🧠 Getting technical about BTC & ETH (Chart reading for you)

GM Seedphrasers 👋 We've been looking at charts and numbers more than the weatherman. Here's the short & sweet crypto forecast, based solely on data.

📓 Today’s agenda:

• 🩸 Has the bleeding stopped?

• 🏦 Whales are leaving exchanges.

• 😉 80% of ENS domains were created this year.

• 📈 Polygon NFTs are looking bullish.

• 😂 Meme of the Day.

🩸 Has the Bleeding Stopped?

We asked our magic 8 ball if we've finally bottomed.

Of course, we fact checked her. So we took a look at some charts.

Here's what we noticed:

• In the US: for the last two weeks, open interest in ETH & BTC has remained relatively flat across all exchanges.

• Open interest tells us how active traders are. When it holds a flat line, this tells us the coin may have bottomed, or is near bottom. For now..

• Globally: Huobi, a world-leading global exchange, saw a rise in open interest on ETH & BTC.

Our take away: flat line in the US + positive activity globally = bleeding has stopped for now.

It may be due to the holidays that we see a slow down in trading in the US, while global markets charge forward.

When in doubt, zoom out.

We took a look at some really ugly graphs like this one:

What we found:

Historically, January has been a steady month for BTC. On average, BTC has risen 11% each January. But, it's by no means a good month for BTC.

⚜️ Golden Nugget: historically and currently, data suggests sideways (flat) price action. Current prices should hold relatively stable for the month. Remember, BTC movement is a great indicator for how the rest of the market will move.

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🏦 Balance on Exchanges

BTC

• Binance, we saw a substantial amount of BTC being taken off quickly in December. The reserves of BTC have not regained November 2022 levels and show that only a few people are playing in the markets or looking to sell. People are keeping their BTC off Binance in cold storage.

• Coinbase has very odd BTC movement from them. They move in steps, meaning that whales are moving lots of BTC quickly.

• Crypto.com saw a continued decrease in BTC held on the exchange and a massive fall since November and has yet to regain those levels.

• Kraken saw the steepest BTC withdrawal movement. They have seen an abrupt decrease in BTC on their exchange since November.

In short, many people are pulling their BTC off exchanges, which could signal less price action and more of a holding mentality.

ETH

• Coinbase again has very suspicious and bizarre movements. The "step" movement in the chart/graph symbolizes that whales are moving lots of ETH off quickly. Usually, funds move differently than this.

• Binance has seen a continued decrease in December. Indicating more people removing ETH from exchanges.

• Crypto.com is screaming red flags. People don't look to move their crypto in this type of action for this to occur—thousands of traders all deposit ETH simultaneously.

Our analysis reveals some major red flags, especially with crypto.com moving sketchy. There's a theory that crypto.com is borrowing or using ETH during audits for proof of reserves, and only a few people are causing this movement, not a large number of traders moving funds.

This could be the next crypto implosion, and it's essential to know this, so you don't become the next FTX victim.

Not to mention the Significant Drop in ETH's main net daily transactions yesterday. Dropping 742K, which hasn't been this low since April 2020.

📊 Significant Stats

ENS DOMAINS:

Over 2.2M ENS domain names were registered in 2022 (80% of all names created).

THAT'S HOW EARLY WE ARE. Claim one before it's too late.

Polygon NFT stats:

A whopping 1.3M polygon NFTs were sold on Opensea, which resulted in $15.3M in volume traded from 116K active traders.

The volume mainly came from the Trump NFTs that dropped a few weeks ago.

Overall, things aren't looking too shabby given the hell we've gone through. Maybe we can take a moment to breathe this month.

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😂 Meme of the Day.

New year, new me.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research