Today’s Narrative - 📉Bearish📉

Macros

• Unemployment Rate: Higher than expected; cooling down market price action.

• CPI Data: Releases often create pre-event sell-offs, which is why we’re seeing a lot of dumps right now. However, it does offer potential entries for trades.

• Year-End Effects: Traders may lock in gains and take time off, resulting in lower trading volumes.

• BTC Dominance (BTC.D): Finding daily support, indicating potential outperformance of BTC against altcoins.

• USDT Dominance (USDT.D): Finding support levels hinting investors are profit-taking before CPI data.

• ETH/BTC: Currently pushing a resistance area suggesting alts may stall until ETH gains momentum again.

Crpytos

• Historical Patterns: Altcoin parabolic seasons typically last 3–6 weeks; we are nearing the end of this cycle.

• Market Trends: ETF momentum cooling; significant rise in Open Interest (OI) for alts without corresponding price increases, signaling potential corrections.

• MicroStrategy & MARA: Slowing their BTC buying pace cooling the current rally.

• New Token Launches: Tokens like $HYPE, $XION, $MORPHO, $MOVE, $CULT, and $PENGU are drawing capital but may face sell pressure from vesting periods.

• Bitcoin & Ethereum: Maintaining bullish bias, though we see momentum slowing down.

Our Stance

No need to dive headfirst into trades today. Timing bottoms during a leverage flush is like trying to catch a falling knife—better to be fashionably late than prematurely wrong. With CPI data on Wednesday, the selling pressure could stick around for a bit longer, so let’s chill and play it safe. If you’re itching to go long, keep your size smaller and wait for the market to confirm your bias before doubling down.

This week might feel bearish, but don’t panic—dips are part of the game. We’re still seeing higher weekly closes for BTC and ETH, which keeps our overall outlook bullish. Let the market breathe, stay patient, and remember: the best trades come to those who wait.

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📉Bearish📉

Cardano’s Twitter Got Hacked

Imagine waking up to find your favorite brand’s official account spreading lies. That’s what happened to Cardano, one of the big names in crypto, when hackers took over their Twitter/X account over the weekend. They posted fake claims that the SEC (the U.S. financial watchdog) was suing Cardano, that trading would stop, and even that some tokens would be destroyed.

The result? Chaos. People panicked, and Cardano’s token, ADA, briefly dropped by 4%. Cardano’s founder, Charles Hoskinson, quickly confirmed the hack, dismissed the attackers with a cheeky “Try harder hackers,” and the team deleted the fake posts. Crisis averted, right? Sort of.

The Big Picture

Crypto is fast-moving, and incidents like this show just how much influence a single account or tweet can have. While Cardano’s price dip was temporary, it highlights three key lessons:

1. Market Sensitivity: Even a whisper of bad news can trigger sell-offs. For traders, this is a reminder to pause and verify before reacting to headlines.

2. Security Gaps: If a major player like Cardano can get hacked, it’s a wake-up call for everyone in the crypto space. Secure your accounts and stay skeptical of too-good-to-be-true claims.

3. Resilience: Despite the chaos, ADA’s quick recovery shows that the crypto market is maturing. Fake news may cause short-term turbulence, but fundamentals win out in the end.

📈Bullish📈

Amazon and Bitcoin: Shareholder Push for Crypto Treasury

Amazon is being nudged toward the Bitcoin bandwagon. A group of shareholders, led by the National Center for Public Policy Research (NCPPR), has formally requested that Amazon allocate 5% of its assets into Bitcoin. Their pitch? Bitcoin’s track record of outperforming traditional assets makes it a solid hedge against inflation and a move to protect shareholder value.

This isn’t a completely new idea. Companies like MicroStrategy have already set the benchmark, turning Bitcoin into a treasury darling. MicroStrategy’s Bitcoin strategy has not only made headlines but has also delivered staggering returns—its stock outperformed Amazon by 537% over the past year. So, the precedent is there, and the shareholders are asking, “Why not us?”

The Bigger Picture

Amazon isn’t the only tech giant feeling the heat. Microsoft shareholders are set to vote on a similar proposal next week, reflecting a broader trend of corporations considering Bitcoin as a financial strategy rather than just a tech experiment. While companies like Tesla have dipped their toes into Bitcoin with mixed results, the idea of diversifying treasuries with crypto is gaining traction as markets navigate inflation and shifting financial landscapes.

For Amazon, this decision isn’t just about numbers; it’s about positioning. A move into Bitcoin could signal to investors that the company is forward-thinking and aligned with the future of decentralized finance. But let’s not forget the risks: Bitcoin’s volatility and regulatory concerns still loom large.

What’s Next?

The Amazon board will review the proposal ahead of its annual shareholders meeting in April 2025. Will they take the leap into crypto waters, or will they play it safe and stick to traditional treasury strategies? Either way, this debate signals a growing shift in how corporations view Bitcoin—not just as an investment, but as a potential cornerstone of financial strategy.

📉Bearish📉

WallStreetBets Hacked: $2.2 Million Gone in a Meme Coin Heist

WallStreetBets (WSB), the infamous Reddit community behind the GameStop saga, fell victim to a massive hack over the weekend. Hackers took over their official X (formerly Twitter) account and used it to push fake meme coin offerings. The result? Over $2.2 million worth of Solana-based tokens stolen from unsuspecting followers.

So, how did it happen? Investigators revealed that the hackers exploited a vulnerability in X's mobile platform, tricking the WSB community into sending funds through phishing links. It’s a textbook example of social engineering—when hackers manipulate people into handing over their money or data.

Why It Matters

This incident isn’t just about one community’s misfortune—it’s a wake-up call for everyone. Crypto scams often thrive on trust and urgency. A flashy tweet or a "too good to be true" offer can quickly fool even experienced users. WSB has since regained control of their account and warned followers to ignore suspicious links, but the damage is done.

Here’s the takeaway: always verify, never rush. Whether it’s a crypto offer or a financial opportunity, double-check the source before clicking anything or transferring funds. And remember, if it sounds too good to be true, it probably is.

In a digital world where scams are evolving as fast as technology, staying informed and cautious is the best way to protect yourself. Keep your funds—and your trust—safe.

📚Education📚

Price Action Patterns: Why Dips Can Be Bullish

Let’s talk about the dreaded dip. It’s the moment that makes even seasoned traders break into a cold sweat. But here’s the truth: dips are not just normal—they’re healthy. In fact, understanding price action patterns can help you see dips as part of the bigger picture, especially in a bullish market.

What Is Price Action Telling Us?

Price action is essentially the story of buyers and sellers. In a bullish market, higher highs and higher lows are key. Even when the price pulls back, the overall trend often remains intact. These dips, or “retracements,” are like the market catching its breath before continuing its upward climb.

For example:

• After a strong rally, the market needs time to consolidate and shake out over-leveraged positions.

• Dips often allow long-term buyers to enter at better prices, creating stronger support levels.

Why Dips Are Healthy

1. Flush Out Weak Hands
   When the market dips, short-term speculators tend to panic sell, while seasoned investors see it as a buying opportunity. This transfer of assets to stronger hands can stabilize the market for future growth.

2. Retesting Key Levels
   Dips often retest important support zones, confirming the market’s strength. If these levels hold, it reinforces the bullish narrative.

3. Cool Off Overheating
   Parabolic moves (those sharp, continuous rallies) are unsustainable. A dip allows momentum indicators like RSI (Relative Strength Index) to reset, preventing overbought conditions and paving the way for a healthier rally.

The Big Picture: Bullish Bias Remains

Here’s why a dip doesn’t mean doom:

• Higher Highs and Lows: As long as the price stays above key support and continues forming higher lows, the bullish trend remains intact.

• Volume Tells the Story: On a dip, look for decreasing sell volume. This signals that sellers are losing strength, and buyers may soon take over.

• Market Structure: In a bullish market, dips are temporary pauses, not trend reversals. Stay focused on the long-term trajectory.

How to Trade or Invest During Dips

1. Stick to Your Plan: If you’re trading, consider scaling into positions at support levels. If you’re investing, use dips to accumulate more of your favorite assets.

2. Use Smaller Positions: If you’re unsure, reduce your size and wait for confirmation before committing heavily.

3. Zoom Out: Don’t let short-term noise distract you. Check the daily or weekly charts to get a clearer picture of the trend.

Final Thoughts

Dips aren’t the enemy—they’re part of the process. Instead of fearing them, learn to read them. A pullback can be a sign of strength, resetting the market and preparing for the next leg up. Stay patient, stick to your strategy, and remember: the path to higher prices is rarely a straight line.

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