Will Friday be the new dump day?

15.09.2023

Dear traders,

The market is hitting resistance and could continue to drop in the coming days.

Jake
TOP Trader

BTC has encountered strong resistance at 27k and will likely continue to drop if this resistance is not broken on the daily chart. If it remains below this level, we can expect further price decreases before the market updates.

ETH is facing strong resistance at 1630 and could experience a larger drop in the coming days. It still appears bearish, with the potential for a further breakdown.

XRP is still struggling to break through the $0.5 resistance level and could plummet quickly in the coming days.

LINK is still holding above the $6 support level and needs to maintain this level for the next leg up. If it breaks this line on the daily chart, we may see a substantial decline.

SOL is fighting to stay above the $17.5 support level and needs to break above $20 for a bigger push up.

EOS continues to drop and is filling the gap below, with a significant possibility of hitting new lows.

LTC has dipped below the $65 support level and is losing momentum, increasing the likelihood of a more significant breakdown.

DXY has bullish momentum and needs to hold above 105 to continue its trend.

Crypto/stock daily news:

4 REASONS THE BEAR MARKET COULD CONTINUE

Crypto is battling a 4-headed monster right now. Each “head” represents a reason why the bear market could continue longer.

Today, we’re gonna take a look at each one and explain why they’re a problem.

(1 = “I ain’t worried bout nothin”. 10 = “Help mommy, I’m scared”)

THREAT #4: CRYPTO HACKS

What’s the problem: crypto has been plagued with hundreds of hacks.

In fact – there have been over 400 hacks, resulting in over $8B stolen since 2021.

I repeat, 8 BILLION dollars.

When I first joined crypto, it felt like you were hit by a stun grenade every time you’d hear of a major hack. They were rare.

Fast forward to today, hacks are a weekly event. They happen just because it’s Tuesday.

Why it’s a problem: hacks are sh*tty, but crypto hacks are extra sh*tty…

In traditional finance: you can get hacked but there’s a process in place to help recover your funds.

It can be long (and painful). But nonetheless, there is a process.

In crypto: there is no process. No customer support. No 1-800-I-GOT-REKT number to call for help.

Nada.

As more people get hacked, more people will end up leaving the industry. (or worse, they’ll never even enter the industry due to the fear of getting hacked)

While crypto hacks have been slow this year (only ~$1B has been stolen so far in 2023), they’ve recently started to pick back up again.

And the problem isn’t just the hacks themselves, it’s also who’s behind them.

Without further adieu, meet your hackers…Kim Jung Un and The Boyz.

[Side note: that kid sitting down might have the scariest job of all time. I’d rather be the guy who used to be Mike Tyson’s personal punching bag.]

Okay, back to what I was saying.

Over the last 102 days, N. Korean hackers have stolen ~$270M from crypto projects. That’s an average of ~$2.64M, every single day for the last 3+ months… (!!)

In total, it’s estimated that North Korean hackers have stolen $3B+ from the crypto industry.

Basically, crypto is Kim Jung Un’s new piggy bank. And not only are investors getting rekt, but the stolen funds are also being used to buy some new toys (aka nuclear missiles).

It’s a double whammy and a big stain on the industry’s name.

As long as projects continue to ignore security problems, crypto will continue to be the Wild Wild West of Crime.

THREAT #3: CRYPTO’S LIQUIDITY DROUGHT

What’s the problem: liquidity and trading volumes across crypto are down, big time.

Both on-chain and off-chain volumes are at historical lows, according to Glassnode.

Trading on centralized exchanges is at multi-year lows.

Weekly NFT volume is also at a multi-year low.

In other words, crypto is drier than the Sahara desert.

Why it’s a problem: crypto is a lot like a college party…when there’s a lot of liquidity, it’s a great time.

But once the liquidity runs out, things start to get rough. People lose patience and you’ll see 4 dudes fighting over a tiny Coronita beer.

The same thing is happening in crypto – investors argue all day long while trading (and dumping on) each other.

It’s getting ugly out there in the markets and without new liquidity coming in (aka new investors), it’ll be hard for crypto projects to see any real growth in the near future.

THREAT #2: CRYPTO REGULATION

What’s the problem: U.S. regulators are cracking down on anything and everything under the crypto sun.

The SEC and CFTC have charged…

Crypto exchanges

DeFi protocols

NFT projects

Celebrities and investment firms that promote any of the above

It’s been one big regulation party where instead of music and drinks, there are criminal charges and 100-page lawsuits.

Why it’s a problem: Unnecessary regulation will stifle innovation in the crypto space.

When big players are forced to pay multi-million dollar fines and shut down certain operations, it leads to fewer companies and VCs investing money (and time) into crypto-related projects.

Or worse, they’ll just leave the market entirely.

Regulation is needed to bring crypto out of the shadows and into mass adoption but, right now, regulators are acting like middle school safety patrols – they’re writing everyone up with charges.