September 23, 2022

Crypto Crunch Continues, Stocktwits Talks Cardano With IOG

Has it been one crazy week or what? Never mind the Federal Reserve’s rate hike – have you looked at the FX (Foreign Currency) markets? It’s crazy. The British Pound is trading where it was against the USD back in 1985 – some of you weren’t even born yet!

In today’s Litepaper, we’ll look at a critical price level that Bitcoin bulls and bears should keep an eye on. Most importantly, though, the Litepaper got to sit down with Input Output Group’s (IOG) CMO to talk about Cardano – make sure to check it out!

But before we do all of that and move into the weekend, here’s what the market looked like at the end of the trading day:

Cardano (ADA)	$0.45	-0.87%
Binance Coin (BNB)	$271.30	-1.42%
Bitcoin (BTC)	$18,803	-3.11%
Dogecoin (DOGE)	$0.064	6.38%
Ethereum (ETH)	$1,287	-2.96%
Polkadot (DOT)	$6.30	-2.17%
Solana (SOL)	$31.85	-1.85%
XRP (XRP)	$0.47	-3.02%
Altcoin Market Cap	$526 Billion	-1.48%
Total Market Cap	$885 Billion	-2.13%

Crypto

Technically Speaking – September 23, 2022

The image below is Bitcoin’s ($BTC) weekly chart. The horizontal red and green bars on the left side of the chart are part of a tool in technical analysis known as the Volume Profile.

Volume Profile is a form of Volume-At-Price analysis – it measures how much of something was traded at a particular price or price range. The thin red line is called the Volume Point Of Control, or VPOC – which represents the price level where the most buying and selling has occurred.

You’ll note that some bars appear to stick out more than others (high volume nodes), and likewise, there are noticeable zones where the bars are very small (low volume nodes). What makes the high and low volume nodes important is how analysts, investors, and traders interpret price action when it moves away from a high volume node and into a low volume node.

When price moves into a low volume node, the low volume node acts like a vacuum and sucks price to the next high volume node. And that is the kind of scenario Bitcoin bulls and bears should watch out for.

The Volume Profile on the image above begins at the 2019 Covid crash low. Bitcoin is currently trading just a hair above the bottom of the current high volume node, which is at $17,800. If there is a daily or weekly close below $17,800, then Bitcoin could experience a fast push lower to the top of the next high-volume node at $11,800.

Crypto

Stocktwits Talks With Cardano’s Developer, Input Output Group

The Litepaper got a chance to visit with Input Output Group’s (IOG) Chief Marketing Officer, Jerry Fragiskatos. Who is IOG? Well, they’re the team that develops Cardano ($ADA.X) until Cardano is ready to walk on its own – which isn’t very far away!

With Ethereum’s Merge ($ETH.X) already behind us and Cardano’s Vasil hard fork complete just yesterday, there’s a lot of questions I had.

Bullets

Bullets From The Day:

🧠 One of the oldest and first cryptocurrency exchanges, Kraken, has some big changes happening in its corporate structure. Kraken’s founder, Jessie Powell, is stepping down from his role as CEO. He notified his board of directors last year of his intention. He will now be the Chairman of the Board. Bloomberg has the full story

👔 The law firm Willkie Farr & Gallagher adds another former regulator to its team. Kari Larsen is the latest addition. In the past, she worked for CFTC’s enforcement division. She will co-lead with Aliceson Littman, the former chief of the SEC’s crypto assets and cyber unit. The firm also includes former CFTC chairman and BlockFi director, Chris Giancarlo – also known as ‘crypto dad’. Read more from Blockworks

👔 A claim against Coinbase ($COIN) in the Wall Street Journal that Coinbase engaged in proprietary trading was met with a response. Coinbase says that the $100 million transaction in question was “client driven” through its Coinbase Risk Solutions unit that focuses on assisting institutiona investors with the crypto market. Cryptonews has more