Welcome Everyone to the Second Chronicles DOSE!! 💸

This is a Weekly newsletter aimed for you to receive comprehensive weekly analysis, research reports, and actionable trade ideas covering traditional and crypto markets.

Every week feels like a year in crypto markets with so much to share and catch up on. I hope you find value in these newsletters and add them to your trading regime to maximise your profits! Enjoy!!

The TLDR; 👀

• BTC and ETH consolidate at the highs await for a move to break resistance. ⏳

• Sentiment reached recent highs but Euphoria is yet to enter the crypto space. 🧠

• Binance has settled with the DOJ for $4.3 Billion. CZ steps down as CEO. 👨‍⚖️

• Optimism (OP) is seeing accumulation below $1.75 and is awaiting a move in the majors before it starts running to new recent highs. 🎯

Market Sentiment 🧠

The current market sentiment is sitting in the Greed region between 66—73 levels. It increased slightly due to an immediate recovery in the majors during the mid week, and continued to consolidation at resistance indicating strength.

It can be observed that since the rally to $38,000, sentiment has been Greedy however only peaks at the 73 level before market consolidation cools conditions in the short term.

We are currently in the “Belief” phase of this new mini Market Cycle that started this year, and in the “Disbelief” phase of the longer term secular bullish market cycle. This is a slow moving indicator, and may not change week to week.

This indicates to me that the trend is almost ready to correct and continue the longer term accumulation trend into the halving, however needs to have a final “blow off top” / Euphoria phase where Crypto Assets are shown on local news stations/inexperienced retail enters the market and institutions begin to exit positions. 💰

Bitcoin Weekly Breakdown

BTC started the Week at $37,490 and saw a mid week correction down to $35,700 before buyers immediately stepped in and bid price back up to the Weekly open and to new Yearly highs at $38,480 which saw resistance and a slight pullback.

This major volatility on Wednesday was due to the former Binance CEO Changpeng Zhao pleading guilty to failing to maintain an effective anti-money laundering (AML) program, in violation of the BSA and has resigned as CEO of Binance. (more on this later.)

The major pivot points for momentum for BTC is above $38,000 where price can effectively ‘teleport’ to the $40,000 psychological level. Major support for BTC is at $36,750 however due to the ranging environment, extra caution has to be taken to ensure breakouts are confirmed and the bulls from previous weeks are just as ambitious to bid price if there are future dips.

I still expect the 20 EMA (grey) to hold as was predicted and did last week, before we see BTC push to new highs above $40,000.

Ethereum Weekly Breakdown

Ethereum is simply following BTC while it’s in a consolidation zone. However is consolidating at a more major resistance level which can provide an aggressive and impulsive breakout if we see BTC start moving higher above $40,000.

Ether started the week at $2,020 and dipped back into the support pocket @ $1,930 when the Binance news was released. Just as BTC rallied back to new highs, Ether followed a similar move and rallied back to the highs of $2,130 with a +10% move where it was met with sellers defending the major resistance zone and signalling that more consolidation is required before the level can be broken.

Ether has managed to confidently turn the $2,000 resistance level into support time and time again. And this week is going to test bulls conviction again as to whether the new now support level @ $2,020 can be defended and price can start accelerating higher into new Yearly highs and confirm a breakout of the recovery pattern.

The major pivot points for momentum is the key $2,000 - $2,020 zone for ETH where a failure to hold can cause a cascading of liquidations back to the $1,930 pocket. BTC is expected to lead the move to $40,000 which will give confidence for Ether bulls to pressure sellers and start creating the breakout move to $2,400 and above.

Patience is required when trading Ether and must need BTC to confirm the breakout before any short term trades can be taken to capture Ethers volatility.

My main goal this week is to be patient and wait for BTC to confirm a breakout. Then catch the Ethereum breakout and make BTC Value as capital flows into more high risk Altcoins.

The King has Fallen. But Crypto Lives On! 👨‍⚖️

Over Tuesday and Wednesday, Binance CEO Changpeng Zhao (CZ) has stepped down as CEO of Binance after a heavy investigation from the Department of Justice (DOJ) which concluded in a $4.3 Billion settlement.

CZ has pleaded guilty to several charges including violating “Anti-Money Laundering statuses” and “Unregistered Securities Offerings”. Binance immediately appointed a new CEO as head of the company, Richard Teng who confirmed over Twitter that Binance’s fundamentals are strong and there is 1:1 backing with customer assets amid over $1B in withdrawals from the exchange on the news.

As always, the saying in crypto goes - “Never trust, verify.” and we are still yet to see if there will be any ongoing complications due to the investigations and departure of CZ.

For now I expect Binance to operate as normal and even provide a clearer path forward in the long term in a more regulated environment and sophisticated asset class.

Weekly Opportunity! $OP 📈💰

Optimism (OP) is a layer-two blockchain on top of Ethereum. Optimism benefits from the security of the Ethereum mainnet and helps scale the Ethereum ecosystem by using optimistic rollups. That means transactions are trustlessly recorded on Optimism but ultimately secured on Ethereum.

Optimism is one of the biggest scaling solutions for Ethereum with over $500 million in TVL. It is home to 97 protocols, the biggest being Synthetix (SNX), a derivatives exchange, Uniswap (UNI), a DEX, and Velodrome (VELO), an AMM.

Paired with the Binance news and CZ’s announcement that he will be focussing on DeFi development, there can be a renewed interest and expansion in the space that OP can benefit and capitalise on as new capital flows in.

In the competitive L2 scaling solutions space, this is one of the most solid projects to hold to capitalise on DeFi growth in the long term. But the market structure also suggests there can be short term moves to capture if bulls remain persistent into the coming weeks.

For the previous 2 weeks OP has opened/closed between $1.80 and $1.78 however on both occasions saw large -10% wicks which were immediacy met with buyers to the $1.60 level and bought back to the $1.8 region. This shows confidence that spot buyers are accumulating cheap OP and taking advantage of the discount before there are potential expansions to the upside.

For OP to make a run to new recent highs, it requires BTC and ETH to remain bullish and for buyers to continue stepping up to support price on dips before a breakout occurs.

For short term traders. Keep an eye on the break of this resistance counter-trendline which should provide an explosive move if and when it breaks!

One to keep on your watch list this week! Let’s see if volatility comes in and we get the breakout over the coming weeks. 📈

That’s a Wrap for this Week! 🌯

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