False Reversal Pattern? – Chung’s Weekly Digest (4/10)

Bitcoin briefly surpassed $48k but the rally was cut short by the Federal Reserve.

Hawkish Federal Reserve

Bitcoin ($BTC) was recovering after its short-lived rally was brought to an abrupt stop by the release of the Federal Reserve’s (Fed) minutes on Wednesday. The minutes revealed that the Fed plans to shrink the central bank’s balance sheet by $95 billion a month. 

The crypto market and the S&P 500 took a tumble after the minutes shows that the Fed officials could be contemplating a 50 basis point interest rate hike. 

Source: Guppy Multiple Moving Average (GMMA) shows that each time the bottom line is hit, a bull run follows 

Technical indicators seem to suggest that the worst is over but interest rate hikes will continue to spook the equities market. This is because the costs of borrowing will increase with interest rate hikes. 

Source: Senior economist and market strategist for Deutsche Bank says that cryptocurrencies are far too important to ignore and is bullish on Bitcoin’s value as digital gold

Investors and analysts are still bullish on Bitcoin and the overall crypto market despite its volatility and the regulatory clout. Institutions are starting to switch their sentiment towards Bitcoin. 

Marion Laboure, an analyst at Deutsche Bank Research said:

“I could potentially see Bitcoin to (sic) become the 21st-century gold”

Weekly Recap

Popular unhosted wallet service provider MetaMask incorporates Apple Pay

Binance aims to scale Web3 with new hires. 

Solana ($SOL) shows a strong recovery and looks ready for a rally. 

Mike Tyson’s mystery box NFT comes to Binance NFT. 

Axie Infinity moves to create Competitive Integrity Council.

Pudgy Penguins NFT Collection sold for 750 $ETH

The lawsuit against Binance was dismissed.

United Kingdom aspires to be a global crypto-asset tech hub. 

UN Agency receives a $2.5 million $BUSD donation from Binance Charity. 

Coinbase Ventures is investing in India to support Web3 startups. 

Logan Paul introduces his fractionalized NFT marketplace

Binance.US is valued at $4.5 billion after a successful $200 million fundraising. 

Gemini releases its 2022 global crypto report.  

OpenSea welcomes Solana in its initial beta. 

UFC and Crypto.com to give bonuses in Bitcoin

Certik garners a $2 billion valuation after an extended series B fundraise. 

Cronos onboards more users than Avalanche. 

Crypto.com’s NFT Marketplace is 1-year old. 

IndexZoo closes its $2 million seed round. 

Binance increases its efforts for Ukraine. 

CroHomes bring Virtual Reality to real estate on Cronos. 

India’s crypto trading volume shrank after-tax regulation kicked in. 

SafeMoon sees huge interest in its card offering.  

Market Sentiment


Bitcoin and other equities plummeted after hawkish Fed minutes were released on Wednesday. 

Investors and analysts continue to be bullish on the crypto market despite its volatility. 

Bitcoin is showing a reversal market structure. 

Source: Crypto Rover tweeted that Bitcoin is showing a similar recovery structure in early August last year before hitting its all-time high

The current price action is a perfect buying opportunity

Source: Bitcoin’s current price action is following Justin Mamis Sentiment Cycle (Book “The Nature of Risk” 1999)

The worst time to return to the market is when the market sentiment is at its all-time high and market participants are overly exuberant. 

Coins to Watch

NEAR Protocol ($NEAR) – NEAR Protocol is a decentralized application (dApp) platform that focuses on developer and user-friendliness. 

Its native $NEAR tokens are used to pay for transaction fees and storage on the Near crypto platform. 

NEAR has incorporated features like human-readable account names and not cryptographic wallet addresses. New users can interact with dApps and smart contracts without requiring a wallet. 


NEAR is scalable through the implementation of sharding. 

NEAR can be a valuable fit for the Web3 narrative and at a market capitalization of $11 billion, the project has a lot of room for growth. 

Moonbeam ($GLMR) – This project sits on the Polkadot ecosystem as a parachain. 

It is a smart contract platform that enables developers to move dApps between networks without having to rewrite code or redeploy. It is an interoperable platform.  

Moonbeam is one of the early parachain slot auction winners and will likely be able to leverage on projects in the Polkadot ecosystem that is building on its platform. 

Early enthusiasm for this project has slightly waned but this project is still very promising. Its native token has taken a severe beating by falling more than 77% from its all-time high.

PancakeSwap ($CAKE) – The most popular Decentralized Exchange (DEX) on the BNB Chain saw its token surge past the psychological $10 mark. 

Optimism has returned to the project with its new roadmap and the recent milestones that the team has achieved. 

PancakeSwap is one of the most undervalued projects in the ecosystem and will definitely see more positive price action in the near future. 

Come back next week for another iteration of Weekly Digest: Chung’s Picks of the Week from BSC News. Be sure to follow Chung Yee on Twitter.

Source : bsc.news

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