📟 Disclaimer
I am not a financial advisor, and nothing I say in this substack is financial advice.
This is all educational content you can use as a starting off point for your own research initiatives. I’m just another random individual who started a substack ‘cause I think I have something to share with you all’. 🤷
That said, if you’d like to know a bit about me and are wondering why you should listen to me, read this intro post I wrote 🙌
👛 Wallet Review
This wallet review is a recurring post. The aim is to post an official update every Monday and see how far I can grow this little stash by week 52.
As of January 30th, 09:00 UTC this tiny stash of mine sits at a modest value of $1128 USD, dubbed week 18 closing balance & week 19 opening balance.
Week Zero(0) Opening Balance Was: $450
I won't be going through all of my investments in detail in order to keep this review succinct, engaging, and free of repetition. I will only be covering my activity over the last week!
I advise you to review the posts from the previous week and evaluate how this "experiment" is going.
Recap (Anticipating a Market Pull-Back)
Last week we discussed Crypto market trends and how after prolonged down peiords when we experience a rally, it can either a trend reversal or a relief rally.
I explained, A trend reversal occurs when the market direction changes from rising to falling or vice versa, indicating a significant market change, and A relief rally occurs when the market increases after a prolonged period of decline, which may indicate a rebound, but does not imply a change in market direction.
We spoke about warning signs and how Traders should understand the distinction and use technical analysis to make better trading decisions. I reported how my radiant capital investment had pretty much doubled and used that as an example to illustrate selling into a relief rally to secure profits and reinvesting in opportunities less affected by volatility.
For this week, i’d like to reiterate, It's important to have a strategy, to be patient and not make hasty decisions during market fluctuations.
Pull-backs after relief rallies occur when the market retraces some of the gains made during the relief rally.
This is a common phenomenon in the market cycle and can be due to various reasons such as profit-taking by traders, reassessment of market conditions, or new negative news.
Pull-backs after relief rallies are significant because they can indicate that the market is not yet ready for a sustained upward trend and that the underlying bearish sentiment remains intact.
They also provide opportunities for investors to enter the market at lower prices and for traders to take profits at higher levels.
Overall, pull-backs after relief rallies are a normal part of the market cycle and are important to consider in an investment strategy.
So why am I saying this right now?
As an investor, it's important to be patient and not fall prey to the Fear of Missing Out (FOMO) that can arise during market rallies.
Pull-backs, or short-term declines in asset prices, can actually present opportunities for those who are willing to wait and see how the market reacts.
In the case of Bitcoin and Ethereum, previous resistance levels have been in the range of $17,500 to $19,500 and $1,000 to $1,200, respectively.
During a pull-back, it's essential to observe whether the price holds at these levels or if it shows weakness and declines further. If the latter occurs, prices like $12,000 per Bitcoin and $800 per Ethereum may become more likely.
As for me, I have committed to a 52-week investment experiment utilizing DeFi, and I remain fully invested in the market. I would consider buying Bitcoin at $12,000 and Ethereum at $800 if market conditions warrant it.
However, this should not be taken as investment advice and individual investors should conduct their own research and make informed decisions.
🤔What are my plans for the upcoming volatility?
This week, my portfolio had a light workload with just some maintenance tasks.
I claimed SNX rewards, deposited my LP on Synapse for synapse rewards, and claimed Thales & Optimism Rewards.
But one exciting thing I did was start lending my sUSD on Sonne Finance, earning a 4.53% base reward plus an additional 0.73% in SONNE tokens.
I'm eagerly awaiting the outcome of the February 1st FOMC meeting. The market is uncertain, with most expecting a 0.25Bps to 0.50Bps hike and potentially some dovish language or a pause. But I suspect Chairman Jerome Powell will "punt" and say ongoing increases might be necessary.
Here's the thing, the US is struggling with debt and a 5% interest rate will only add to their burden. In my opinion, they will default by June/July if they don’t raise the debt ceiling and consider a rate cut plan end of year (2023).
Meaning, they'll increase the debt ceiling and start printing money again, everything that’s happening right now is just political theatre IMHO. After all, it's too late for a conscience now.
Politicians always seem to time the market top perfectly, even FOMC members who sold their holdings before raising interest rates. Talk about hypocrisy! They say Bitcoin is a Ponzi, but the real Ponzi might just be the US government.
Disclaimer: This above bold statements are for entertainment purposes only and should not be taken as financial advice or facts.
🪤 Outro
Of course, it goes without saying but bears repeating that nothing I say or share here is financial advice. I’m just another random individual starting a substack ‘cause I think I have something to share with you all’. 🤷
Also, like many individuals who are doing this for a living I also am a humble penniless fool. So, if you are a kind, bountiful, and gifted individual who has benefited from this S#!t Postery and wish to buy this S#!t Poster of yours a coffee, Some drip money would definitely be appreciated and will help to keep my fingers going on this mechanical keyboard of mine.
All Eyes on FOMC