#Bitcoin - What's Next?
The big Sunday report, all you need to know:
🚩 TA/LCA/Psychological Analysis: In last week's Sunday report, we discussed an anticipated sideways movement in the larger timeframe. As observed, Bitcoin is perfectly moving in this sideways region as mentioned. Some people fail to catch the bigger picture, not realizing that a price fluctuation within a 20% range is quite normal for movements in large market caps, and even beneficial, as BTC is gearing up for its next massive leg up, a leg up that will bring us above 80k and reaching 100k in high speed. In trading terms, we refer to this bullish sideways movement as an accumulation region – a phase where profit-taking money, incoming investment, and undecided money converge, resulting in a consolidation in the mid-term timeframe. As I've mentioned before, this sideways movement is bullish, and we're poised for a significant upward move.
What many fail to understand is that Bitcoin just broke through its all-time high (ATH) in the last few weeks and is now slowly building support near the ATH region. People don't realize that this is a process that takes weeks, and I told you we would stay in the region of the Golden Bull for weeks before continuing to rise, entering the super cycle. It's only a matter of time before we see Bitcoin climb above 70k and enter the super cycle after confirmation at 72.5k; people need patience, but most lack precisely this. We need strong support near the current ATH region, and BTC is doing exactly that. Compare it to previous ATH breakouts and observe how BTC behaved; you won't see many changes but a few weeks of sideways movement and building support, and sometimes a 20-30% correction in that region. Regardless, Bitcoin looks very bullish, and we can confidently say that the next leg up is only a matter of time. We have seen selling pressure from Grayscale recently; the weak and paper hands can be found panic-selling according to on-chain data that shows new buyers tend to sell in recent days, while experienced traders and BTC whales have rebought during this correction. The sell pressure is over from the retail side, and the funding rate has already cooled down.
I liked seeing Bitcoin retesting the previous ATH level in the 60k region. Watch the chart closely, and you will notice a very strong resistance at 60k at the beginning of 2021. Then, in October 2021, you can see how Bitcoin managed to break out above the mother of all resistances at 60k and reached the ATH of 69k before entering the bear market. Now, Bitcoin seems grown-up enough to handle this pressure at 60k and easily stays above it without much trouble. You can clearly see how the previous 60k resistance is slowly turning into a strong support, forming our base for the incoming super cycle, which is loading and only a matter of time.
For me, there is no reason to be scared; these corrections are pretty normal in every bull market. Remember, the halving is coming in 25 days, and the mother of all bull markets hasn't even started yet. Patience, we have a lot of green coming, and I keep accumulating new coins that are worth it for a long-term investment, coins I have spent hours researching and publish in my long-term investment channel, which is included in premium (@DrProfitPremium). Besides of that I still hold all Bitcoin and ETH I have bought at $16.000 region.
In terms of Calendar we have the Final US GDP q/q on Thursday and a Powell speak on Friday.
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The reason why I invested 20 ETH into @CellMatesERC and it's new ERC20721
In this longer post I will 'dumb down' how I see the technical aspect of it and what the utility can bring for NFTs in this space.
It's all about Liquidity! Thanks to @blur_io we have gotten a lot of extra liquidity in this space, which is helpful. Thanks to that traders can trade NFTs, but it's still hard, traders can withdraw their liquidity and a lot of collections are dominated by a few people and go through huge drops and at the end of the day, a reward for providing liquidity will go away, with no incentive, there is no reason to do it.
We know liquidity pools very well from tokens, we for example all know @Uniswap and how you can bring liquidity into pools, single sided or 2 ways (the token + ETH for example). In return you get rewards providing liquidity. A concept that has been around for a few years now and which has been really helpful.
Personally almost never use any CEX anymore and for all my tokens I just use Uniswap as it's easy, you can go in and out fast.
So what if I told you with ERC20721, you can trade your NFTs through Uniswap. You can provide liquidity and get rewarded for it. In a way that's what it does, in a nutshell.
Let's look at CellMates. It has 2 tokens 1) $CELL and 2) $WCELL.
$CELL is the token of the NFTs, there are 256 of them, which is the same supply as the NFTs and the tokens. So you can only buy 1 $CELL, which is the token and the NFT.
$WCELL is the fractionalized token of the NFTs, you can now split into millions and can essentially buy $ 1 of $WCELL. You can do this through Uniswap, it's essentially a token that's being traded now.
1 $CELL will always be 1 $WCELL. However $WCELL can be divided into many pieces.
So why is this helpful for the space. Well let's say you want to buy a @cryptopunks but you don't have $ 150,000 lying around. You do have $ 15,000 and would like to own a part. There are 10,000 Punks and we now have the $PUNKS token which is 10,000 of them and the $WPUNKS token which is still 10,000 but you now can buy for example 0.1 $WPUNKS which is $ 15,000. You now are invested in @cryptopunks rather than owning one, you own 0.1. When you buy 0.9 $WPUNKS more over time, you own 1 $WPUNKS, which you can trade for a $PUNKS and get your NFT.
So this is a part I am not really sure about how this will work. With @CellMatesERC there are 256 NFTs, when you wrap your $WCELLS for a $CELLS, you get the first token ID that's in line. So based on rarity, a lot of people will wait for it to be a rare one and swap that one.
I am curious, practically how this would work with a bigger collections, like Cryptopunks that has a lot of traits, etc. But afaik, CellMates did solve this, but will learn more about that in the future.
I will focus on the basis now, and that's what I explained, buying into a NFT project without owning a whole NFT, which especially is helpful for more priced collections.
The other perk is, tokens just always have bigger liquidity pools, its easier to swap tokens in and out, and that's the advantage you get as well.
I think the fact you can just Uniswap, just builds to this case. Its really easy to build an NFT collection, add liquidity to it and now collection can be trader in 2 ways, through the NFTs itself but also in a fractionalized way through the wrapped token.
For something to work it all comes down to the useability of it, so far how this works, it's pretty easy. Nobody really needed to explain it to me more than 3 minutes and now it's easy.
What did I do?
1) I bought $WCELL on Uniswap
2) I used @CellMatesERC their website and swapped my $WCELL for $CELL
3) I got my NFT in my wallet
It's simple as that.
If I don't want to list my NFT and wait for it to be sold, I can alway just wrap it back to $WCELLS and sell it into the liquidity of the pool, or in small parts to avoid slippage.
At the moment the marketcap is 256 x $ 45,000 = $ 11.5 million. Which obviously is fairly low, especially compared to @Pandora_ERC404 at $ 158 million.
It has a lot of potential in my opinion, however it depends on a lot of factors:
* How will the tech reach people
* Will it be adopted
* Will there be a community around it
* When will there be an official audit and what will the outcome be
* Will people see the useability of it and so on
For now I am invested and going to learn more about it and try to help out a bit and see if it really has legs and potential.
$WCELL can be found here:
https://t.co/cSzPwmfhjB
🌕😼