Cryptocurrencies as a whole are in a bear market. There’s no denying it. But even in the darkest of times light can be found, regardless of asset class. Cryptocurrencies are no exception.
Our diamond in the rough is Axie Infinity (Token: AXS); we’ve written about AXS before, as their project is a more promising than others in the industry.
AXS/USD 1D Chart, 22 Jun 2022
Price is re-entering the consolidation zone prior to the bull market. From the all time high at $171 price is now trading at $14. That does not leave a whole lot of room left for downside.
The Axie Infinity Project
Axie Infinity have a metaverse that has been rapidly adopted, with over $3.6B traded in their marketplace, over 2.8M users, and an $820,000 NFT being the most expensive Axie ever sold (a piece of land in Axie’s metaverse). Users can stake axie for fantastic yields.
That’s quite a bold article title. We’re not saying that Bitcoin isn’t a worthwhile investment for the long term, but in the short term there are some signs of further downside still.
Looking at the year to date chart (start of 2022 to now) the bearish market trend is all too obvious. Since opening the year at $46,199 price dropped by about 45% to a low of $25,401. Price is now approaching upside resistance around the 50 day moving average, and the Q1 low of $32,950.
BTC/USD 1D Chart, 31 May 2022
If price breaks above this level I’ll be looking for the May open of $37,638 to be the next key resistance.
For those of you living under a rock for the past week, Luna has fallen from the heavens, trading from the ATH of $119 USD down to < $0.001in less than 40 days. The Terra algorithmic “stable coin” UST also has broken the “peg” to the USD, with the stable coin now trading at $0.08 USD.
Various DeFi’s have attempted to launch an algorithmic stable coin to date, however to the best of my knowledge none have successfully maintained the peg to a fiat currency.
In theory, stable coins offer the benefits of cryptocurrency, such as ease of payments and low transaction fees, but without the price risk commonly associated with cryptocurrency.
Now, with stable coins such as BUSD (Binance’s stable coin) that are actually backed 1:1 with fiat currencies this is true, as the stable coin is merely a token redeemable for 1 US dollar, enabling ease of transaction.
Unfortunately with Algorithmic stable coins this principle isn’t in place. Without a fixed fiat ratio backing the stable coin peg, a significant selling volume can deviate price from the peg. When investors, traders, or other corporates holding the ‘stable coin’ see the peg fail they can panic and exit sell, effectively triggering a price avalanche. This is basically what the market has seen with UST.
The failure of UST saw 200 Billion dollars wiped in less than 24 hours. Whilst it’s easy to criticize in hindsight, we’d like to send our condolences to any of our readers if they have had investments in UST or Luna turn to rubble.
Trust is absolutely integral in DeFi and crypto, and events such as this shake the markets’ trust in crypto to the absolute core.
On the bright side USDT, BUSD, and USDC all still are relatively holding the peg to the USD. This extreme stress test has shown that these tokens are up to token. In all honesty, I’m quite amazed that USDT has held the peg considering the common-spread speculation that USDT is not actually backed by USD.
What’s Next For Bitcoin?
Bitcoin has broken the bearish flag pattern. Now the main question to be asked is ‘will bitcoin trade to $10,000?’. I can’t say for sure, but current global economics would indicate continued downside as very likely.
First lets have a look at what Bitcoin is up to – we recently wrote that BTC has bullish seasonal tendency in May Since we made that post bitcoin has stayed in the same trading range that we outlined, failing to form a trend.
We are continuing to look for a break of the trading range, and our bias remains for upside.
BTC/USD 1H Chart, 4 May 2022
SEC Member Peirce knocks Crypto Enforcement
On Tuesday the US Securities and Exchange Commission announced plans to increase the headcount in its newly named Crypto Assets and Cyber Unit from 30 to 50. The agency describes the unit as being responsible for “protecting investors in crypto markets and from cyber related threats”.
SEC Member Hester Peirce took to Twitter (recently acquired by Elon Musk), tweeting “The SEC is a regulatory agency with an enforcement division, not an enforcement agency“. She questioned “Why are we leading with enforcement in crypto?“
As far as investments go, it seems that learning to hack is a far more lucrative investment than any cryptocurrency with the current market conditions… Only kidding!
Crypto.com Reduces Card Rewards & CRO Plummets!
Crypto.com, one of the leading cryptocurrency exchanges by traded volume has slashed the rewards available on their Visa-enabled cards. The reduced rewards have impacted the staking yields available for cardholders.
Monthly rewards o the lower tiers would be capped from $25 to $50, whilst there would still be no reward cap for higher tiers.
After the announcement to the rewards slash Crypto.com’s native coin CRO (Cronos) plummeted, hitting as low as $0.26550.
Ethereum is approaching a mid-term resistance area
ETH/USD 4H Chart, 2 May 2022
Ethereum is trading into a structure support / resistance zone, around the 61.8% fibonacci level. The level also has the added confluence of the resistance trendline and the previous structure zone.
We’re looking to see how price interacts with this zone. If price holds below we will look for continued downside, however a break above could shift this bias.
Our preference is for downside below the $3000 significant figure.
Bitcoin has been moving sideways so far in 2022, ranging between $34,000 USD and $48,000. The flagship cryptocurrency’s $14,000 range could be about to break however, and we want to make sure our followers our ready for whatever scenario.
Bitcoin 1W Chart Overview
On the weekly chart the 50 through to the 500 moving averages are still in a bullish cross, a bullish sign for long term position traders. Price is also holding between the 50 & 100 moving averages, suggesting that we might see another push to the upside in the near future if traders defend the 100 week average.
BTC/USD 1W Chart, 27 April 2022
Bitcoin Seasonality – May usually bullish?
Is May a bullish month for Bitcoin?
Returns by month — outliers excluded. Source: CoinMetrics, daily bitcoin price data for 18/07/2010 to 31/01/2020.
Judging by the chart above… yes! Whilst there is a higher median in other months, May is typically a bullish month for Bitcoin. That’s why we’re favouring upside, but keep in mind we also do have a trade plan for if downside prevails!
The Bitcoin Playbook for May
Bitcoin has been trading in a bearish flag / ascending channel pattern in 2022. The recent leg has moved into the support trendline, where we are watching for price to either break or bounce.
As the chart displays, to go long we must see the previous structure broken and retested as a support zone. Alternatively if price breaks to the downside of the channel and has a prolonged correction then we will continue looking for downside into the $28,000 mark.
BTC/USD 4H Chart, 27 April 2022
What do you think is next for bitcoin? Let us know in the comments below!
CRO/USD closed yesterdays trading bullish, Having held above the support trendline. Recently price broke the wedge pattern to the upside, a bullish indicator. We’re looking for Crypto.com’s Cronos token to trade back into the $0.65 figure, and potentially further above.
Axie Infinity is holding the $45 support level today, after a multi-week tumble. Price has tumbled around 30% over the last two weeks after losing $625M to a hacking incident.
AXS/USD broke the descending trendline earlier this year, after a multi month bearish market. Price has now traded back into support, raising the question “should traders look to buy this support?”
AXS/USD 1D CHART, 13 APRIL 2022
My View – Yes. Here’s Why AXS looks promising.
Axie Infinity is a play-to-earn game, offering an extremely popular metaverse. Their in-house marketplace has traded over $3.6Bn in USD value, boasts over 2.8 million active daily players, and the highest price tag an Axie has fetched is $820,000.
With those sorts of numbers there’s no denying the rapid adoption of their metaverse.
Now, lets have a look at the AXS token fundamentals. As of writing this there are 77.36M tokens in circulation, a total of 270M tokens minted, and a current market cap of $3.65Bn.
But here’s what really excites me about AXS – staking. Staking Axie Infinity on Binance users can yield up to 120% per annum.
120% per annum. You’d have to be absolutely mental to ignore yields like that.
Staking Axie Infinity at Binance
If there was ever a reason to hold crypto its yields like that.
The Crypto King, Bitcoin, has dropped below the $40,000 mark again. Price broke below the 50 and 100 day supports yesterday, closing the day down -$3197 (7.54%) from the daily high.
Despite the sell-off Bitcoin bulls still have a few reasons to remain hopeful. The first is that during todays trading price has held above the $39,573 pivot, which is currently acting as support.
The other reasons for bulls to remain hopeful is the ascending channel that price is still caught in. Whilst this may be a bearish flag forming, as long as price is in the channel and forming higher highs it should be treated as a bullish market.
BTC/USD 1D CHART, 12 APRIL 2022
Yesterdays bearish move saw crypto markets bleeding. Some of the notable moves included:
Bitcoin: -5.4%
Ether: -6.8%
Polkadot: -11.4%
Chainlink: -11%
Filecoin: -13.3%
In other Bitcoin news, the Luna Foundation GUard added another $173 million in BTC to its wallet over the weekend. The Singaporean entity is establishing a reserve protocol for the UST stablecoin. They now have 39,897.98 BTC in their wallet, worth over $1.6B.
NBA doubles down on Crypto
The National Basketball Association’s (NBA) Crypto Chief has registered a second .eth domain, and the NBA has filed for 4 NFT Trademarks.
The basketball league’s filing includes cover for game tickets, programs, trading cards, memorabilia, jerseys, basketball memes, and more. This is a bold and a huge adoption for crypto technologies.
It’s been widely prophesised that NFT technology would be used for event tickets, and the NBA seems to be the first group to be putting this into action.
Judging by the purchase of the .eth domains (nba.eth and theassociationnft.eth) it’s apparent that the NBA is planning to utilise the ethereum network for their NFT’s.
Bored Apes on Film
The Bored Ape Yacht Club is getting its own film trilogy, with crypto exchange Coinbase producing.
It’s been a big few weeks for the crypto / NFT space despite cryptocurrency markets bleeding red. Just a few weeks ago BAYC launched the ApeCoin (APE) token, which has already been offered by many CFD brokers as a derivative.
Bored Ape owners are invited to submit their apes for consideration as characters in the trilogy, along with made-up character descriptions that will be reviewed by a casting director.
Weird, huh?
Ethereum – Chart of the Day
Ethereum has traded into a key support level today. The level has been traded as a support and resistance zone. Price recently broke the descending resistance trendline begging the question:
Q9 Capital, a crypto investment platform for individuals and institutions, has launched Auto-Invest to deliver systematic investment strategies to the digital asset market and address the growing demand for convenient portfolio management tools in the sector.
Traditional finance is awash with passive investment strategies such as exchange traded funds (ETFs) and robo-advisors that have enabled low cost, easy and diversified options for millions of underserved people across the globe. Yet crypto has until now been a largely DIY asset class dominated by active trading platforms that lack simple investment solutions.
Q9’s first-to-market Auto-Invest solution, the Savings Plan, fills this white space, helps clients accumulate digital assets over the long term and put their crypto investing on autopilot.
Q9 Capital Auto-Invest product
How the Savings Plan Works.
Clients allocate USDC stablecoins to Q9s interest bearing Earn product and a portion is drawn down and invested into their chosen crypto basket of crypto each month.
Each customer’s personal portfolio is diversified across a chosen basket of cryptocurrency baskets, or themes, such as Blue Chips, Ethereum Killers, or the Metaverse. The investment menu is designed to meet the various goals and interests of a broad investor base.
Removing the Emotion from Crypto Investing.
The Savings Plan utilizes “dollar-cost averaging” techniques and is designed to remove irrational decision making from the crypto investment process, mitigate timing risk, reduce the impact of short-term price volatility and smooth the entry point to crypto over time.
Client money is automatically invested into crypto at regular intervals in equal portions regardless of the ups and downs in the market, meaning they don’t have to think about the right time to invest.
Low Cost, Efficient Crypto Portfolios with Beneficial Ownership.
Unlike ETFs or mutual funds where investors hold units representing ownership of underlying assets, Auto-Invest users have full ownership of each crypto asset line-by-line, meaning they have full control of their individual account.
The Savings Plan charges no management fees or trading commissions and clients can start investing in these strategies with as little as $1,000.
About Q9 Capital
Q9 Capital is a full-service crypto investment platform for individuals and institutions. We combine innovative products and personalised service to deliver a simple and safe solution for crypto investing. Our best in class products, performance analytics and systematic investment offerings provide investors with the tools they need to accumulate assets, maximize returns and generate income from their crypto investments.
NGT8R 