We’re seeing Bitcoin crack the $45,000 support area this week, which opens up an area we’ve discussed at length recently.
So we’ll talk about that in today’s video, as well as ETH, AAVE, and VET.
I’ll also provide updates on two play-to-earn tokens I bought last year in WEAPON and KITTY and explain what I expect in 2022.
Let’s get it!
We’re finally seeing Bitcoin crack the $45,000 area support today.
This was a probability that I’ve discussed for the last couple of weeks. But to be fair, I’ve said Bitcoin is likely to sweep the $40,000 area before moving higher again, which it hasn’t done just yet.
So why do I think a $40,000 BTC is likely?
It all has to do with how Bitcoin has behaved since early 2021.
You see, every time the market liquidates leverage traders with a long lower wick, it ends up filling it before moving higher.
It did it five times in 2021, and we’re still waiting to see if the December 4th candle plays out the same way.
If it does, then a retest of the $40,000 to $42,000 area seems likely.
But I’m not ruling out a move below $40,000, just in case. There’s a lot of confluence around $35,000, which I talked about at length a few weeks ago.
That doesn’t mean BTC will test that area, but I’ll definitely be a buyer if we see those prices.
I still have my orders set between $40,000 and $42,000, with a few below that area in case things get even uglier.
All in all, I think 2022 should be a good year for crypto, and I continue to like the idea of lengthened cycles. It just makes sense.
However, the next few weeks and even months could be a little dicey as we see crypto markets recover from the slump that began in November.
ETH just tested the December 4th low at $3,500. That seemed likely after Ethereum lost the $4,000 handle at the end of November.
The market also tested the descending trend line at $3,420 a few moments ago.
Whether or not ETHUSDT can turn this trend around hinges on $4,000. Only a weekly and monthly close back above that area will reverse the downtrend.
Until then, I think you have to be careful here as we could still see further downside toward $3,100.
I’m going to keep a close eye on AAVE in the coming months, especially if we see another run at the $160 area. That’s been the floor for this market for the last twelve months.
The wedge pattern that’s formed here suggests a possible continuation later in 2022. But only if AAVE can get above the all-time high trend line near $280.
Put simply, I’m a buyer at $160 or following a close above that trend line in the $280 range.
VET never did recover above $0.088 after December’s false break. The market’s failure to hold above that level last month was a key indication that VET was still weak.
We saw the market spike above that area today, but as you all know, the daily close is what matters.
Now, VET is struggling to hold above the short-term trend line near $0.083. Close below that area this week, and we likely see VET revisit the May trend line near $0.073.
I first mentioned WEAPON in December when the token was trading just above $1. It just touched $2 a few minutes ago, which is especially impressive considering the current market conditions.
MegaWeapon is a play-to-earn, battle arena style game that’s set to launch in Q1 of this year. From everything I’ve seen, it looks like a winner.
As for the chart, we saw a dip below $1 over the holidays, which turned out to be a very profitable buying opportunity.
The $1.70 area should serve as support moving forward, with the all-time high of $3.50 providing resistance. Above that would be a blue sky breakout with psychological targets of $5 and $10.
Kitty Inu (KITTYUSD)
Kitty is another play-to-earn token that I was buying last October. The token has taken a substantial hit following an aggressive rally in November.
I’m still holding my position and may buy a little more if the opportunity presents itself.
The kitty token is undervalued, in my opinion, especially when you consider that the game beta releases later this month with the full version coming later this quarter.
I bought more today at support, and I’ll buy more if it dips again. As always, none of this is financial advice, and remember to never invest money you can’t afford to lose.