🧠 A Taco of Technical analysis

Data analysis for BTC & ETH, and our coin of the week.

February 28, 2023

GM Seedphrasers 👋 Reply back to us with an emoji if you read this while in bed. We’re here to make your come-up easier 😉

📓 Today’s Agenda:

  • 🔥 Hot Headlines

  • 🌡️ Seedphrase Temperature Check

  • 🐎 A Stable Coin Overview

  • 📊 BTC & ETH - Data Points Of The Week

  • 🪙 Coin of the Week

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🔥 Hot Headlines

📉 Crypto & The Markets:

🖼️ NFTs:

🌡️ Seedphraser Check-In

Tuesdays are for 2 things tacos and temperature checks, and we’re here to make sure your thriving not surviving.

NFT hopium is back, Solana network failures, SEC regulation, and Binance is facing regulation and rumors of liquidation, February has been more than eventful. Now for the markets: Sideways we are, bulls and bears fighting and we’re here to help you choose the winning side at any given time.

Last week, 69% of you said markets are bullish. With less hopium in the air now and SEC crackdowns, where do you see the market going?

What does your gut tell you?

Bonus points if you tell us why.

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📊 A Stable Overview

The theme of this week? Stablecoins.

With tax season behind us, and rate hikes “almost over” seems like the new hot thing is the SEC’s focus on crypto, and oh boy are they making noise!

Here’s what you need to know:

Feb 8th the US-based exchange Kraken reached a settlement with the SEC over its staking-as-a-service product. As a result, the exchange immediately suspended staking services for US citizens.

Feb 13th stablecoin issuer Paxos declared it would halt the minting of BUSD.

Feb 21st increased regulatory pressure coming from the New York State Department of Financial Services. BUSD holders responded quickly by migrating over to other stablecoins while having a clear preference for USDT.

Feb 27th $BUSD was removed from Coinbase and its market cap has seen a huge decline by more than 31.2% overall this month.

Fun fact: Tether USDT has been gaining massive supply dominance, now holding a 54% market share of all stablecoins in the market.

With BTC and ETH up a quite 43% & 38%, the market hasn’t really picked up full momentum. We still haven’t seen real capital enter the market.

Stable Coin Net Position Change

You’re probably wondering what this chart is. Let us simplify it for you.

Why this matters? Stablecoins are one of the key indicators that show whether or not crypto assets are being purchased, and this chart shows the total supply of stables held has been trending downwards.

What does this mean? When stablecoins supply increases, it implies there is more demand to buy crypto assets. When the supply declines, it implies the opposite.

The conclusion? Despite all the noise we’re hearing about all this new liquidity this chart clearly shows us the total macro liquidity coming into the market is actually on a downward trend. The overall liquidity of the market hasn’t increased, and the demand for crypto on a macro scale is still in decline which shows how “smart money” is still sidelined for now.

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📊 BTC & ETH - Data Points Of The Week

👉🏻 7 things to know about BTC this week:

Net Position Change BTC Hodlers

  • BTC/USDT ends a five-day losing streak with a green daily candlestick to close the weekend.

  • BTC/USDT is strongly supported at the $23,340 price point and bulls are currently in control.

  • Long-term Bitcoin HODLERs are not interested in selling at the moment and are increasing their BTC exposure at current prices.

  • BTC has broken above the macro monthly range at around $23,400, according to Rekt Capital.

  • Despite mixed BTC price action last week, sellers still incurred net realized losses, according to Santiment.

  • Hodlers' net position change hit a four-month high this weekend, as per on-chain analytics firm Glassnode, indicating a significant rate of accumulation.

  • The percentage of dormant BTC supply, i.e., not moved in the past five years, has reached a record high of 28.24% 

👉🏻 5 things to know about ETH this week:

  • The Shapella hard fork is scheduled to activate on TODAY and will test validator staking withdrawals.

  • The weekly RSI has broken through its descending resistance line.

  • ETH has been consistently rejected within its target range of US$1,650 to US$1,700.

  • For traders, the daily RSI has broken out from its bearish divergence trend line (green line) and is now above 50.

🏆️ Coin of the Week: Liquity (LQTY)

Liquity is a decentralized borrowing protocol built on Ethereum. It allows ETH holders to withdraw loans in the form of LQTY with algorithmically adjusted redemption and loan issuance fees.

In short, it’s a decentralized loan broker that utilizes LQTY (their native token), a USD-pegged stablecoin as a form of liquidity.

If you want to dive deep into the technicals read this.

🤑 Why did it run up? LQTY is a governance token (LUSD), which demonstrates high censorship resistance as it is over-collateralized only by ETH. Which is not the case for BUSD.

🧑‍🤝‍🧑 The team is led by Michael Svoboda, a previous CEO with experience at several blockchain companies. Degree in computer science and economics. With Robert Lauko by his side, a previous researcher at DFINITY. You can check out the rest here.

🟢 Current Price: $1.43
🟠 Market Cap: $129,189,597
🔴 24hr Volume: $5,893,902
➡️ Where to buy: Binance, KuCoin, Gate.io, Coinlist, Bitfinex.

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