- Crypto Saving Expert's Newsletter
- Posts
- Crypto Saving Expert Newsletter - Issue 117
Crypto Saving Expert Newsletter - Issue 117
Good afternoon! Bitcoin made headlines after surpassing $69,000 on Sunday night, sparking excitement in the market. Let's dive in for a closer look at what is going on behind the scenes with bitcoin and the overall Web3 market. 👇
This week's issue will feature technical analysis of bitcoin, liquidity levels, and Solana, as well as important dates and key news stories.
Table of Contents
Sponsored by: Stonksy
Stonksy is a momentum identifier that aims to capture expansive market moves before they happen by highlighting the start of potential price shifts. It can be used across all markets, including crypto, stocks, indices, commodities, and currencies.
Stonksy is growing in users week-on-week and is proving why it aims to become one of the most-used indicators in the industry.
NEWSLETTER SPECIAL OFFER: Sign up to Stonksy today on any of the plans and receive 10% off with code NEWSLETTER for the next 24 hours.
Find examples of Stonksy indications posted to X every day: @stonksyio
Learn how to use Stonksy and how it can benefit your trading system on the YouTube channel.
Bitcoin Edges Closer To A Breakout
After crossing $69,000 on Sunday night, bitcoin is positioning itself for a possible run to the highs.
Bitcoin Outlook
Bitcoin has made excellent strides over the last week and had its first test of the big overhead supply.
Following the sweep of liquidity in the early hours of Tuesday, bitcoin must build momentum towards $70,000 from here.
Weakness in the price could cause bitcoin to tumble towards the $63,000 level if the momentum is not sustained.
Weekly Chart
Bitcoin’s weekly chart is shaping up well after the candle last week, when the price broke through the downtrend.
Bitcoin also recorded its highest weekly close since early June.
Still, it is imperative that bitcoin closes relatively strong this week and does not retrace last week’s candle upon the Sunday close.
For more upside, bitcoin could chew through the overhead supply before coming down and setting a bear trap before full expansion occurs. This is one of many scenarios on the table from here.
Liquidity Levels
As seen in the image above, there are billions of dollars in liquidity resting above $70,000.
This is one reason why it makes logical sense for bitcoin to at least test the highs as the mammoth amount of liquidity waiting to be taken.
This could be the driving force for bitcoin’s breakout as we have seen previously when, after compression and consolidation, bitcoin moves aggressively to the upside.
Solana’s Bullish Chart
Solana has arguably one of the most bullish charts in the industry.
Its monthly chart is shaping up for a triple threat attack towards the highs.
After over eight months, Solana is undergoing a volatility contraction pattern inside its current range, which suggests an expansive move is on the horizon.
Secondly, the chart has formed a massive cup and handle pattern, also pointing to the upside. Finally, a bull pennant is also coming to fruition, all of which point towards a rally to $300-$400.
Fear & Greed Index
The Fear and Greed Index shifted into greed following bitcoin’s strong move up towards $69,000 last week.
The Index scores 70 as market participants await what could be a phase of expansion for bitcoin. However, a firm rejection under $70,000 again could see bitcoin tumble and sentiment drop again.
Important Dates
Thursday 24 October, 13:45 UTC - S&P Global Manufacturing PMI
S&P Global releases the Manufacturing Purchasing Managers Index (PMI) data, which measures the manufacturing industry. The data is a crucial measurement of the US economy as it is a significant portion of the revenue for large businesses.
The data is not forecasted, but a score above 50 indicates economic growth.
Thursday 24 October, 13:45 UTC - S&P Global Services PMI
S&P Global also releases a second piece of data, the services PMI data, which measures the service industry. The data is another factor alluding to the economy’s strength as it makes up much of the GDP alongside manufacturing.
The data is not forecasted, but a score above 50 is seen as positive.
Gainers
Losers
Solana at a Crossroads: Bull Flag Hints at $250, but a Dip to $100 Lurks
A bull flag on the weekly Solana chart hints at a breakout to $250. But a failure could open the doors to a crash towards the $100 support.
For the better part of September and October, Solana has taken a back seat as many investors and traders focus on Bitcoin.
However, that might change as Solana has printed a bull flag on its weekly chart, signalling a potential rally to the $250 resistance last witnessed in November 2021 when it made an all-time high of $259.90.
The SOL/USDT weekly chart below shows that the pole of the bull flag started forming in October 2023, when Solana was around $20, and extends to the local peak of $210 in March this year, where the flag’s formation begins. A confident breakout above the flag could ignite a rally to $250.
However, such a bullish scenario is highly dependent on Bitcoin living up to expectations of setting a new all-time high before the end of the year.
Conversely, Solana risks a massive correction towards the $100 support at the bull flag's lower boundary. The chances of such a dip increase once Solana falls below the 50-week (red) moving average.
Another contributing factor to Solana entering bear territory is if Bitcoin fails to live up to expectations of setting a new all-time high in the fourth quarter of this year, fueled by the anticipation surrounding the US presidential elections and the optimism that the trading of Bitcoin ETF options will increase inflows of the same ETFs.
Memecoins Could Offer a Lifeline for Solana
From a fundamentals point of view, a Solana crash to $100 could be negated by demand for SOL from memecoin traders and creators on its network.
Memecoins have had an impressive year fueled by the Solana-based memecoin deployment platform Pump.fun, which is allegedly planning a token launch soon.
Such an event will likely shine the spotlight back on Solana, increasing investor and trader interest.
Pump.fun Announces Upcoming Token Launch and Upgraded Trading Terminal 'Pump Advance'
Could Pump.fun be about to release a token? The team hinted at such a possibility during a recent X space, where they also announced their upgraded trading terminal, known as “Pump Advance.”
The team behind Pump.fun, the leading memecoin deployment platform on the Solana network, recently revealed plans for a future token launch and an upgraded trading terminal called "Pump Advance."
The team made the announcement during an X Spaces event on 19 October. However, the Pump team has yet to provide a specific timeline for the token release, leaving the community eager for further updates.
Key Features of Pump Advance
The Pump Advance platform introduces several innovative features to enhance the memecoin trading experience.
These developments include mini-charts, data on top token holders, and social indicators designed to help traders better navigate the growing number of memecoins. Additionally, Pump Advance will offer 0% fees for the first month and incorporate advanced login security measures through Privy, improving user safety.
Challenges for Pump.fun’s Memecoins
Despite its popularity, Pump.fun faces significant challenges.
According to Dune Analytics, approximately 98.5% of memecoins launched on the platform fail to list on Raydium, a decentralised exchange on the Solana network. To address this, Pump.fun introduced an $80 incentive in August 2024, encouraging token creators to complete the bonding curve and successfully list their tokens on Raydium.
Critics note the slim chances of selecting a winning memecoin on Pump.fun, with one trader estimating the success rate at just 0.12%, likening the platform to a "slaughterhouse."
However, despite the high rate of failed token launches, Pump.fun continues to attract significant user activity.
Record Revenue and Platform Success
On 13 August 2024, Pump.fun generated over $5.3m in a single day, surpassing the collective revenue of the 24 largest crypto protocols combined during the same period. This impressive figure highlights the platform’s continued success, even in the face of industry challenges.
The Memecoin Debate
Despite the positive news for the platforms, memecoins themselves remain a highly contentious form of digital asset. Their controversy is routed in their function, or lack thereof. Due to this, they are often seen as speculative, high-risk assets with little to no intrinsic value, primarily driven by internet trends, social media hype, and community-driven momentum.
Critics argue that memecoins encourage reckless gambling and expose investors to extreme volatility, with the majority of projects failing or turning out to be scams. Despite this, memecoin proponents claim that they can democratise access to crypto, providing fun, low-barrier entry points and sometimes generating significant returns.
This divide has sparked heated debate within the crypto community about their legitimacy and long-term sustainability.
Bitcoin’s Bull Flag on the Weekly Chart Points to New ATH in Q4
Anticipation for the US presidential elections and the SEC approving Bitcoin ETF options could fuel a breakout to new all-time highs.
Bitcoin could be gearing up for a significant price surge as the number one crypto has printed a bull flag in the weekly chart, as highlighted below.
Bitcoin’s bullishness is further confirmed by its weekly MFI (green), MACD, and RSI (red), which exhibit improved buyers’ strength and could result in a retest of March’s all-time high of $73,777 sometime next month and a new all-time high before the end of the year.
In addition, the background and momentum of the Stonksy indicator are also green, suggesting a favourable environment for Bitcoin for the rest of the year.
US Presidental Elections and Bitcoin ETF Options Could Fuel the Rally
Besides the bull flag on the weekly chart, Bitcoin’s push to new all-time highs could be fueled by two fundamental factors.
Firstly, the US presidential elections scheduled for 5 November have brought optimism that the next administration will soften its stance on Bitcoin and crypto regulation. Both former President Trump and Vice President Harris know that crypto holders in the United States are a significant voting block that could sway the outcome of the elections.
Consequently, both camps have made numerous attempts to secure their votes by promising better policies and a conducive environment for crypto and blockchain technology in the United States. However, Trump has accumulated a significant head start over Harris, especially after Elon Musk endorsed the former president as the next occupant of the White House.
Secondly, Bitcoin could rally to new all-time highs due to increased inflows into Bitcoin ETFs (exchange-traded funds) after the US SEC approved the trading of options tied to the same ETFs.
The regulator on Friday gave the green light for the New York Stock Exchange (NYSE) to list and trade options linked to the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust BTC and the Bitwise Bitcoin ETF. Similarly, the SEC okayed the CBOE Global markets to list and trade options tied to the Fidelity Wise Origin Bitcoin Fund and the ARK 21Shares Bitcoin ETF.
👉 If you're eager to connect with like-minded individuals and propel your crypto success to new heights, then CSE Plus+ is the community you've been searching for.
🏎️ In the fast-paced world of cryptocurrencies, networking with fellow enthusiasts and experts can be the key to unlocking valuable insights, innovative strategies, and profitable opportunities.
👥 Our exclusive Discord channel is where passionate crypto aficionados converge, sharing their knowledge, experiences, and market analyses.
🤝 Together, we're shaping the future of crypto, and by joining CSE Plus+, you'll be at the forefront of this exciting journey towards financial empowerment and crypto excellence.
🚨 FREE TRIAL: CSE Community Plus (monthly)
🔓 Unlock exclusive access with code UPTOBER
🤝 This is your chance to join for FREE (Saving *£100)
🫵 Don’t miss out on this one-time offer!
Fact-based news without bias awaits. Make 1440 your choice today.
Overwhelmed by biased news? Cut through the clutter and get straight facts with your daily 1440 digest. From politics to sports, join millions who start their day informed.
This Newsletter is strictly for informational purposes only; the content is generic and has not been tailored in any way. Crypto Saving Expert UAB (“CSE”) is not providing, and should not be interpreted as providing, any form of offer of any currency, security, financial instrument or digital asset, or investment advice, recommendations or strategy. The content of this Newsletter is not intended to replace your own research with regard to any assets, products or services, and any action taken on the basis of this material is entirely at your own risk. CSE neither accepts nor assumes any liability or responsibility for any loss or damage arising out of, or in any way connected to, the Newsletter content. Cryptocurrencies and digital assets may be unregulated in your jurisdiction, any profits may be subject to tax and the value of any investment could fall.
If you click on a link within this Newsletter to go through to a provider, we may get paid. This usually only happens if you get a product/use a service from it. This is what helps fund CSE and keeps the majority of our content free to use. Two crucial things you should know about this, however: a) this never impacts our editorial recommendations, if something is included, it is because we independently rate it as the best; and b) you will always get as good a deal, or better, than if you went direct. For full details on how CSE is funded, please click here.
CSE collects, processes and stores certain data. Such data may be shared with CSE’s wholly owned subsidiary company, Crypto Saving Expert Limited. Please note that by submitting information about yourself to CSE you are consenting to such use. For full details on our collection, processing and storage of data, together with your rights in relation thereto, please consult our Privacy Statement here.