Bitcoin and Crypto Market Updates (April 24th)
BTC — It was a pretty grim week last week with BTC dropping over 10%. However, this resistance zone was a natural place to pull back after such a wild rise this year. Im only really concerned if BTC doesn’t hold the 24/25k zone. Plenty of support confluence in this zone so until it’s broken no major dramas.
Alts — Getting hammered as BTC and DOM move together = Alts stable
OR we see DOM consolidating while BTC falls = Alts get hammered. Watching the relationship here for signs of exhaustion.
USDT.D — Approaching the mid-level here so we reject here = Good for crypto. OR we have one final push-up to complete the Elliot wave move on the 4-hour here.
ETH — Im back again with the Wyckoff haha! I’ll be buying the mid-level on ETH at around 1500 if we see it. I think this pattern is fully confirmed if we lose that mid-level… would expect a retest of the lows. ETH needs to get back above the range high to negate. You will notice I think we’re in phase B here with the final high before we move down to the ‘’spring’’ — I think we would have created the higher high above the ‘’AR’’ had FTX not blown up.
Taking everything on balance it looks like we’re due an upside move in crypto soon. Whether that’s sustained is yet to be seen. We have some work to do (particularly on the ETH chart) to negate the bearish look. BTC just needs to hold the key levels outlined above.
Switching over to LEGACY — Options levels have widened so expect a larger trading range this week. SPX I’m still targeting 3800 to give us this H+S pattern. From there let’s see… Longer term I still see the 3200 zone as the larger correction target. A move above 4200 throws the bearish case into question.
QQQ — STILL holding the key levels — once the 310 zone is lost we can get more confident on further downside.
NOTE — Massive week for earnings this week.
Jobs Data on Thursday
CORE PCE on Friday
Is Coinbase leaving the US?
Coinbase has hinted that it could leave the US as European countries offer more clarity on crypto regulations. While the UK is currently its second biggest market, some industry watchers see Europe as a better option due to the US’s uncertain regulatory environment. Others have questioned how moving to Europe would help Coinbase as 84% of its revenue comes from US customers. Last month, the SEC issued Coinbase with a Wells notice related to alleged securities violations. Coinbase said it is confident in the legality of its assets and services. Coinbase is also making moves to expand into Bermuda and is eyeing expansion into Abu Dhabi
SEC Chair, Gary Gensler can’t say whether Ethereum is a security
SEC Chair Gary Gensler was recently questioned by Patrick McHenry, Chair of the Financial Services Committee, regarding the classification of Ether (ETH) as a security or commodity. Gensler’s responses, however, were not straightforward, leading to criticism from McHenry and a lack of regulatory clarity. While some regulators and prosecutors have claimed that ETH is a security, others argue that it is a commodity. Gensler’s refusal to give a direct answer may further complicate matters for the digital asset industry, which has been seeking regulatory clarity for some time.
Hong Kong recognise crypto as property
Hong Kong’s High Court has recognized cryptocurrency as property for the first time, according to a recent legal decision. The ruling was made in a case involving the defunct crypto exchange Gatecoin, with the court determining that cryptocurrency has all the qualities of property under domestic law. Justice Linda Chan confirmed that holdings of cryptocurrencies constitute ‘property’ that is on a par with other intangible assets such as stocks and shares, bringing Hong Kong into line with other common law jurisdictions. The ruling could have implications for other legal cases involving digital assets and aims to revive Hong Kong’s image as a digital assets hub.
Russia experiment with Crypto for international payment settlements
Russia’s central bank is reportedly developing a way to use cryptocurrencies for international settlements, according to the local news agency TASS. Despite the ban on crypto payments for goods and services within the country, organizations affiliated with the state would be able to mine and use crypto for settlements initially, with private companies potentially allowed to do so in the future, said Central Bank Deputy Chairman Alexei Guznov. The Bank of Russia continues to oppose legalizing crypto exchanges and payments within Russia, but discussions about allowing the use of crypto for international trade have been ongoing since last year, particularly in light of sanctions imposed on Russia after its invasion of Ukraine.
UK crypto regulation could be live within 12 months
The UK is set to introduce crypto regulations within the next 12 months, according to Andrew Griffith, financial secretary to the UK Treasury. The Financial Services and Markets Bill, which gives regulators more power over the digital asset sector, has completed a third reading in the House of Commons and is now in the House of Lords for potential amendments before being sent to King Charles for final approval. The bill includes regulations for stablecoins and crypto assets, and proposals require crypto firms registered with the Financial Conduct Authority to apply for authorization under the new Financial Services and Markets Act-based regime. Meanwhile, in the US, enforcement of securities laws is currently driving crypto regulation.
Life Habits and Trading Crypto
Navigating the world of cryptocurrency can be a daunting task for many people. With so much information to process and the volatility of the market, it can be challenging to know where to start. However, developing certain life practices can help you achieve success in the cryptocurrency market.
Practice Diligence and Discipline
Cultivating the practice of diligence and discipline is essential for successful cryptocurrency trading. This involves regularly researching and analyzing the market, staying up-to-date with the latest trends and news, and understanding the behaviour of different cryptocurrencies. It’s important to avoid becoming obsessive or over-analyzing the market, which can lead to anxiety and impulsive decisions. A good way to start is by tracking your progress in a trading journal and setting achievable goals for your research and analysis.TIP: commit to a small and simple habit, such as getting at least 8 hours of sleep every day, and track your progress over time that’s gonna help your health and also your discipline.
Staying informed is another crucial practice for success in the cryptocurrency market. This means keeping up with the latest news and developments, following influential people in the crypto community on social media, and joining online communities to learn from other traders and investors. (Like our free Cryptorand Discord server!) However, be cautious of misinformation or hype that can influence your decision-making process. To begin, set aside a specific time each day to read reputable news sources and stay informed about the market.TIP: build your own list of sources you trust and always keep them in check to identify changes and be selective to avoid duplications and get a steady stream of diverse useful information.
One of the most important and disregarded practices for success in the cryptocurrency market is the implementation of risk management. Given the volatility of cryptocurrencies, it’s important to carefully manage your risk and never invest more than you can afford to lose. Having a clear understanding of different types of cryptocurrencies and their behaviours can help you make informed decisions about when to buy, sell, or hold onto your investments. However, it’s important to avoid investing solely based on emotions or FOMO (fear of missing out). A good way to start managing your risk is by diversifying your portfolio and setting a maximum percentage of your portfolio that you’re willing to risk per trade.
TIP: get used to position size calculations and defining your risk related to a trade’s Stop Loss distance from entry.
Set Goals and Plans
Setting goals and planning ahead is also essential for success in the cryptocurrency market. This means having a clear idea of what you want to achieve and developing a plan to help you get there. However, it’s important to set realistic goals and be flexible enough to adapt to market changes. Make sure to take the necessary steps to achieve your goals, but avoid becoming too attached to your plan, which can prevent you from making necessary adjustments. To start setting goals and plans, consider creating a detailed trading plan that includes your strategy, type of setups and monetary goal defined by time horizon.TIP: defining your main goal and breaking it down into smaller fragments would help you to commit to it and also not get overwhelmed. Take it step by step, to achieve a yearly goal, you can break it down into 12 monthly partial goals and then even into biweekly achievements.
In conclusion, cultivating the practices of diligence and discipline, staying informed, managing risk, and setting realistic goals and plans are essential for success in cryptocurrency trading. Remember to always stay patient and persistent, and never invest more than you can afford to lose. By following these practices, you can navigate the cryptocurrency market with confidence and increase your chances of success while avoiding common pitfalls that can lead to losses.
I hope that these recommendations and tips will help you in your journey!