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.
This week, MicroStrategy purchased an additional 1,045 Bitcoin for $29.3 million, bringing its total investment to $4.1 billion. This makes MicroStrategy the public company with the largest Bitcoin holdings in the world. Currently, the company’s 140,000 BTC were bought at an average price of $29,803 per coin. With Bitcoin trading at $27,958 per coin, the company is close to breaking even on its investment. This comes as Bitcoin experienced a strong start to 2023, although it remains 60% below its all-time high of $69,044 in November 2021. MicroStrategy’s founder Michael Saylor has consistently expressed his belief in Bitcoin’s potential as a store of value and an attractive long-term investment.
Moreover, Dogecoin’s price jumped over 30% after Twitter CEO Elon Musk changed the platform’s logo to an image of a Shiba Inu, the cryptocurrency’s mascot. Musk has a history of tweeting about Dogecoin, causing price volatility, and the lawsuit accusing him of manipulating the token’s price is ongoing. Dogecoin is currently the eighth-most valuable cryptocurrency with a market cap of over $13 billion. Musk’s companies Tesla and the Boring Company have also accepted Dogecoin as payment, and Tesla holds digital assets, including Bitcoin and Dogecoin, on its books.
Furthermore, The U.S. Department of the Treasury has warned that decentralized finance (DeFi) services, particularly those not compliant with anti-money laundering (AML) and terrorist financing rules, pose a significant illicit finance risk. The department’s first analysis of DeFi risks cites examples of thieves, scammers, ransomware cybercriminals, and North Korean actors using DeFi to launder criminal proceeds. In response, the Treasury Department recommends assessing possible enhancements to U.S. AML and countering the financing of terrorism (CFT) requirements for DeFi services and calls for input from the private sector to inform the next steps.
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Friday 7th of April, 2023 09:00 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.
14 separate advance attempts past $28,600 have failed. That’s a bit too many times without being able to push through for my liking. We can’t know how much supply is there, but clearly, it’s substantial.
So unfortunately we didn’t get the breakout yet and the rally seems to be on pause for now,
but the overall situation hasn’t changed. A retest of $25k would be healthy. The trend remains up.
Gold and Digital Gold have in the past had a strong positive correlation. Gold is eyeing a breakout (see commodities section). If the gold breakout happens, that could be the catalyst for the Bitcoin breakout too.
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.
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)
Once downloaded and installed, we are presented the option to [Get Started].
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.
On the next page, selecting the [No Thanks] button will opt us out of usage data collection (optional, either choice is fine here):
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.
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.
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:
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.
Once selected, the final confirmation page indicates that our wallet setup is now complete. Here we select [All Done] and our wallet is ready.
When looking to receive funds (cryptocurrency or NFTs), the public address can easily be copied from the top of the browser extension wallet.