Bitcoin continues to lead the crypto market in a consolidation phase that began last January.
In today’s issue, I’ll discuss a new trend line to watch on the BTC daily chart and where ETH could find a bottom in the coming weeks.
We’ll also look at a potential buying opportunity for ALGO and some support and resistance levels for VET.
Last but certainly not least, I’ll talk about our two play-to-earn tokens, KITTY and WEAPON, including key levels and potential in 2022 as we near their respective game launches.
Let’s get it!
Bitcoin is still flirting with the $42,000 support area after bouncing from $40,000 earlier this month. If you’ve followed my videos since mid-December, you know that I was anticipating this move into support.
The question now is, does BTC take another stab at the $40,000 region before bouncing, or is the bottom in?
As I explain in today’s video, I think the best way to go about any entry is by dollar-cost averaging. But, of course, that’s just my opinion, not financial advice.
I still have my long spot position open from the $40,000-$42,000 area. However, I still have additional bids placed down to $35,000 just in case.
A 20-30% bounce from this region remains likely given how Bitcoin has reacted to liquidation candles since the start of 2021.
Resistance for BTCUSDT is $43,500 and $45,000-$46,000. Get above all of that, and I think we see Bitcoin move higher into the $50,000-$53,000 range.
Ethereum is struggling to hold onto the $3,150 support area today after dipping below it earlier in the session.
That’s a support area that was a pivot for ETHUSDT in September. However, a close below it wouldn’t be all that bearish as we’re dealing with a sideways market right now.
Furthermore, a retest of $2,800-$2,900 would provide a much stronger base for a move higher, in my opinion. We saw Ethereum come close recently, but not quite. But, of course, that doesn’t mean we will see ETH test that area.
Resistance for ETHUSDT comes in at $3,500-$3,600.
Algorand is approaching an interesting area on the chart at $1.15. That’s a confluence of support based on a short-term descending trend line from last September and ascending channel support from March 2020.
ALGO came close to testing the descending support today, but not quite. In the coming weeks, I’d like to see the market tag the channel support to trigger a buying opportunity.
Resistance for ALGOUSDT is the descending level off the September high, which comes in around $1.60 sometime in February.
Alternatively, a daily and weekly close below the $1.15 area could spell trouble for ALGO.
VET is once again testing its May trend line support at $0.07 after bouncing from this level earlier in the month.
The $0.07 area will continue to provide support while the price is above it on a daily closing basis.
A close below this trend line would expose the must hold area for buyers between $0.06 and $0.065. That’s the confluence of support we’ve had our eye on for the last few weeks.
The 6-6.5 cent area is the intersection of a key horizontal level since February 2021 and the August 2018 trend line. Any rotation into this area should attract a lot of demand.
Key resistance for VETUSDT is around $0.09, followed by $0.103.
WEAPON (available on Uniswap) is one of three play-to-earn (P2E) tokens I own. The third will be announced publicly at a later date.
The MW team is developing a battle arena-style game that looks incredibly fun to play and watch, which is an underrated quality among P2E games.
In my opinion, the tokens that will do the best will be both fun to play and watch as the latter attracts popular game broadcasters with massive audiences. And MegaWeapon certainly qualifies.
Staking is also planned and, from what I understand, is ready to launch as soon as the third-party audit is complete, which could be any day. On the other hand, the game is slated to launch later this quarter.
The chart has been relatively sideways since reaching an all-time high earlier this month. However, it continues to look poised to move well beyond those highs.
My average entry is just above $1, but I’ll buy more if we see WEAPON test the $1.70 support region in the next couple of weeks.
Given the 10 million total and circulating supply, a $1.70 print would mark a $17 million market cap, which would be severely undervalued, in my opinion.
My sights are set much higher than $3 or $4 for the WEAPON token. I think $10 and even $20+ is more than achievable with staking and a fully launched P2E game.
Kitty Inu (KITTYUSD)
People are sleeping on the Kitty Inu project, in my opinion. Most of the losses since December are the result of a few large holders who became impatient.
But I doubt these prices last with the Kitty Kart game beta release within the next few weeks and the full game later this quarter; think Mario Kart but with your favorite NFTs or meme characters.
As many of you know, I started buying the kitty token (available on Uniswap and Pancakeswap) in late October, so I’m a little underwater even after averaging down on January 6th.
But a token’s price tells you absolutely nothing about a project’s future value. Dislocations between price and value occur all the time, especially in micro-cap cryptos like Kitty Inu.
The chart shows support just below today’s price, along with the potential for a first higher low since December.
A 10x from current prices this year is well within reach, in my opinion.