2022 has been a wild yeah for the crypto markets. But what key topics marked the year? Let's recap the
Issue 25
May 12, 2023
Bitcoin: Bitcoin – Rejected At Resistance, H&S Top, Trend still up
Contents
Introduction
By The Moralis Research Team
Welcome back, everybody. It’s been another exciting week in crypto, and we’re pleased to bring you the next edition of Moralis Research. Today, we will be interested in getting your feedback on the content of these reports. Please take a few minutes to give us your feedback here.
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Cryptocurrency Market Overview and Analysis
By CTO Larsson
TA Report - Friday 12th of May, 2023 12:00 UTC
For those new to my analysis, I do trend trading over long timeframes.
Global tech only has two outcomes: Giant success or catastrophic failure. Tech either does a 100x or goes to zero, with little in-between. Before reaching either end point, the asset price will trend for extended periods.
My process aims to give exposure during those periods of established trends. That way I can enter with more capital for any given risk, compared to a hold only approach. I don’t try to catch tops or bottoms. I don’t worry about intraday movements. My style of analysis is not suitable for day traders or range traders. When it comes to tech, the big gains come from catching big moves over long periods of time.
This is an analysis at one moment in time. Market structure can change in an instant. When presented with new information, I will adjust my opinion accordingly. Technical analysis of historical data is not a prediction of the future. It is a tool that can aid in finding setups for favorable risk-reward and points of invalidation.
FOR GENERAL INFORMATION PURPOSES ONLY, NOT FINANCIAL ADVICE.
All information presented in this report references an opinion of the author and is for general information purposes only. You must not construe any information presented as legal, tax, investment, financial, or other advice. Nothing presented constitutes a solicitation, recommendation, endorsement, or offer to buy or sell financial instruments. I am not a licensed financial advisor or registered investment advisor. For financial or investment advice, seek a duly licensed professional in your jurisdiction, who can take your specific situation into account. Past performance does not indicate future results. You are always at risk of losing all invested funds. I don’t give advice to buy or sell specific assets. The education and software tools are timeless and generic for any asset. Rather than relying on subjective market opinions, I apply the principles of technical analysis formulated in 1930s on historical charts. Anyone can apply the same process and get the same result. Technical Analysis does not predict the future. It is a tool to find setups for controlled risk/reward. Larsson Line does not predict the future. It is a mathematical formula for trend expression. My objective with this report is to help you reflect on your own analysis, not to replace it.
Disclosure: I hold Bitcoin and Ethereum exposure through company ownership and in my personal capacity, as ETP price tracker certificates through my bank.
Trend Analysis
Bitcoin (BTC)
Rejected At Resistance, H&S Top, Trend still up
Ethereum (ETH) and Altcoins
Ethereum remains uneventful
Bitcoin (DOMINANCE)
Bitcoin vs Altcoins are battling here.
Bitcoin
Rejected At Resistance, Trend still up
If Bitcoin closes today at current levels, we have a H&S (top) pattern in the chart.
The pattern target on the log chart is about $23,800.
The problems here from an action-taking perspective are:
- We have key support at $25k, perhaps even front-run, which is rather close to current levels.
- The trend is still up.
My process is to exit 50% at top pattern confirmation. And that’s not bad.
If you entered at $17,433 and sold the 27k breakdown, that’s 50%+,
or +30% if you bought at the gold flip confirmation at 21k. Great!
BUT. Since I reduced earlier closer to resistance, I decided to consider that action to be front-running this defensive move. So I’m not taking any additional defensive action today. I feel the value of selling at 26,500 and trying to rebuy at 24,500, but taking the risk of getting left behind if we suddenly pump back, just isn’t worth it.
Instead, I’ll use any further dip for buying. Not NFA. Just what I’m doing. You could ignore all this, close your eyes and just follow the process.
Web3 Wallet: Start Guide
Metamask Wallet
In this overview we are using Metamask, the most popular Web3 wallet and ID system. Alternative methods do exist but are not explained in this overview. For a more detailed tutorial navigate to Moralis Blog.
STEP 1 Download and install the Metamask wallet
The first step to getting started with Metamask is to install either the browser extension wallet or the mobile version for iOS or Android.
(in the upcoming steps we will cover the browser extension version, but the steps are similar if using a mobile option)
STEP 2 Get Started
Once downloaded and installed, we are presented the option to [Get Started].
STEP 3 Import or create new wallet
After selecting the [Get Started] button we are asked if we would like to import and existing wallet, or create a new one. We select the [Create a Wallet] option here.
STEP 4 Opt out of Data collection
On the next page, selecting the [No Thanks] button will opt us out of usage data collection (optional, either choice is fine here):
STEP 5 Set up your password
Next we must specify a password for our wallet, this password will be used when signing transactions (we specify a password and agree to terms in order to continue). This is not a private key.
STEP 6 Watch the instructional video
Next, the wallet displays an instructional video on seed key security. The video is highly recommended for new users, or anyone generating a seed for the first time.
STEP 7 Create your seed phrase
Now that we have a good understanding of the purpose and security practices surrounding seed phrases. Selecting the [Next] button, prompts the generation of a new seed phrase, a related warning is displayed:
STEP 8 Verify your seed phrase
After revealing our seed phrase and storing it securely, the [Next] button becomes selectable. Proceeding from here, we are asked to confirm the phrase as a final security check, to make sure that you have stored the seed phrase accurately. By simply selecting the words in the correct order, our seed phrase is verified, and the [Confirm] button becomes selectable.
STEP 9 Complete wallet setup
Once selected, the final confirmation page indicates that our wallet setup is now complete. Here we select [All Done] and our wallet is ready.
STEP 10 Start using your wallet
When looking to receive funds (cryptocurrency or NFTs), the public address can easily be copied from the top of the browser extension wallet.
People Also Read
Bitcoin remains in the 30k range. Excitement is high! It’s easy to lose our cool here, but actually the situation
I covered this better in today’s video https://youtu.be/PhUSfy1x7sk 40k support retested and held. Tend up. Happy life.