Despite the dramatic breakout in yields this week, nothing has changed for Bitcoin:
We are still in the same range.
Issue 19
February 3, 2023
How To Use Defi Leverage with Gearbox
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.
This week saw a continuous price recovery for both the equity and the crypto market despite the decision of the FED to raise interest rates by 0.25%. Many market participants believe this raise was expected and hence already priced in.
The FED held its first meeting of 2023 last Wednesday. The outcome of this meeting was a rate hike of 0.25%, which aligned with market expectations, raising rates from 4.5% to 4.75%, the highest the federal funds rate has been in decades. FED chairman Jarome Powell stated that the job market is still very strong and that Congress must raise the debt ceiling so the US Government can meet its obligations.
Many analysts and institutions are expecting a recession in the economy in 2023. We see layoffs across the board from major companies. As Powel stated, US Inflation remains high at ~6.5%, lower than 7.11% last month and 7.04% last year. Therefore, the FED committee will likely continue an ongoing increase in rates to tighten monetary policy and bring inflation back down to the target range of ~3%.
With uncertainty in traditional markets and cryptocurrency still showing a strong correlation, what moves happen next may be difficult to predict based on any of these factors when considered by themselves. The introduction of new inflation calculating methods will further complicate the situation, but many see the actions as a bullish sign for the markets in general.
No matter what, we will continue to provide keen weekly insights and industry-leading deep dives into what is leading the current narratives. Right now, it is up to BItcoin to show the pack what direction to steer next. Bull or Bear, Web3 development continues to make strides early in 2023, the engine that will lead us into the next market cycle.
We’ll always provide you with our research to help with your education. We’ll keep close track of the main developments and evolution of the niches in blockchain so that you get the best of the new knowledge. When you’ve finished reading your report, please remember to fill out the feedback form, your feedback is valued, and we’re always open to suggestions.
Cryptocurrency Market Overview and Analysis
By CTO Larsson
February 3rd, 2023 | 13:00 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)
Trend is up.
Ethereum (ETH)
ETH/BTC trend rejected at resistance.
Binance (BNB)
Not much happening
Bitcoin (DOMINANCE)
Bitcoin dominance has not yet broken out vs the alts.
Bitcoin
Approaching first real resistance
I wrote last week that the obvious resistance in the chart pattern is the mid 2022 high, at about $25k. We are now really close to that.
I think we either retrace from this resistance to some lower support level, before continuing, or we break through; and then jump straight through the volume gap to $28,800.
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
Once downloaded and installed, we are presented the option to [Get Started].
STEP 4 Opt out of Data collection
Once downloaded and installed, we are presented the option to [Get Started].
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
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.
How to Use Composable Defi Leverage with Gearbox
Introduction
Leverage is an important tool to manage risks and maximize potential gains when investing in crypto assets. However, it may become very dangerous when used inappropriately. In this secession, we will explore how Gearbox simplifies Defi leverage into a few clicks with the composability of DeFi smart contracts.
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