Crypto Update
There are all indications that we could be getting the formal nod on the BTC ETF approval this week.
As repeatedly mentioned in multiple previous updates
There will be a lot of newsflow (some fake some real) before the approval on Twitter etc which could cause wild movements on both sides.
we did get some "fake news/opinion piece" of potential ETF denial that caused one of the biggest alt liquidations of this year.
While the sentiment is full of panic, BTC has barely corrected and has in fact had the highest weekly close since the bull run began.
BTC Dominance too is looking extremely strong.
The way the flows are suggesting + a strong potential catalyst in BTC could further drain liquidity from Alts in favor of BTC.
One more interesting development has happened.
Among Majors, models signaled exit in ETH but not in BTC or SOL yet.
It could just be a fakeout but still worth paying attention to.
A lot of data points fundamentally and flows also suggest that ETH dominance as a dominant Layer 1 is getting seriously challenged.
Lastly, would like to address one query around meme coin picks.
Firstly here is the framework through which memes are picked.
We only get involved in something that has markings of stage 3.
Thats how WIF and others were picked.
Typical price action structures don't work on them coz they are tiny marketscaps.
One tweet or 1 person can move this around both ways.
volumes and socials matter a lot more apart from just price action.
Moving 5-10x in day or having 90% correction should not be surprising.
As repeatedly mentioned in many updates, they will always be zero or hero plays. So they need to be sized accordingly.
WIF was up over 2000% POPCAT was over 1000% at one point in a matter of days since long published.
Both have corrected significantly. How to play them will depend on the individual.
While in hindsight is very easy to tell yourself that you should have booked profits, these could have easily done another 1000% without breaking a sweat.
In the coming weeks will be publishing an update to the bull thesis
among others BONK and WIF will be featured in them as no brainers cycle plays.
While Popcat or Monk are not of the same level as bonk and Wif.
They could still to do well too when the trend comes back into Sol memes.
The volumes/socials/community aspect of these meme coins are still strong.
While many of the sol memes are still not available on Tradingview (tv), you could use the web3quant indicator on WIF and BONK on TV.
Coming to model positions. There are no new entries and few exits.
** Web3Quant is not registered with any financial regulatory agencies. Web3Quant content is purely for research, education, and entertainment purposes and should NOT be considered personalized financial advice. Do your own research and consult your financial advisor.**