#002 – DXY Breaks Resistance, ETH/BTC Shows Bitfinex Sell Wall & More from The Morning Edge

Crypto Update: DXY Breaks Resistance, ETH/BTC Shows Bitfinex Sell Wall & More from The Morning Edge

GM! This is what we will be covering today.

1. 📉 Crypto market trends bearish, dropping below $953B.

2. 🪙 BTC nears $26k; ETH's crucial mark at $1650.

3. 💵 US Dollar Index turning bullish, affecting crypto.

4. ⚖️ ETH/BTC shows a sell wall on Bitfinex.

5. 📰 Key news: Binance's copy trading & Ethereum's new test net.

Summary: Bearish crypto trends are evident, with BTC and ETH nearing key values. The bullish US Dollar Index could impact crypto, and notable market events include Binance's new feature and Ethereum's upcoming test net.

2. Market Spotlight

The global market cap trend turned bearish on the daily timeframe. This is even more accentuated by the drop below the $953B support level. This is a level the market dropped to mid-June. I anticipate that the market will bounce between the $953bn resistance and the month's low at $884b

BTC is a hair below $26k and will most likely experience quite a bit of volatility in the accumulation range 1. It would be good to see no candle close below $24.5k. However, a wick into the golden pocket 1 between $23.5k and $24k could be a good opportunity for wick hunters.

ETH needs to stay above $1650. Otherwise, it is likely to revisit Golden Pocket 1 between $1450 and $1500. I recommend placing limit orders in that buying zone to catch wicks.

The US Dollar Index has started to break above the $103 resistance. I initially got the idea to look at the DXY today from Degen Ape Trader. I wanted to share his chart. Unfortunately, the markets have changed, and now the DXY is looking more bullish, which is bearish for crypto and stocks.

For the first time since April 23, there was an ETH/BTC sell wall on Bitfinex, established between 0.0645 and 0.0655. Historically, the ETH/BTC pair on Bitfinex has exhibited intriguing patterns. If the current trend in Bitfinex's ETH/BTC is accurate, it might not be the best time for trading altcoins.

The next big onchain liquidations for ETH are at around $1512.

Furthermore, there are some massive $CRV liquidations onchain that will occur when CRV drops below $0.24

Be careful with low-liquidity altcoins. Be prepared to stomach larger drops in price should the BTC dominance rise. You should either have a long-term accumulation strategy ready or tight-stop losses.

3. Twitter Takes

Here’s a great market overview by Fabian D.

TLDR; This year's market views indicate a stagnant liquidity backdrop with fewer cryptocurrency investments and deteriorating global macro liquidity, occasionally disrupted by events like regulatory updates. Bitcoin and Ethereum have fallen below crucial benchmarks, while other altcoins consistently decline within a yearly range.

Nerdbot is a handy tool for discovering what Smart Money whales are buying. The Data Nerd wrote a great thread on it.

Better safe than sorry when it comes to having funds on Binance. I mean, there’s a reason people constantly say not your keys, not your coins.

Vitalik sold 382k OP tokens that he received by being an early investor.

4. Wallet Watch: Who's Buying What?

The current narrative is friend tech tool coins that get released fast and go from a $50k to even $1m marketcap rather fast. However, it’s difficult to share these here since they are fast-lived. However, if you like, I can write a short tutorial on how to use Chain Edge to 1. Find profitable traders 2. See what these profitable traders are buying.

I’ll make the tutorial free, but you must refer at least one other person to this newsletter. 🔥

5. News Highlights

• Binance Futures set to introduce copy trading today.

• Mantle makes a significant deposit of 40,000 ETH into Lido.

• Paradigm secures an investment in Friend Tech's seed round.

• Deribit & LP suffer major losses during the massive market dip.

• Venus Protocol acts swiftly, liquidating $62.5M from a wallet linked to the BNB bridge hack.

• Ethereum developers gear up to roll out a new testnet named 'Holesky' next month.

• Yugalabs announces its decision to sever ties with Opensea.

• Get insights into FriendTech with "Dune" by CryptoKoryo.

• Revealed: A database of Twitter x Wallet addresses by Banteg.

6. Conclusion & Looking Ahead

• The global crypto market shows bearish trends with a significant drop below the $953B support.

• BTC is hovering below $26k, with potential volatility and a recommendation not to see it close below $24.5k.

• ETH needs to maintain above $1650 to avoid dropping to the Golden Pocket 1 range between $1450 and $1500.

• The US Dollar Index (DXY) is appearing bullish, suggesting bearish outcomes for crypto and stocks.

• ETH/BTC exhibited a sell wall on Bitfinex, hinting that it might not be the best time for altcoin trades.

• Yearly market views suggest stagnant liquidity with key cryptocurrencies like Bitcoin and Ethereum dropping below important benchmarks.

• News Highlights: Binance Futures introduces copy trading, Mantle deposits 40,000 ETH into Lido, Paradigm invests in Friend Tech, and Ethereum is set to release a new testnet named 'Holesky'.

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P.S. I’ll leave you with this interesting read by Sahil Bloom on increasing your luck surface. This is incredibly important for investing and trading in crypto.

Here are two points that stand out:

• Lucky individuals recognized chance opportunities that unlucky ones overlooked, despite equal access.

• Lucky individuals employed diverse strategies: taking different routes, engaging with varied groups at parties, and maintaining optimism.