Holy Altcoin Entry Opportunity Batman

Technically Speaking - January 26, 2024

Holy chocolate-covered strawberries, Batman; there are some great entry opportunities out there. Let’s dive right in.

If you don’t want to read the 1-900-MISS-CLEO crazy wizard fortune teller chicken bone voodoo technical analysis bits, there’s a TL;DR version at the end of each altcoin’s write-up.

Cardano

There are a few things that make Cardano’s daily chart so sexy. Let’s look at them:

1 - Gann’s 7-week cycle. W.D. Gann warned his students that after a big move up or down, they should watch for any corrective move that lasts 49-52 days because a return to the prior trend is often immediate and without warning. He called it his ‘Death Zone’. Cardano’s right at the end of that zone now.

B - The Composite Index is in its historical support range, and given the slope of the CI line, if it stays the same, it will cross both of its moving averages at the same time - something I call ‘the pinch,’ in this case, it’s a bullish signal.

3 - The Detrended Price Oscillator’s slope suggests the next cross above the zero line is incoming - another bullish warning signal from Connie Brown.

7 - Charles Hoskinson is the sexiest man alive.

Aggressive Ichimoku traders are likely looking at entries on the daily chart when/if the daily closes above the Tenkan-Sen ($0.488) or, more conservatively, Senkou Span B ($0.511).

TL;DR Version

Ichimoku analysts and traders like entries on the daily when ADA’s above $0.485.

Near Protocol

Take everything I just wrote about Cardano, and you can apply it here for Near Protocol. The only change is the entry-level above Senkou Span B ($3.01).

TL;DR

Bulls are looking horny at a daily close above $3.01.

Bitcoin

It's not an altcoin, but if we call back to January 20th’s newsletter, the delicious Falling Wedge pattern was identified as a warning sign of a bullish continuation.

More importantly, Bitcoin’s daily chart is a fantastic example of how prices respond and respect Senkou Span B. Regarding entries that bulls or bears are looking for, ya’ll just need to GTFO because BTC is in Satan’s butt hole, aka the Cloud.

Ichimoku traders are all looking at a daily close above the Kijun-Sen ($43,800). Why? Because a close above that level would trigger one of the most sought-after entries within the Ichimoku Kinko Hyo system: an Ideal Bullish Ichimoku Breakout.

And don’t neglect the Detrended Price Oscillator - it’s about to cross above the zero line, something Connie Brown emphasizes as a strong bullish catalyst.

TL;DR

A daily close above $43,800 over the next few days would confirm and Ideal Bullish Ichimoku Breakout setup.

You Know The RRG? Ya You Know Me

Here’s a quick definition of what a Relative Rotation Graph is:

RRGs are like a race track for currencies or sectors against a benchmark (hello, U.S. Dollar Index!). Each quadrant is a stage in this financial marathon:

1. Leading Quadrant (green): Top dog alert! You’re leading the pack, but careful not to burn out.

2. Weakening Quadrant (yellow): Uh-oh, losing steam and falling back. Better find that second wind.

3. Lagging Quadrant (red): Major oopsie! You've hit a snag and are trailing behind. Cue the sad trombone.

4. Improving Quadrant (blue): Here comes the comeback! You’re getting your groove back and climbing the ranks.

RRG in Action:

• Rapid Rotation: Zipping through all quadrants? It's a wild ride, signaling volatility. Traders, keep those seatbelts fastened.

• Stuck in the Middle: Hovering near the center? That’s a whole lot of "meh" – no clear direction. Traders might play the waiting game.

• Consistent Leader: Cozying up in the Leading Quadrant for ages? Strong uptrend alert! Traders, consider jumping on this gravy train.

• Slow Recovery: Crawling from Lagging to Leading? It’s the tortoise approach, hinting at a gradual comeback. Traders, keep an eye out for those turnaround tales.

The GIF below shows the last 15 days in crypto and highlights some major market-cap cryptocurrencies and those at their extremes. The further an instrument is from the middle, the better the perceived trading opportunity is - so keep that in mind.

Here’s how I interpret some of what’s being shown on the RRG.

1. Dogecoin and Zcash (especially Zcash) show momentum has come in, and a new big push higher is increasingly likely.

2. Synapse (SYN) is on cocaine and ready to come down; people who like to short are probably frothing at the mouth.

3. Bottoms are likely in for Algorand, Cardano, and Fantom, but be careful.

4. Near Protocol (NEAR) presents the best long entry on the RRG due to its distance from the center.

Crypto News In 3 Sentences

FBI's Bitcoin Bonanza

The FBI's seizure of Silk Road's Bitcoin, which has been dormant since the site's 2014 closure, is hitting the auction block. In 2021, the DEA nabbed 2,875 BTC from Silk Road vendor "Xanaxman," Ryan Farace. Now, these Bitcoins, once worth $130 million, are up for auction, but they're just a drop in the crypto ocean. 🕵️‍♂️

Russian Ransomware Rogue's Reckoning

Vladimir (a name history hopefully will relegate to the popularity of Adolf) Dunaev, the Russian developer of Trickbot ransomware, has been sentenced to over five years in prison. His software targeted hospitals and schools, defrauding victims of $3.4 million. Arrested in South Korea and extradited to the US, Dunaev's guilty plea marks a win against cybercrime. 💻

Spearbit's Security Sweepstakes

Blast's collaboration with Spearbit introduces a $1.2 million security review competition. This bounty aims to attract solo auditors for Blast's Ethereum roll-up code. Spearbit's co-founders emphasize the importance of layered security in blockchain. 🐛

Wall Street Memes' Token Tumble

A hacker's sell-off of stolen Wall Street Memes (WSM) tokens caused a 35% price drop. Spot On Chain linked the decline to the hacker unloading 368 million WSM tokens. The WSM team has since blocked the hacker's activities, but the hacker still holds millions in WSM tokens, threatening further market instability. 📉

BlackRock's Bitcoin ETF Cash Creation Conundrum

BlackRock's spot Bitcoin ETFs have sparked debate with their cash-creation mechanism. The SEC's guidance on cash-creates, instead of in-kind orders, adds complexity for broker-dealers. BlackRock warns this method could misalign share prices with Bitcoin's value and impact the ETF's trading efficacy. 💰