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Issue 163 – Bitcoin Tests Yearly Open, Plus DXY, ETH, and WEAPON Updates

February 10, 2022


Today’s CPI numbers out of the US are triggering increased volatility today. As expected, markets are heavily focused on inflation as it could mean a more aggressive stance from the Fed.

So today, I’ll provide an update on the US dollar index (DXY) as that’s front and center when it comes to risk on/off. I’ll also recap why the DXY matters for Bitcoin and cryptos in general.

We’ll then get into the BTC chart, an update on ETH, as well as a discussion on why WEAPON has huge potential in the coming months.

Let’s go!


US Dollar Index (DXY)

The DXY is resting on trend line support from mid-2021 after carving a bearish engulfing week.

Typically, a bearish engulfing week after a multi-year uptrend signals a turn lower. So right now, I’m just waiting for the DXY to take out last week’s low of 95.13 to confirm the pattern.

I also want to see the USD index close below 94.60 to secure the first lower low since January 2021. That would certainly help risk assets like cryptos move higher.

Bitcoin (BTCUSDT)

BTC is moving higher after being down earlier in the session. The market seems to have mostly shrugged off this morning’s higher-than-forecast CPI at least for now.

That said, I’m not ruling out a pullback to $42,000 or even slightly lower before the next leg up. That would help to reset the chart and attract fresh demand to take out resistance.

Key resistance remains the $45,000-$46,000 region with a close above that opening up $50,000-$53,000. Just keep in mind that the yearly open at $46,200 will be a critical level to take out.

Alternatively, any rotation lower from current levels likely catches a bid between $40,000 and $42,000.

Ethereum (ETHUSDT)

ETH is shooting for a breakout today above channel resistance near $3,200. It’s an area I’ve discussed for the last few weeks.

A close above would flip the area to support and open up $3,600, and potentially $4,000.

Alternatively, if ETHUSDT fails to close above the $3,200 region, it would remain intact as resistance with key support coming in at $2,800-$2,900.

MEGAWEAPON (WEAPONUSD)

WEAPON is a play-to-earn (P2E) token I’ve discussed since December when it was just above $1. I was also buying it at that time.

Today’s price of $2.40 represents a decent gain since then. However, I think there’s a lot more in store for WEAPON in the coming months.

The team is just waiting on a Certik audit to wrap up and legal to give the green light to launch staking. That could come at any time in the next few weeks.

Given the increased staking rewards that have been accumulating at 3% of daily volume since December 23rd, I think staking is going to draw a ton of attention.

By the way, that 3% that’s been accumulating gets tacked onto the normal 2% of daily volume going forward.

Add in the NFT “Degenerator” that’s launching soon and the full game later this quarter, and you have the recipe for $10-$20 or higher, in my opinion.

Not to mention the fact that the team will be announcing games to be offered as part of the Megaverse. Think Steam only for blockchain games.

As for the chart, it continues to look bullish given the multi-month ascending triangle. Get above $2.50 or so, and we likely see a move to the $3.50-$4 area with a close above that confirming the breakout.

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Justin Bennett

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About the Author

I'm Justin Bennett, a currency trader turned crypto enthusiast.

My journey started with stocks in 2002. After limited success, I transitioned to currencies in 2007, which later became a full time trading gig.

The journey continued, and in 2020, I committed to learning about cryptocurrencies. It was love at first sight.

Cryptocademy.com is the culmination of my love for cryptocurrencies, my passion for financial markets, and desire to learn and teach.

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