🧘‍♂️This Affects You

Market Meditations | August 23, 2021

Considering a $BTC or #Ethereum entry? This Affects You.

Dear Meditators

? BTC has smashed $50k and assets are pumping.

In more bullish conditions like these, FOMO starts to creep in and many want to enter the market.

⚠️ But is this the best entry? Read to find out.

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Delighted to say this article is brought to you by FTX. Make sure to use our link to get a 10% discount. Based in the U.S? Here’s a discount link for you: FTX.US.

⏰ In A Rush?

Here’s 5 things you need to know about the crypto markets today:

Our Market Meditations are longer format educational segments. Each letter features a Market Meditation which will deep dive and analyse a relevant crypto event, theme or tool.

1️⃣ BTC/USD

If you’re a regular reader of Market Meditations, you’ll know we’ve been expecting to get towards $50k ever since we broke the 0.382 level.

We now find ourselves at 0.618 which is a key resistance level. There’s 2 scenarios here:

We break the 0.618 level. If we break this level, we’ve broken the downward macro trend.
Downtrend resumes. It is not unreasonable to see a downtrend resuming at this level.

If we consider these 2 scenarios, we arrive at the conclusion that this is not a great entry level. Risk to reward does not look attractive and worse still, it would be difficult to select an invalidation level. You’d be buying into a key resistance level.

The short term price action has been bullish and so we are also not interested in a short position.

Our best play? Wait and see what happens at this key resistance level. Hope for the best and prepare for the worst.

2️⃣ ETH/USD

Very similar to BTC. Facing a key resistance level at 0.618 level. Every argument we gave for BTC applies here too.

The key difference? ETH faces less resistance at these higher levels. Higher probability play compared to BTC at the moment.

3️⃣ SOL/USD

At a key resistance level with a potential breakout shaping out.

However, we don’t have too much support and the pump seems to be stalling. It’s a high risk entry for now,

The trick to buying high and selling higher is about knowing when something looks overheated. This may not be the case here but we can wait for confirmation of a breakout to be sure.

? As always, we’ve used a lot of jargon here. Remember we’ve created a glossary where you can find all our free guides, including technical analysis and fibonacci retracement guides.

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? Lower NFT Fees, Please

Every time an NFT is bought or sold on the Ethereum network, comparatively high gas (transaction) fees must be paid. With the boom in non-fungible tokens in full swing, demand for a practical solution is kicking into overdrive.

By addressing impractically high transactional fees and longer transaction times, alternate Layer 1 protocols, like Solana (SOL) and Avalanche (AVAX) have seen sharp rises in price. Virtually every Ethereum competitor offers faster transactions at a fraction of the costs.
Solana’s recent all-time high follows the launch of their Degenerate Apes NFT collection this month, selling out in 8 minutes.

With the meteoric rise in NFT interest, pressure is mounting for a cheap, fast solution sooner rather than later. While Ethereum’s native scaling solution is still to come, alternative solutions are gaining traction, threatening to wrest considerable market share away from ETH.

Cardano, Avalanche, Solana… all these have been called “Ethereum Killers” at some point. Yet still, ETH has been remarkably resilient in retaining its dominance. The clock may be ticking, however. As if these protocols needed any more strength added to their use-case, the flourishing NFT market is ramping up pressure for a timely solution. The potential for these projects to leverage attracted NFT crowds into long-term usage is unquestionably present. How these protocols capitalize on that possibility remains to be seen.

? If you’d like to learn more about digital collectibles, give our NFT guides a read, available here.

On Mondays, our ‘Scan The Week’ section is designed to show our community what events and headlines we will be keeping an eye on.

Monday, 23rd August

? Crypto.com x Axie Infinity
Trade-to-Earn your favorite Axie. Crypto.com is giving away 4 Axies worth up to USD 12,000 of ETH in a special lucky draw. More info here. Trade at least USD 100 of AXS or SLP every week during the campaign period to participate in the lucky draw. Campaign period: 07:00 11 August – 00:00 8 September 2021 UTC.

Tuesday, 24th August

? Yield Guild Games AMA
Bringing Manga and blockchain together, Digital Entertainment Asset Pte. Ltd. will be joining Yield Guild Games for another AMA.

Wednesday, 25th August

?️ SmartKey Roadmap
SmartKey, the platform that connects the physical world with the blockchain, will announce the official roadmap for 2021 on Wednesday August 25 at 1pm CET on YouTube.

Thursday, 26th August

? BNB Super Crypto Conference
Super Crypto Conference is a full day virtual conference for the latest insights and necessary conversations about blockchain and cryptocurrency in Asia.

Friday, 27th August

?? Jackson Hole Summit
It seems like yesterday when we wrote a letter about last year’s Jackson Hole Summit. The summit has moved online this year. Fed Chair Jerome Powell’s keynote address will be one to listen out for.

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??‍♂️✍️ Stories in this newsletter were written by Kyle F., Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Gerasimos P.

Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.

Disclosure. Some of the links we’ve included are affiliate, they give you rewards and discounts and earn us a commission. Additionally, the Market Meditator writers hold crypto assets. See our investment disclosures here.

🧘‍♂️This Affects You