#003 – ETH's Major Buy Walls and BTC's NVT Indicators

#003 – ETH's Major Buy Walls and BTC's NVT Indicators

GM! This is what we will be covering today.

1. 💵 BTC price: Key support at $25k, resistance at $28k; current market status makes it hard to predict short-term trends.

2. 🚫 BTC's current state: Not advised to trade but to find opportunities in the accumulation range; volatility might increase due to Powell's speech, affecting high-leverage traders.

3. 🔔 BTC indicators: NVT golden ratio signals a potential market bottom, suggesting accumulation rather than exits.

4. 📉 ETH update: Current price at $1653, moving to the golden pocket buy zone; substantial ETH buy walls are set at $1550 and $1400.

5. 🚀 Project highlights: 1inch Network's deployment on Coinbase's Base network and Bitstamp ending ether staking in the U.S.

6. 🔄 Crypto community insights: Emphasis on rethinking crypto incentives for mainstream adoption, learning from Web2 loyalty programs.

Market Spotlight: BTC & ETH

Powell will be speaking today in Jacksonhole today. The wording of his speech is going to impact the markets.

BTC Price Highlights: Key support is still at $25k and resistance is at $28k.

BTC has gone into boring mode again and hasn’t really moved a lot since the beginning of the week. To be honest, sideways, with BTC moving sideways it is very difficult to actually know if BTC will be bullish or bearish in the short term. We will be looking at some nice onchain data that might give us some long-term information on the trend.

Meanwhile, I recommend that you don’t try to find a trade opportunity in the don’t trade range. Try to find some entries in the accumulation range 1 and maybe take some profit in the take profit, distribution range.

With Powell speaking, there is a good chance that the market will wick, liquidating long and short traders in a short amount of time. High-leverage traders are most likely going to be rekt like always.

With the current low volatility, everyone is stressed about 1% market moves.

I posted a BTC inflow mean warning on the 23rd of August. The whales may have deposited large amounts of BTC onto exchanges anticipating today’s news. It’s important to keep in mind that these warnings are more of a short-term signal.

This would imply that BTC could drop to the accumulation range. A 5-10% drop.

On a longer timeframe, I have some good news. The NVT golden ratio dropped below -2. I received two such alerts in the last two days.

This is a relatively slow indicator but indicates that BTC is closer to a bottom than to a top in a mid to long-term timeframe.

Based on that info, you should be looking for entries to DCA and not looking for exits.

ETH Moving towards the golden pocket

ETH is at $1653 and is slowly moving towards the golden pocket buy zone. An ideal place to start buying some more ETH to hold long-term.

I’m also not the only one to think this. Here are some of the large ETH buy walls. The most noticeable ones are at $1550 (10k ETH) and at $1400 (27k)

This is actually really bullish.

In the short term, we can expect some volatility with ETH. Most people are definitely more scared of prices dropping. But IMO, but it’s a good thing. Before BTC, ETH and other cryptos can actually start rallying, whales will want to get their massive long positions ready and the only way they can do that is by liquidating the current longs.

Project Watch

Excellent breakdown on rollbit revenue and why it’s a top project to watch.

Community Corner

Here are some great reads from people I follow in the crypto community.

Here’s a fantastic read on rethinking incentive systems and how they work during bullish cycles:

Friend.tech: Rethinking token incentives for consumer adoption

That’s it for today. Have a splendid weekend ahead!

Cheers,
Kierin

Incidentally, let’s hope a Fiverr dev didn’t make your chain of choice ☠️