Bitcoin and Ethereum are both moving after testing key support areas discussed in last week’s video.
So I’ll provide updates on both in today’s video, along with analysis on several altcoins, including CRO, VET, and TEL.
We’ll also see how our two play-to-earn tokens are doing, WEAPON and KITTY, as both have games launching this quarter.
Let’s get it!
Bitcoin continues its bounce from the $40,000 support area. I’ve talked at length since early December about how a bounce from this area was likely.
However, I’m not ruling out another run at the $40,000 support region just in case this first bounce is a fakeout.
That said, I’m still long BTC from just above $40,000 with an initial target of $45,000. Beyond that is the $53,000 region, which will be a massive test for bulls.
Ethereum is seeing some nice demand today following this week’s test of $2,900.
If you’ve seen my recent videos, you know that the $2,800 – $2,900 support area was of interest. In fact, I was looking specifically for a bounce from this region.
We also saw ETHUSDT close above $3,170 on Tuesday, which should once again serve as support going forward.
Key resistance for ETH is $3,600, which is an area of confluence based on the horizontal level and descending channel resistance from December.
Crypto.com Coin (CROUSDT)
CRO is testing the $0.50 resistance area today on the back of a higher BTC.
That’s going to be a critical area for buyers to reclaim for CROUSDT to turn higher. There are also likely to be sellers at the all-time high trend line near 53 cents.
So that makes the 50-53 cent area the must-break level for buyers. Do that, and we could see CRO churn higher toward $0.65.
Fail to get above 50-53 cents and the next key support is $0.40.
VET dipped below the May trend line at $0.07 on Monday, but buyers have since reclaimed the level.
Now, it’s a matter of taking out the $0.09 resistance area. If bulls can do that, then we could see VETUSDT trend higher toward 10 cents.
But the 9 cent area is likely to be a significant one, so I’d expect a pullback from there if tested this week.
If VET intends to reverse the downtrend that began in November, it’s going to have to close above $0.103. That would carve the first higher high and expose $0.123.
Until that time, it’s all about 7 cent support and 9 cent resistance. Support below the 7 cent area comes in at the 2018 trend line near 6.5 cents.
TEL tested a big-time support area this week just below a penny. It’s an area that served as resistance in March/April of last year and flipped to support in May.
We’ve seen several bounces from the $0.01 area since May, and as long as Telcoin is above it on a daily closing basis, the region will continue to serve as support.
There’s also a trend line off of the November high, which buyers are testing today. This trend line looks similar to the one from May that was broken last August.
A close above $0.0105 this week would secure the breakout and expose $0.014, which is about 36% above today’s price.
Alternatively, a close below $0.009 could pave the way for the first set of lower lows since May of last year.
WEAPON is a play-to-earn (P2E) token that I first discussed (and bought) in December just above $1.
The token reached a new all-time high last weekend of $4.46 and has since pulled back about 50%.
However, I think the project has a lot more in store, so I have no intentions of selling anytime soon. Staking launches in the next few weeks, and the full battle arena style game is slated for later this quarter.
There are only 10 million tokens, so today’s price of $2.90 represents a market cap of just $29 million. I can see that increasing by 10 fold or more once staking is live and the full game is launched in the next few months.
Kitty Inu (KITTYUSD)
Kitty Inu is another P2E token that I announced last year. I was buying the token in late October, just before it surged over 200%.
It has since taken a beating. However, I’ve bought more twice since the January 6th low that I mentioned in last week’s video.
The beta release of the Kitty Kart game (think Mario Kart with playable NFTs) is set to release in late January/early February. And the full game is slated for later in Q1 2022.
Today’s price for the kitty token puts the market cap at $25 million, which I think is a steal considering that the beta release is weeks away. Hence the reason I bought more at these prices.
As always, this is not financial advice, but I think that kitty has the potential to 10x from here once the game beta is out in the next few weeks.