: Mildly bullish 📈🟡
Daily 👀: Not promising 📉🔴
🚀 Next support at $25k.

The Onchain Edge Index has dropped slightly since last week, which is good.

Let’s start the market spotlight with a high timeframe analysis on the monthly timeframe and then narrow it down to the daily timeframe. Remember, the higher timeframe indicates the leading trend over a few months. But it isn’t set in stone.

The monthly BTC view leans slightly bearish, indicated by a red sell diamond on the VMC—the blue wave indicator. I'm working on a tutorial about using it, which I plan to send out next week.

On the bright side, the VMC isn't in the oversold territory. It could take 3 to 6 months to see a yellow buy dot appear on the VMC. This depends on BTC's duration to consolidate and initiate an upward trend. Regardless, the long-term outlook remains somewhat bearish.

The weekly BTC chart is slightly bullish, showing a yellow buy signal. However, this signal could vanish if the price undergoes a significant correction by Sunday.

Unfortunately, the blue diamond buy signal has disappeared due to the substantial price correction.

The daily BTC chart doesn't look too promising; it features a red diamond sell signal. Take this as an indication of a bearish trend rather than a prime buying opportunity. Multiple red diamond sell signals can occur, and the price might still temporarily rise—don't be deceived.

The next support level is at $25k.

Is there a buildup of $BTC short or long positions?

Investors appear to be establishing long positions with a weak long bias.

➡️ The price trend for $BTC is ascending.

➡️ The volume trend for $BTC is somewhat inconsistent.

➡️ Open Interest has increased by +2.76% over the last 24 hours

BTC Monthly Returns

As we close out September, it's time to examine the month's returns to gauge how favorable October might be. Historically, September tends to be bearish, closing red 8 out of 10 times and green only twice.

However, the good news is that October generally performs well. In fact, if history serves as an indicator, the odds favor a green October, especially if September also closes in the green. Notably, in 2015 and 2016, October saw double-digit green returns.

ETH Analysis

Ethereum (ETH) has no distinct buy or sell signals. ETH has been on a downward trend since the sell diamonds appeared in July. However, a bullish divergence on the one-day timeframe warrants close observation.

The market is showing mixed signals, with BTC's midterm outlook appearing somewhat bearish despite more bullish indicators in the shorter term. Ethereum also gives off ambiguous cues, lacking clear buy or sell signals. That is why the current BTC price is considered in the don’t trade range.

As always, understanding the intricacies of each indicator, such as the VMC and sell diamonds, can offer valuable insights for future investment decisions. October may present might surprise us.

• US Bill to Ban FED's CBDC: The US House Committee passes a bill to prevent the Federal Reserve from creating a Central Bank Digital Currency, citing privacy and sovereignty concerns.

• The Mystery of DWF Labs: DWF Labs went from obscurity to the crypto limelight in just one year. Founder Andrei Grachev, once in logistics, now claims crypto trading success.

• Thailand's Crypto Tax Policy: Thailand plans to tax overseas income from crypto trading starting next year for residents staying over 180 days.

• Critique on DWF Onchain Activity: A tweet criticizes traders for continuing to trade DWF, warning that each move will become riskier.

• CroissantEth’s ERC-20 Experiment: A new ERC-20 token, $APX, has been deployed using ChatGPT, showcasing the capabilities of AI in smart contracts.

• Pessimism’s Monitoring System: This new open-source tool is designed to improve security by detecting and responding to several protocol threats, potentially bolstering DeFi security.

• Grayscale's Ether Futures ETF Filing: Coming off a recent legal win, Grayscale Investments files for a new ETF that will track Ether futures, signaling more institutional interest in Ethereum.

• Ledger's Controversial Recovery Service: Despite initial backlash, Ledger plans to roll out its private-key recovery service by year-end. The service will help users recover their private keys by splitting seed phrases.

• Proposed Ethereum Standard for Security Audits: A new Ethereum standard, ERC-7512, aims to enhance smart contract security by allowing on-chain verification of audit details standardizing how audits are conducted and presented.

• NFT Marketplaces Restrict Stoner Cats: Following SEC action, major NFT marketplaces like OpenSea and Rarible restrict trading of the Stoner Cats collection, raising questions about regulatory impact on NFTs.

• Canto Migrates to ZK L2 on Ethereum: Canto announces it is building on @0xPolygonLabs to migrate to a ZK Layer 2 on Ethereum, focusing on Real World Assets.

• High Revenue from Memecoin Trading Tools: The "Monkey see, monkey do" memecoin trading bot generated 14.5 ETH per day in September, totaling over 750 ETH in three months.

• Improving Airdrop Designs: The article discusses the need for better-designed airdrops to ensure the customer lifetime value exceeds the customer acquisition cost.

• DeBank's Paid Features Launch: DeBank is set to launch its new paid features on September 27th, discontinuing the beta version of its Pro Features.

• Arbitrum Odyssey: Reignited: A 7-week program allows users to explore the Arbitrum ecosystem and collect custom badges for completing missions.

• Optimism's Private Token Sale: Optimism initiates a private sale of 116M OP tokens under a two-year lockup. Tokens can be delegated for governance and come from the Foundation’s original budget.

• Aave's Security Update Across Networks: Aave aims to add a FreezingSteward as the riskAdmin across its V3 deployments on multiple networks to maintain security.

Here’s a sneak peek of the VMC indicator tutorial I’m writing. It looks complicated, but will be easy to understand and implement.