'21 Crypto Newsletter: Nov 22nd
Bitcoin price action, EthDenver 2022, Monero news and Upcoming Events
This newsletter is focused on current events in the crypto space, sharing projects and people I find interesting, and serving as a resource for upcoming crypto events; locally in Colorado and larger events across the U.S.
Howdy crypto-heads! This “week” I’m covering Bitcoin & Altcoins price movement, talking about an amazing event in Colorado called EthDenver, plugging the Monero news segment I’m part of and updating y’all about our December event:
Bitcoin & Altcoin price action
EthDenver 2022 registration is live
Updates for Denver Crypto Group
1. Bitcoin and Altcoins retrace from ATH
As Bitcoin heads down and drags the rest of the cryptocurrency markets with it the question I’m asking is, “When will we bottom out?”. I’m asking this because in my opinion we are still in a bull market for Bitcoin (and by proxy cryptocurrency as BTC almost always leads the markets). To understand why I hold this opinion please read the previous newsletters in the archive.
Based on some technical and quantitative analysis it seems that we are close to the bottom or it is already in. From looking at the chart for BTC/USD I see a strong support level from $52k-$50k, a level that we have since the ATH and where if the price broke below it I would start questioning this analysis.
Supporting my theory that the bottom is in, the RSI divergence on the 4 hour chart shows a nice increase in Relative Strength over a 4 day period that the price bounced and retested $55.8k.
While this alone isn’t enough for me to execute a trade, the RSI diverging from the price has historically been a great indication for market reversal.
Adding to this theory is the Short Term holder’s SOPR (Spent Output Profit Ratio) or, “How much profit low-timeframe traders are realizing”. In a bullish market is it generally easier to realize more profit, thus when this indicator goes below 1 for too long it’s time to become cautious.
On this chart from Blockware Market Intelligence we see that for now we are holding just under 1 which traditionally is the case for bullish markets. If we drop below 0.95 for longer than a few days/week it is time to start considering a medium term downtrend as a possibility.
Also shown below is the SOPR averaged out for a weekly timeframe and, fortunately this chart is still well above the “Downtrend alert” point. In fact, the weekly SOPRstill has a little bit of room to move down before it truly tests the market reversal indicator level at 1.
Altcoins
So what are altcoins doing this small downtrend of Bitcoin? Mostly they are going sideways or losing marketcap to Bitcoin as investors flee the riskier investments and consolidate into the more established and well-known cryptocurrency. This trend generally happens any time Bitcoin heads down significantly and plays a large part in why I consolidate to higher market cap cryptocurrencies if I believe we’re in a bear market.
Notable exceptions to this rule occurred in Ethereum, Monero and Cosmos who have all appreciated when compared to Bitcoin over the last 4 days (the same period when Bitcoin initially tested $55-56k and then re-tested to end up at the same price). I’m sure there are others but these 3 are on my “short-list” for accumulation so I was happy to see them hold up during a Bitcoin price correction.
2. EthDenver 2022 Registration
I’ve attended every EthDenver and can unequivocally state that…they are awesome!
This year will have an in-person venue while still supporting people who want to attend virtually. Attendance is free (you just have to fill out the registration info) at https://www.ethdenver.com/apply
The main draw for me is the ability to mentor the teams building cryptocurrency and Web3 applications for the hackathon as well as hearing some of the best and brightest speakers the cryptosphere has to offer.
While the event is obviously focused on Ethereum, the hosts and attendees are not toxic or dismissive of alternative technologies. Overall EthDenver is a great way to expose yourself to the global cryptocurrency community in a safe and inviting environment (children welcome!).
Registrations are free and live now so fill it out and reserve your spot!
3. Denver Crypto Group updates
Investing Roundtable for December
On December 16th at 7pm I will be hosting a free, in-person event at the Smoky Hills Library. This event is an “Investing Roundtable” where you’ll be able to ask me and the attendees about crypto projects you’re interested in.
For this event we will start with some basic info about beginning your cryptocurrency journey and then move on to discussing the projects that attendees are most excited about.
Generally the group shares their opinions on potential projects and asks questions related to it. This is a great way to talk shop with other crypto-heads and make sure you're not missing out on valuable projects in the crypto space.
Again, this free event is being held on 12/16/21 at 7pm Mountain time. We will be in Meeting Room A of the Smoky Hills Library, address of 5430 S Biscay Cir, Centennial, CO 80015.
Monero News
Shameless plug for the “Monero News” segment that Csill and I are still creating for the Open Economy Initiative’s Youtube channel.
If you’re interested in privacy and fungible cryptocurrency please give us a like or subscribe!
Blockchain Development
I’ve recently added to the services offered by the Denver Crypto Group’s consultancy to include blockchain and smart contract development.
As part of my business consulting work I’ve started working with a 17 person team who’s portfolio of deployed work includes many of the most popular smart contract platforms (Ethereum, Avalanche, Solana, Binance Smart Chain, Polkadot and others).
If you need any help or just want someone to build a blockchain or cryptocurrency based project for you please reach out to me for a quote - matt@denvercryptogroup.com
That’s it for this week, stay happy and healthy and I’ll catch you soon!
Much Love,
~Matt