OVERVIEW

🫂 Bulls And Bears Hug It Out

Yesterday’s rally was impressive, but there wasn’t much of a follow-through today. But there wasn’t any major selling, either. Looks like bulls and bears are taking a break here. 😮‍💨

In today’s Litepaper, we’re looking at our trending tickers, airdrops, and charts.

Oh, and if didn’t get a chance to catch our Space on X with Raoul Paul - that’s in today Litepaper, too.

Here's how the market looked at the end of the trading day:  

STOCKTWITS
Trending Tickers

Here’s a collection of what’s trending on the Stocktwits app and cryptotwitter, or cryptoX (formerly cryptotwitter) or whatever it’s called now:

Reserve Rights ($RSR), TrueFi ($TRU), Celo ($CGLD), DATAcoin ($DATA), Bismuth ($BIS), GenomesDAO ($GENE), Travala ($AVA), Bitcoin ($BTC), Dogecoin ($DOGE), Jasmy ($JASMY), Pooh ($POOH), XRP ($XRP), and BOME ($BOME)

STOCKTWITS CONTENT
ICYMI: Our Live Discussion With Raoul Pal 👀

We had an absolute blast chatting with Raoul Pal of Real Vision and have highlighted some of our favorite quotes from the chat below. 👇

• “BlackRock is kind of the government proxy to keep people from migrating into crypto land, but I actually think its more of a trojan horse. People go into the ETF and eventually become curious, and before you know it, they’ve moved into crypto land. “

• There’s no reason for adoption to have happened, we’ve essentially “memed into existence” $2.7 trillion and it’s only just started. It’s likely to move onto $10 trillion [maybe] in this cycle, and maybe onto $100 or $200 trillion. And it’s all driven by a move from a “trust me” system to a “proveable trust” backed by mathematics and cryptography.

The quotes above barely scratch the surface of everything covered during the hour. If you missed it, listen to the recording here. 🎧🎶

TRADING
Smart Setups

Bitcoin Daily Chart

On $BTC's daily chart, the closest trendline served as strong support yesterday. The daily close resulted in a bullish engulfing candlestick pattern, suggesting a potential upward movement.

• The Composite Index has rebounded off a historical support zone.

• The Detrended Price Oscillator has made a significant jump from its lowest level since June 16, 2021.

Immediate Opportunity: The trendline at $62,325 offers an immediate entry opportunity for traders seeking lower entry points.

Further Ascent: Should BTC continue its ascent, another entry point is identified by a daily close above the highest high of the last three days, at $68,239.

Positioning Approach

A strategic point for those looking for additional confirmation before entering would be when the Detrended Price Oscillator crosses and closes above the zero line and the daily close is above the high of the last three days. A daily close below the trendline could indicate further downside pressure is coming.

Avalanche Daily Chart

$AVAX’s daily chart shows hidden bullish divergence between price and two critical oscillators: the Composite Index and the Detrended Price Oscillator. This divergence suggests a return to the prior uptrend.

• Composite Index & Detrended Price Oscillator: While they reveal a hidden bullish divergence on the daily chart, there's a snag. The Detrended Price Oscillator has dipped below the zero line—a move often interpreted as a precursor to potential declines.

• Weekly Chart Concerns: Compounding the cautious outlook, the weekly indicators echo a sentiment of exhaustion, suggesting that any attempts for a bullish surge might be on weak footing.

Immediate Opportunity: The congestion zone around the 50% Fibonacci retracement level at $51.71 provides a prime entry window for traders betting on a turnaround.

Range Play: For those eyeing a broader scope within the consolidation phase, the space between the 50% Fibonacci level at $51.71 and the midpoint of the 50% and 38.2% Fibonacci retracements at $58.40 serves as an ideal range.

Bearish Caution: Traders should remain vigilant for signs of a downturn, especially if the Detrended Price Oscillator closes below the zero line. While bullish setups are in focus, the overarching market sentiment and weekly indicators suggest preparing for potential shifts.

Positioning Approach

While the bullish divergence on AVAX's daily chart offers a glimmer of optimism, the broader indicators that prompt a balanced and cautious stance might be the game's name. A daily close below the zero line in the Detrended Price Oscillator could easily negate any near-term bullish price action.

Polygon (MATIC) Daily Chart

$MATIC had a massive rebound off the 50% Fibonacci retracement level at $0.943 yesterday, setting the stage for potential entry opportunities.

• Composite Index: Showing signs of a bullish resurgence, with a big bounce after hitting historical resistance. zone.

• Detrended Price Oscillator (DPO): It did the same as the Composite Index—it hit a historical resistance level and bounced.

Positioning Approach

The activation point above $1.037 offers an entry leveraging the technical indicators' current positioning and aiming to capture the momentum of a strong bullish breakout. While the technical setup is leaning towards bullishness, it’s still possible that MATIC and the broader crypto market could face a sustained drive south.

AIRDROPS
Active & Upcoming Airdrops

Airdrops are like unexpected gifts from the crypto heavens, where digital tokens or coins are freely distributed to the wallets of active members within a blockchain network. It's the crypto world's version of finding money in your old coat pocket, but digitally and sometimes with strings attached.

STOCKTWITS CONTENT
A Brand New “Trends With Friends” 👀

Stocktwits co-founder Howard Lindzon chops it up with pals JC Parets and Phil Pearlman every Thursday on "Trends With Friends."

Watch the latest on YouTube and Spotify, and subscribe to catch each episode when it goes live!

Links That Don’t Suck

💿 Wu-Tang Clan Icon Set to Bring Music to Bitcoin Ordinals

🐶 Dogecoin Meets Coinbase Derivatives in Surprise DOGE Listing

🫓 The Bottom Is In On Bitcoin’s Latest Pullback, Says Willy Woo

🪨 BlackRock launches BUIDL fund for digital yield

🙏 States are racing ahead of Congress to regulate deepfakes

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