Welcome to another day in the crypto markets.
🤯 There’s been a lot going on with the market technicals.
✅ That’s why today’s Market Meditation shares charts and technical analysis on 3 crypto assets.
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⏰ 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.
😎 Under The Charts
We’ve experienced a 46% move up. We’re approaching a 0.382 zone. This isn’t the worst entry. People are bullish and hopeful again.
Continuation up until $45k (as long as we hold the 0.382 level) seems likely.
Invalidation would be somewhere below the $36k level. If we were to lose this level, we will reassess our exposure to the market.
Alternatively we can wait until $42k is claimed and buy the breakout. It also depends how we approach this level. A straight bounce would show a lot more momentum and strength compared to a sideways move up!
Opportunities are much nicer outside of BTC.
Testing resistance at $2.6k. The way things are going, the $2.8k level doesn’t seem out of the question. The move up is even stronger than BTC’s… the 0.236 level is holding. Getting a bounce off 0.236 to new highs look like an aggressive accumulation play between $2.3k and $2.4k level.
Next key structural level to claim would be $2.9k with only a weak resistance at $3.2k.
Note we have a big Ethereum EIP-1559 update coming this week… Beware of ‘buy the rumour, sell the news’ type events. The news event is about to occur and normally the price does not go up after these events.
Putting that to one side, the market structure is looking good. 13 days of straight green candles so far… Not to mention, ETH is also supported by the NFT narrative because the majority of NFTs are traded on Ethereum.
This is the Axie Infinity token. Bouncing at the 0.382 level. May not be prudent to enter this late into the trend. Could be more interesting to pay attention to when the asset sees some sort of heavy correction. This is when we could look to gain exposure.
This is a fundamental play… based on the logic that if they maintain their current advantage and momentum, the upside could be promising.
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🎻 Music To Our Ears
Which Texas Symphony Orchestra has released an NFT recording on Rarible?
Austin Symphony Orchestra
Fort Worth Symphony Orchestra
Dallas Symphony Orchestra
🔥 A Flare for Bitcoin?
Last week we talked about the pros and cons of getting into bitcoin mining. But beyond individuals and the well established mining pools out there, another industry is starting to take note: oil & gas. There has been a steady trickle of stories about pilot projects from independents to the majors. But what are they doing and why?
Sometimes oil & gas companies have gas they cannot use or sell which can result in routine flaring – in other words, it’s burned. This is a major source of CO2, especially as flare systems can be inefficient combustors.
Bitcoin mining companies want to redirect this gas to electricity generation. This doesn’t eliminate the CO2 but can significantly reduce it due to the higher efficiency of gas-fired electricity generators.
There are multiple business models: for example, EZ Blockchain sells equipment but lets the customer keep the mined bitcoin. Alternatively, Crusoe Energy just pays for the gas and keeps the bitcoin for itself. The latter might be a lower-risk return for companies that don’t want to speculate on bitcoin’s price.
Keep in mind: as more miners join the network, the hashpower increases, which in turn increases the mining difficulty! Initially this will mean more power per mined bitcoin, theoretically impacting the financial return of all miners, unless other miners leave the network (due to poor performance or regulatory enforcement).
All of these companies will be looking for scale to meet internal return targets and, if successful, could have a significant impact on both global emissions and the bitcoin network. To find out more about mining difficulty, blockchain.com has some useful charts and definitions. And if you’d like to know more about global flaring emissions, this IEA report is a good summary.
3. Dallas Symphony Orchestra
The concert held in May at the Morton H. Meyerson Symphony Center in Dallas has had an opening bid for its NFT recording of $50,000. The music performed was Mahler’s First Symphony and was the first live performance since the 2020 lockdown began and was reportedly a very emotional experience. This just goes to show how NFTs can be used for momentous musical occasions as well as for art and gaming.
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.
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