March 28, 2024

BTC/USD Bearish Retest – Technical Review February 22, 2022

This week's spotlight is on Cred and DonAlt, the smug boomers of the Technical Roundup. The authors discuss the resultsbearish retest of BTC/USD.They also share a similar view regarding the ETH/USD pair. The final section is the first part of the «Comments Corner». Each week they will include interesting media stories and offer some analysis. This week will briefly discuss NFTs and gaming.

https://coinmarketcap.com/coins/views/all/

Bitcoin bearish retest unfolds

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The market is trading below $40,000, having found resistance.

Our opinion last week wasthat the market has at best reached "coin toss territory". In recent reviews, we have argued that just as $30K is strong support, $40K is strong resistance.

The support supported, and now the resistance is resisting. Both structures underwent their first trials.

What now?

Purely technically, as before, two things are important.

First, the big picture: $30,000 area.is the monthly support and the strongest support on the chart. If the market is bottoming in the absence of another significant momentum below, this area should hold on the higher time frame. If you want to dig deeper into what this deal could look like and some of the potential variables, Cred discussed it in detail in his video.

Secondly, on lower timeframes we are looking forsigns of strength and engulfing in this potential higher low area. The picture at the macro level still looks like crap (not shy about expressions), and the market structure is bearish. Intervening before a bearish retest is a risky business. Accordingly, we would like to see at least some evidence that the market will not just turn over. In particular, on the daily timeframe, the market is currently trading below the daily levels of $38k-$40k. Restoration of these levels would lead to the actualization of higher values. We hit a bull drum on the first test of the lows at $30k.

We beat the drum of caution when retestingresistance in the middle of $40 thousand. Both retests were the first, and this added credibility to our ideas. The market is currently in an awkward area where higher timeframes are seeing inconsistencies (monthly support, weekly bearish retest). We need more evidence, and a retracement of the aforementioned daily levels could tip the scales. At the moment &#171;obvious&#187; the movements have completed and more data is required.

Ethereum Weekly Lower High

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The ETH/USD pair fell after testing resistance at $3050-$3310.

Like the bitcoin/dollar pair, the market has bounced from support to resistance and is now swimming back down.

To be honest, unlike BTC/USD, we don't seea credible area for a possible higher timeframe, above the low near current prices. Of course, if BTC/USD finds a bottom, then ETH/USD is unlikely to disappear, however, purely structurally, there is no similar structure with a large low that would be striking.

At a stretch, the $2700 area is probablythe best candidate for this, but at the time of writing this level is being tested as resistance after the weekly close. This higher timeframe close does not currently imply a higher low.

As before, our gaze is riveted toan untested range low just below $2k. This is probably the best untested structure on the higher time frame in the USD pair. Everything else that is below the market price is not obvious.

As for the pair with BTC, there is stillnothing interesting. In our opinion, this is a great early bull market pair and a late cycle pair to follow, but current conditions are not ideal for getting an eye on higher Ethereum/Bitcoin timeframes.

In summary, we can say that resistanceheld, and major currencies (both bitcoin and ethereum) are recovering their positions. As for bitcoin, given that the market is still in a wide area of ​​monthly support, looking for a higher low once there is more evidence of this is pretty reasonable. For Ethereum, the higher low is less clear, but there is good technical structure at $2k. In terms of continued momentum, a break above the respective pair range midpoints ($46k, $3310) remains a worthy conservative trigger. As for everything else, we want to see more price action now that the first tests have passed.

Comment Corner: NFTs and Games

https://www.theblockcrypto.com/linked/134879/crypto-exchange-ftx-us-gaming-unit

According to our friends from The Block, FTX.US is launching a new gaming business. The idea is to “help game studios integrate blockchain and NFT technology into their games.”

Games and NFTs have a tense relationship, to put it mildly.

Many (if not most) gamers abhor the idea of ​​NFTs and are very vocal about it.

Some opportunistic game studios, eventhose with no plans to integrate the NFT in the first place have made public statements on twitter criticizing the ideas of the NFT, much to the delight of their audience.

It's a strange form of pandering to outrage, butwhy does it work so well? Intuitively, one would think that with gamers spending so much time online and in the metaverse, NFTs would be a natural fit. Whether it's digital collectibles, tokenizing achievements, transferring ownership of items/skins, creating a broader economy that isn't just circular, etc., surely there's something to it?

One argument could be that gamers,most likely, they have heard about cryptocurrencies and NFTs before, but have not invested. Those who did this made a lot of money, and so the outrage of gamers is a kind of reflex reaction to the fact that many people got rich on something that they knew about, but did not act on.

We believe this may be true in some cases, but there is likely a more convincing explanation.

In particular, gamers were constantly disappointed inhyperfinancing their favorite games for the last 5 or so years. Microtransactions, loot box culture, in-app purchases, pay-to-win, studios making money selling pre-orders just to launch a junk product on the first day, and so on.

It wasn't pretty.

Accordingly, we can understand the natural aversion to Web 3/crypto bros encroaching on their property in what looks like further financialization under the veil of NFTs.

We also believe that the outrage is exaggerated.

NFTs are still an early technology.The best we have are images of monkeys on Ethereum, which are regularly phished. Extraordinary claims require extraordinary evidence, and the claim that all forms of NFTs are always detrimental to all games is a huge claim, especially in the absence of any good case studies.

If you are into crypto, you probably enjoy experimenting. We are very interested to see how even very small and independent game developers are experimenting with NFT integration.

There is no single or correct way to do this,but in a world where even simple things like skins and cosmetics make up such a large part of the user experience in these massive titles, it's hard to imagine that some version of transferable, verifiable digital property via NFT is a completely outlandish starting point.

Or maybe Cred is struggling with stress and wants the CS:GO skins he bought at max (noticing a trend) to be carried over to the next iteration of the game.

Who knows.

P.S.This is more aimed at existing game developers working with experienced blockchain developers to see if NFTs can add anything to an already good game. We are not talking about blockchain games, which in their current form are crypto farming with additional steps. It's perfectly reasonable to use &#171;make sure the game isn't terrible&#187; as a starting point. Perhaps we will devote another article to this another time.

 

BitNews disclaim responsibility for anyinvestment recommendations that may be contained in this article. All the opinions expressed express exclusively the personal opinions of the author and the respondents. Any actions related to investments and trading on crypto markets involve the risk of losing the invested funds. Based on the data provided, you make investment decisions in a balanced, responsible manner and at your own risk.

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