XRP sell-off warning, Cardano, VGX, $50K BTC? | The Market Report w/ Scott Melker

Foreign.

Welcome to the premiere of Market Report with Cointelegraph. Super excited to be here today. I am your host Benton and we're joined by our resident experts, Jordan Finisith. Jordan has a background in psychology and human behavior and he uses this to spot emerging trends in crypto. And we're also joined with Marcel pegman. He has 17 years of experience in the stock markets trading derivatives, options and futures. On today's show, we're going to go into distinct segments which you can see below. We'll be starting with a rundown of the most important news of the week. Then we'll hear from expert takes on the markets both from Marcel and Jordan. Next we'll give you the scoop on Altcoins with data from Markets Pro. And finally we have a special guest, Scott Melker who and we'll open the floor to questions at the end for the community. So what is up guys? How are we doing today?

I'm doing pretty good. Just looking forward to getting this show started, man.

Yeah, more so. What is that? We got bitcoin. Bitcoin's almost back up to 46k. It's a great day to be alive in the crypto world.

Yeah.

I don't know why people got so upset with, I don't know, 5% drop on Bitcoin down to 43, 44. Ethereum down to 2.8, 2.9 thousand. If you check the prices and compare them with a month ago, two months ago, we came out of a hole which people called a bear market and even myself. So I don't see, I don't understand why people are so negative about a 5% drop. I'm still optimist. I think we're on a good track.

Yeah. And historically speaking, you don't want to keep running after it's gone up a little bit. Like it's always got to take a little break or when it keeps running, it's like, oh, there's a big fall coming. So yeah, I think this is a good, good development.

We've seen the corrections, but we also have some really nitty gritty stuff we're going to get into about the markets today. So Danilo, let's run it back. So one of the first articles we're going to dive in today from Cointelegraph is the XRP article. It's talking about how the charts were triggered. A sell off warning after price explodes by 54 in the PAT in one week. So the highly controversial XRP, we all know it's being wrapped up in these Lawsuits with the sec. However we've seen this price action. What is going on with XRP right now? Marcel?

I think that XRP follow news and it's either the SEC dispute or some partnerships as it's recently announced SBI bank in Japan, GME in South Korea for using XRP on remittance. So sending money abroad like what they had with MoneyGram last couple of years ago but it was dismissed, it was done. So I think markets react a lot on this kind of news and after a while it adjusts. So investors shouldn't be worried about the SEC dispute because in the end the XRP token doesn't really depend on repo company so. But when these price bumps happen, especially on xrp, it worries me because I don't see fundamentals for a continued growth on the price. So I think we could have a negative reaction after the positive spike when positive news come out.

Well I know to me it's not really a bull run or like a bull market unless something XRP does something. It's every year that I've, every year I've been in cryptocurrencies XRP has to do something before the whole market gets going just like other certain things like Craig Wright and other people pop out and have their little go every round. So I don't know, I see XRP and if you look at like what happened with Bitmex recently, eventually the XRP thing is going to get settled in my opinion. Of course that's just my opinion. I don't, I'm not any kind of like high expert on that but I think that it's just another sign it's going to go along with Bitcoin and the whole market's going to run as the market goes in the few next few months.

Well we, we've seen the price of.

Xrp but my favorite pick, I don't agree. My favorite pick, it's Dodge coin. Whenever Dodge coins start, start pumping, you know that market is going to rally, not xrp. Sorry for that. Go ahead.

Well, we said we've seen the price Surge to almost 3 month all time highs but some analysts are calling for this pullback on xrp. So when assets rise like this, this, these meteoric rises of 54% like what, what causes these pullbacks? Is this a lot of profit taking? Why are analysts calling for this pullback in particular?

I think it's a lot of profit taking and there's just every time there's a big run up there's a lot like the, the crypto Market's historically volatile. It's kind of intelligent just to say, oh, there's going to be a good price drop. And I think more, more times than not you're going to be correct on that. Especially with something like XRP that's such a high flyer. And when it does get a big run, I think people that had big positions and see the other, the rest of the market kind of sell off so they can maybe rotate into some other altcoins.

I kind of agree with Jordan, but we got to remember that XRP releases like a billion coins every month out of escrow. So they're released either for the company or founders to sell on the market. Of course they don't sell the whole beaten every month, but it puts pressure. So it's kind of a concentrated coin. So whenever there's a huge spike, those guys will be willing to accelerate their sell and naturally the coin is going to drop, the price is going to drop.

Yeah. Well, Danil, I want to pull up the chart here for XRP to kind of give people some more insights here. So something that we're going to look at is on the top of this chart you'll see that like purple area that is the rsi, the relative strength index. And this is used to kind of to portray how overbought or underbought an asset is. And so when speaking about RSI when It's typically above 70, this, this indicates that it's being overbought. A lot of people are maybe getting into it and it's being overbought. Now when it's below 30, it's being underbought. So I do want to kind of talk to you guys about like when you're looking at these types of charts, is RSI something that, that you're taking to account of your trades? Jordan?

Yeah, it's more about me when I get on the end to look to enter different positions. Again, I'm more of a long term Hodler, so I'm not trading frequently. But if I am looking for a good entry, I will look at things like the RSI because obviously now it really looks like it's overbought and it's way up there. So I would probably pick a different coin at this point looking at that chart right now to invest my money in.

Well, as far as for rsi, I don't believe it's so worthy for cryptocurrencies because in a bull run can last for two or three months, especially when there's an out season when every altcoin is going up 20 to 30% per week. There's no reason to be short in the market or to exiting your positions. If you're in profit, you got to take higher risk. Okay, you can sell 25% of the position, but you keep most of it. And after it clearly shows the top, then you, then you can sell another half of that. So 75%. But you're going to be courageous when the bets that you made are doing good are becoming profitable. Otherwise you'll be with meager returns.

And so are we at the top here for xrp? Just kind of looking at this chart, I mean, we see the Fibonacci retracement levels, we see the rsi. Does this really look like a top for. For xrp?

I was just thinking about more like the use case of xrp. Like they need to really get on the ball because the whole economy expands and you got stable coins really exploding in their supply and how spread out they are. Like the use case for XRP is starting to kind of decline. And other, like I think I saw the other day, a project called XTC was signed on with Swift and a bunch of banks to kind of handle banking transfers in there. So like, yeah, with the, the rip, the SEC holding back XRP and the whole market moving ahead, they need to get on the ball and do something special because the whole, the whole area with DEFY and NFTs, XRP is just like a mean of transfer, transferring money now. And that's like the first, first level of what blockchain technology can do. So I don't know. They need to expand the whole platform in my position. I agree.

Yeah. I mean, and we've seen competition with Stellar as well, trying to do something similar and really kind of competing in that space too. But I want to shift things over to the big boy, bitcoin. We got a lot of stuff to be talking about this week with bitcoin. We saw it get up to 47k earlier this week. Then we slid back. What is going on right now with bitcoin. Why are we seeing this now? We're Almost up to 45. 7 today. Marcel, tell us what some of your insights are in regards to what happened to bitcoin.

What?

Earlier this week and now where we are now.

Okay, Bethan, so I think that the slight correction that we've seen, it's a little bit investors being afraid of, I don't know, regulation, Federal Reserve tampering, which means reducing the market. Asset market buys monthly that the Federal Reserves do. So whenever there's uncertainties, investors will tend to profit take especially if there's a drop on the S and P as we've seen over the past couple of days. So investors will pick their winners, which bitcoin is clearly one of them. Ethereum as well. And they're going to profit take a little bit. So natural. But it reaches some level. Maybe 44, 42, 40,000. I don't know where buyers start. Okay, maybe down 10 from the local top. So I'm gonna start Avi here. So things balance out.

It's interesting how quick like mood shifts in the whole market. Like it's a couple weeks ago everybody was worried about the price dropping down to like $20,000. And now we're like, oh, we're slipping below 46. And it's, it's the end of the world. It's like cryptocurrencies are volatile. A, there's a whole lot of things going on in the larger world like the global economic system ain't all that, that hot right now. And there's just like today you have Wells Fargo announcing that they're going to allow institutional like big money clients to start investing in bitcoin. Like to me that there's a, there's a lot of positive news under this fear in the market. I don't know, I think we just like to be afraid.

It's 50k in sight. I'm a believer that it is. And one of the models that I like to look at personally is the stock to flow chart. This was a chart developed by Plan B. So Danil, let's pull this up real quick for those who aren't familiar with the stock to flow model. So let's have a look at this and kind of see where things are at currently with bitcoin and this chart in particular. So we see the trend line. This is the famous stock to flow model presented by Plan B. What his insights essentially say is you can kind of see the price levels with the different colors and then the actual trend line of where he predicts that the bitcoin price will be. We could see that it's almost by the end of this year, should be at 100k. Is this stock to flow model something that you all like to look at? Is this something you guys give any weight to at all when we're looking at charts or anything like that?

I don't, I don't believe that any asset should be valid by itself by its scarcity. Bitcoin doesn't exist in the space. It competes with other assets. With stock markets, with housing, with every major bond market or gold and whatever. So whenever the Federal Reserves say that, well, we're going to start reducing the monthly asset purchases, investors will naturally look for ways to, I don't know, seek protection or sell the winners. So I don't think that we should be relying on, on a model that exclusively uses scarcity to price Bitcoin. So I don't use it.

Yeah, I wouldn't usually agree with using just one specific model but like in these cases and like that's with my background psychology, it's not so much that Bitcoin is going to follow this chart, it's that everybody, a lot, not everybody, a large percentage of people in the ecosystem think it will and that like we're the people that are driving the market, the people in the market are driving the market. So whether or not if nobody was around, we wouldn't really sell bitcoin. But will it follow this? I think it has a lot to do with the fact that everybody in the market thinks it will. We'll drive certain tokens and certain coin prices up higher just because people FOMO and stuff. So I think that even though like in isolation, I wouldn't just trust one metric, the fact that it's tied into like the sentiment and overall feeling of people in the market, it gives it a little bit more weight and it also makes it easy to manipulate the price at that point too.

Well, I do want to touch on something that Marcel brought up earlier, which was some Fed policy they've recently announced, like an emerging consensus to unwind 120 billion monthly purchases of treasury and mortgage backed securities. What does this mean? And then as a second note, like what does this mean for Bitcoin Marcel?

That's just to show, to pretend that they're willing to reduce the asset price changes because if they drastically reduces, if they cut everything down from 120 billion to zero, they know that markets will collapse because investors will lose their confidence while the Fed is no longer supporting us. I don't know how much of the recent S P growth or as general housing prices was caused by the Federal Reserve's asset purchases. But even if they reduce it by, I don't know, 30 to 50%, you got to remember that they recently increased food stamps by 25%. So there's a lot of assistations they're handing out money, $2,000 monthly for unemployed and stuff like this. So the more money that's flowing in the market, the easier it is for bitcoin to reach 50,000 or 100,000. So we largely depend on the Federal Reserve. Let's not fool ourselves. Bitcoin doesn't exist in, in a vacuum. So whatever their decisions is going to impact hugely on us.

Yeah, I think it'll, it'll have enough impact too. They're definitely putting a lot of money into the system and like he just Marcel said, they're shifting it around so they decrease, if they decrease the mortgage backed security purchases, they're increasing things like welfare. What really matters is it going to affect, inflate the whole concept of inflation. Like even housing here in the US is getting really high because if they are buying these mortgage backed securities off the market it allows the hot, the value of houses to stay up. If they start removing that are the values of how's it going to go down? But we're gonna start like money is going to start chasing assets. And like I've said it before in one of our previous practice shows, as things like real estate and precious metals and stuff get less and less and more scarce out there, people are going to funnel into the different cryptocurrencies just because it's going to be the easiest way for them to try and transfer their money into something that's not going to lose all its value.

Yeah, interesting, interesting take because we saw the same thing happen in 2008 with, with, with the housing crisis. So like hopefully this isn't a repeat of the same mistake. Now when it comes to bitcoin people are talking about this double bubble. I don't know if you guys have heard of this, but is there a second peak in sight by the end of this year? What would it take for us to break through this 50k kind of resistance level?

Marcel, interesting question in my mind. For us to break the 50 or 60 thousand dollars this year would require the ETF approval in the United States. And recently the SEC president Gary Ganslas said that he would be more keen to accept ETFs that held indirect exposure to Bitcoin like using the CME or like using the grayscale gbtc. So I think it's going to be approved but I'm waiting that for the first half of 20, 2022. So I don't see a second top this year.

What about you Jordan?

I think that there will, I don't know what it will be, what will cause it. I'm just like everybody's saying it so it's gonna happen. I don't know. I, that would be a really good win. An ETF for a way for large amounts of the traditional financial system to really start getting invested in bitcoin is probably what's going to take to really push us higher. But I don't know, we'll see what's going on with tether. I know they just printed another billion tether not too long ago. I don't know. The whole thing's really in flux. It's, it's really like I've written several articles, we're kind of in an indecision phase right now and it could go either way. I think the market is looking for a really big development to push us higher. So we'll see what happens. It could be something that happens with the greater economy. Who knows?

I'm bullish on Bitcoin. 100k or bust by the end of 2020. Let's go. We do have, now that we've talked about the biggest asset in crypto, Bitcoin. We're also going to be talking about some altcoins today and I think Marcel has some very, very interesting insights for us to get into. So let's go ahead and roll into Marcel Pekman's expert segment.

So we've covered a little bit of bitcoin and today I'm going to talk about altcoins and how do I personally do the analysis. And we're going to compare with what Benton and Jordan do as well. But for me, analyzing altcoins is a much harder job because there's less data. For example, we don't have options market or maybe futures contracts have a low market share or low market size. So it's not that trustable such as bitcoin on Ethereum. But I'll show you how. I run the analysis myself. I know that every trader has its own time frame, its own risk aversion. So for me, I don't trade four hour candles or daily candles or weekly candles. I'm more interested in monthly or quarterly performances. So I'm not really a short term trader. So the number one thing that I do is start with the bitcoin chart. It's simple as that because it holds like I don't know, 60 to 70% of the market share among the top coins. And you gotta understand if whether we're on a bull trend, we're neutral when a bear trend. So make, keep in mind that you gotta use the same time frame all the time. You cannot be changing from one hour to 15 minutes to four hours to a week to a month. When you were analyzing altcoin performance for a month, you Got to analyze bitcoin performance or total cryptocurrency market performance for a month. So you got to see first, has bitcoin reached some resistance? Is there a strong support then if bitcoin is facing a local top like we just did with 47, 48,000, I, I recommend you to move to the altcoin market cap. So if altcoins are still running after BTC held the top, that's for me a very bullish indicator for outcomes. Do you agree with me, Jordan?

Yeah, I agree. Like I like to watch. Bitcoin is definitely still the market leader as far as the whole market goes and after like bitcoin moves and a lot of times the rest of the market will move after that. So yeah, I like to look at it as leading indicator even though I'm, I prefer more, I'm more bullish all coins and I'm still waiting for the day where the whole market separates and the stable coin influence comes in to make it so that not every coin is dependent so much on the price of bitcoin. But that's still a few years off in my opinion.

So wait, Marcel, I want to, I want to pull back. You mentioned you like to look at kind of longer term time frames. When you're looking at trades, whether that's monthly, quarterly, it doesn't it give you a little bit more insight as to what is happening in particular moments when you are kind of zooming in whether it's a 30 minute chart, an hour chart, a four hour chart. Why, why is that not beneficial to, to use some of those smaller time frames?

Because you can get easy fooled by noise by a news that came out or a rumor that that came out at I don't know, some exchanges not letting clients to withdraw money and it caused the market to drop. But after four or five days everything goes back to normal. So when you focus on weekly and monthly charts you kind of balance out those quickly news impacts. So it's a clear analysis for me. I don't know what Jordan agrees or not.

Are there any times when you use the lower time frames.

Only if there's okay, unemployment came out, it's 6%. People were expecting 4%. So yeah, I'm going to check what's going to happen over the next 30 minutes, over the next one hour to see how the market reacts. Well, that was a bearish data and market still rallied. So yeah, that's the only case that I'm going to use a 15, 30 minute chart.

Okay.

I find that.

Yeah, go ahead.

Yeah, I, I'm a defi token trader, so, like, I'm looking at sometimes minute, 5 minutes, 15 minute charts when I'm looking at defi tokens, because those small market caps move very, very quick and I want to know who's selling, who's buying and how much in that instance. So, like, I'm going to take the other side of this is like, I love zooming in, but I think it's also important to, to understand you got to have perspective when it comes to a lot of the larger, larger market caps and being able to zoom out and look at a monthly and quarterly chart. But yeah, so I guess, Marcel, are we in alt season right now? What are things kind of looking like.

I think right now as bitcoin failed to break the 48,000 points, $48,000 for two times in less than a week. And altcoins are still rallying, I think, yeah, we're at the beginning of an altcoin season, but if bitcoin drops below 42 or $41,000, it's going to get ugly for them. But right now, yeah, there's a positive mood for altcoins. So back to my routine. After I've decided that, yeah, we're on a good mood, a good trend for altcoins, I'm gonna open a chart for the specific altcoin that I want to analyze. But first of all, I'm gonna log in cointelegraph website to check for news login at CT Pro to check for some vortex signals, which we're gonna talk later. So it runs Twitter Sentiments, for example, it searches for listings on Coinbase or sponsors, stuff like that. So those are major events that definitely impact the market. And I want to know, even if I'm looking at a long, larger, larger time frame. So. But okay, let's say the altcoin you were analyzing pumped like 30% a week ago because of a listing or whatever. So what you got, what you got to think is, was that something that investors were expecting? Was that something that changed the game? Oh, it's the first large exchange that's listing or no, it was already listed at Binance, OkX, Huobi and all of the major exchanges. So if that's the case, if, if it's just another exchange that's getting listed and it pumped 30%. So I expect market to react negatively, negatively after that.

But okay, you recommend buying coins that have pumped like 50 already?

Only if you have a strong bookcase.

For that, but only if everybody's talking about himself.

What makes A strong bull case though, in your opinion, Marcel?

Well, if Sam guy, the FTX guy, says on Twitter that he's bullish on some outcome on, on the first date, pumps 50%. Okay, buy $2,000, buy something, get exposure. Because the guy from FTX has a lot of influence and he's had a lot of money and he can move markets by himself. So jump in, even if it's.

I think we should also note non financial advice, just because a certain influencer says something about a token does not mean you should invest. But you know, you can heed some of those indicators if you will, from, from different influencers, like SBF from ftx.

Go ahead.

Yeah, so Danilo, can you show my article on Cardano, please? So here you can see that I analyzed Cardano about a week ago. It showed that the price was increasing. You can go scroll down a little bit for the price chart. Danilo, please. So it shows that Cardano was already climbing. But when we move to derive this data, for example, the funding rate from the perpetual contracts, it did not show that professional investors were buying leverage positions. So that shows me a bit of lack of confidence. So if the funding rate is close to zero or if it's negative, I'll be thinking twice about buying an altcoin after a 50 run. So I, I use a lot of the derivatives indicator, the funding rate for me, it's the primary one that everybody should. Oh, I'm gonna show you guys here. So let's get to the Cardano price chart. You can see that it was already climbing when I said, well, okay, it's. But there are some things that are worrying me. So if we scroll down a bit, we're going to see that the funding rate, which is the indicator that I was saying used to be positive ahead of May 19, but over the past couple of months it's been close to zero. So unless we see a 0100015 positive funding rate every eight hours, I wouldn't be aggressively buying after a 50% rally. So, so that's what I.

So wait, Marcel, what exactly is the funding rate? And then why is that so important in relation to some of the bigger assets like Bitcoin and Ethereum?

Okay, so the funding rate tells me when Perpetual futures, the derivatives that you trade at Binance Futures, Huobi, Bitmax, buyers and sellers, the longs and shorts are balanced at all times. Okay? You cannot have more buyers than sellers. They're matched all times, but their leverage vary. If the buyers are using more leverage, the funding rate goes positive. If the sellers, the shorts are using more leverage, the funding rate goes negative. So I want to get it an altcoin. When it's starting to get hot, when the funding rate is starting to go positive, means buyers are starting to use leverage and trust that the rally will continue.

And that's from a negative funding rate to a positive is typically what that's saying.

Yeah. Either from a zero to positive or from a negative. Negative to positive. Yeah. So you got to be in the beginning of that cycle.

Very interesting insights. Well, that's good to note because I have never really looked into the funding rate of some of those. So maybe that's something I'll start adding into my toolkit. We talked about some altcoins and I know Jordan has some very, very interesting facts to present today about particulars around alt season. So let's go ahead and roll right into Jordan's expert segment.

Yeah, so like this is one of those few instances where me and Marcel are kind of on the same page or talking about the same thing. Come on. Today I'm like, oh, we're both talking about all season. But so yeah, if you could pull up my article, Danillo, the. Ever since about July 20, the market kind of bottomed. That's when bitcoin was down below 30, 30K, I believe. And bitcoin has obviously turned around, gone up to 46k. But the altcoins have really rallied too. Some of the altcoins, especially several of the D5 tokens and NFT projects, have seen their prices rally more than 400. Like Axie Infinity. That's one we've talked about several times in the past. I know me and Marcel have a little bit, little relationship around that one. But like, is that, does that mean that like in the past, a lot of times we'll see bitcoin will do a run up, the price will stall and then start to pull back. And what happens is that's when altcoin started starts to kick off because people that have made gains in bitcoin kind of rotate over in the altcoins and they start to run. And we're trying to figure out if that's going on right now. I know there's a tweet here that's not really showing up on my screen, but if you could actually here, I can do this one. If you look at this chart it's provided, it just kind of looks at an altcoin season index. And I'm not, I only found this the other day. I'm not saying Like I'm married to or anything, but it's an interesting look at it.

What the hell is that, dude?

Yeah, I know it's the only thing I found that kind of showed all coin season, but it's saying like, if bitcoin's below this price, it's bitcoin season and above is this all point season? I don't know. I kind of think that it's the opposite, but I don't know what I want to get your guys's opinion on whether or not you think we're in altcoin season or if bitcoin's got to do another run or if bitcoin goes down. Is, is that going to kill the altcoins? I don't know. What do you guys think?

Yeah, Marcel, why don't you, why don't you take this question here?

Well, as I said previously, when, whenever bitcoin fails to break an important level like 47 or 48, I agree, Jordan, people will rotate to altcoins and seek against otherwise in other coins. But yeah, if bitcoin fails to hold the 42,000 support, which has been holding for, I don't know, two or three weeks, it's gonna look ugly for altcoins because there's less liquidity. So when you're buying $10 million worth of altcoins, there are multiple sellers, especially if you are paying up 20, 30% up. But whenever you want out of the altcoins sending $20 million, $10 million at market, it's going to cause a 40% crash, not a 5%, not a 10% crash. So it's the door, the entry door. It's much larger than the exit door.

Well, that depends on who's selling and how liquid the market is. But I think we're moving into a whole new phase because a lot of these tokens have staking things built in. So they're kind of, have, they have measures in place to try and prevent large scale sales. Now I know if, if big whales decide to just start dumping tokens, that's always, that's. There's nothing many people can do about that. But I don't know. I think we're really starting to approach the, the point in time when the whole market can kind of start to separate from bitcoin. Like stable coins have become a lot more. I think we might have to have a little shakeout with tether first. But I don't know. What do you guys. Do you think it's possible that anytime soon altcoins could, could hold their own ground without bitcoin staying up.

So first of all, Jordan, I have an important tool for you to use. It's the all season indicator on markets pro. So I don't know if you've checked that out, but you definitely need to look that. It pretty much lays it out pretty simply for you whether we're in bitcoin season or altcoin season. So that's something that we can get into later. But when it comes to when I'm looking at a lot of things, I also have a question for, for you all is does Ethereum lead the way? I've heard this argument a couple times. Does Ethereum lead the market or does bitcoin lead the market, which tends to roll that over into an alt season? I'm curious to hear your take on this, Jordan.

I'm just going to jump back to what Marcel said earlier in Dogecoin leads the market. Like, I don't know, there's a lot going on right now. Like everybody was really hyped for London Hard Fork. London Hard Fork came and what happens the gas prices increase. Now you see Tara and Solana shooting up these other layer one program platforms. Like, yeah, they're both there. I know they got the biggest valuations currently, but I don't know, I'm a lot more interested in the rest of the coins. So like I'm just going to stick with Doge. What do you think, Marcel?

I don't think there's a specific altcoin indicator because people sometimes prefer some sectors. Okay. Now what's hot is the smart contract segment. Now what's hot is the defi segment. Now what's hot is the game segment. So you got to be attentive to what are the those sectors that are moving up and if Multiple coins, like five or six of them are moving up 30% or more in a week, possibly it's a good indicator of an out season.

Yeah, I typically try to take the approach of like, if I don't know what the utility of the token is, I'm probably not going to be looking at that. Even though there are tokens where you can look at and be like, hey, the TA says that I should probably jump into this, but I'm in the school of thought. If I'm not willing to invest in it, almost like a company in some ways, then why am I going to look at this? But it comes down to utility for me when I'm looking at a lot of these altcoins.

Yeah, I agree. Like if you're gonna do something long term. I'm like, I'm a long term holder. Find projects that you believe in long term and get those. And Marcel mentioned it a long time ago, like, if everybody's talking about a coin, it might be a good idea to pick. This is investment advice. But like again, there's a, there's a little bit of power behind the people. If everybody's talking, if Twitter's just blowing up about a coin, they pick up a little bit. If it like goes up 100, you know, yeah, take profits. That's not investment advice. But in general, yeah, just, yeah, excellent.

Excellent insights for today, for, for Jordan segment. But speaking of Markets Pro, we're going to be diving into some of the coins that you should be watching and telling you what, what Markets Pro is all about. So Danilo, let's get right into it.

Foreign.

So today we are going to give you the inside scoop on some of the best altcoins to watch this week according to our flagship product, Markets Pro. And for those who don't know what Markets Pro is, it's a data intelligence platform designed to enhance investors decision making with industry grade analytics. So the first coin that we're going to pull up here is going to be filecoin. So one of the things with filecoin this week is we're going to pull up this chart, Danilo, is we're going to get into one of the aspects that makes Markets Pro so great. It's the news quakes. So for those who don't know what the news quakes are, we'll look here at the, the bottom circle where you see those two little pinpoints, these are called newsquakes. So we have the double newsquake here which are events that happened and our platform is able to signal those to our platform users. So Newsquake is an AI powered system that automatically sifts through thousands of websites and social feeds to detect potentially market moving developments moments after they get publicized by primary sources. So it's scraping thousands, if not hundreds of thousands of news sources on the Internet. And Newsquakes is actually the same service that the writers at Cointelegraph use to track breaking stories. Not only that, the Newsquake algorithm is trained to look for three types of announcements that have the greatest potential to move crypto prices, which are staking announcements, exchange listings and partnerships. So as we can see on this chart here, filecoin had these news quakes and that white line is showing you the price of filecoin. In the middle there you see the yellow line for the Vortex Score. This double barrel newsquake that we saw shortly thereafter, the. The price just absolutely skyrocketed. So the Markets Pro community get gets that alert. And then in collaboration with the two projects here, filecoin, this allowed decentralized applications to. To be built on NEAR to integrate filecoin based storage. So this was the announcement that happened. So it was a partnership announcement and this development resulted in considerable gains for both Near Protocol and filecoin. So that's one of like the, the coolest things about this, this platform. Jordan and Marcel is. Is that something that you guys are looking at or monitoring a lot of times when, when using Markets Pro?

Yeah, it's completely impossible to manually check for every Twitter announce, announce announcements, Reddit blog posts, newsletters. So if you have a tool available using AI and going to do a much better job than ourselves. So no doubt we use it when selecting what coins to cover as an analyst and writer and even when trading. Yeah, definitely, yeah.

If you're the type of person that only likes Bitcoin, Ethereum might not be any good for you just because those kind of do their own thing. But if you like Altcoins at all and have a kind of any feelers out there, Markets Pro definitely helps kind of get a. Get, get all the announcements in one place because it can be really hard to track. You start getting 20 or 30 different projects that you like. I know that's a lot but like Marcus Broken put it all in one place and as you see like a lot of the times the announcements come and even if the, the price already started moving before the announcement, I've noticed that it'll continue to run at least a day or two afterwards in most instances, just because it takes a while for that news to trickle out, which is. So it's good when you can get it all there right in one little location right when it happens. So you can kind of try and catch those rallies if that's the game you're playing.

Yeah, I mean look at those price swings. This is now Near Protocol that we're showing on the screen. Those two newsquakes happened, that partnership announcement, filecoin, Near Protocol, boom. An absolutely huge injection when it comes to price for Near Protocol here. So that newsquake was able to recognize that. And then if you were interested in Markets Pro, check out the description below. We have the link there for you to go. Give it a trial, give it a go. One of the biggest things, like I said, is those newsquakes, but we're going to, we're going to roll into the next coin that we want to highlight today from our Markets Pro platform. This is this time we're going to get into the Vortex Score, which is kind of an element that is frequently used on the platform. So the Vortex score is a proprietary algorithm that scrapes Internet for market activity and social sentiment indicators and matches this with historical patterns of price change. So the scores are put on a scale of 1 to 100 for each token. The higher the score, the more the model is confident that in the past, the current combination of market metrics and social activity around the coin preceded significant price increases by 12 to 72 hours. So the score is not a crystal ball and it shouldn't be used as a price prediction tool, but it can give you a good picture of what's happened in the past and pair that up with kind of the current environment for each token. So the next coin that we want to get into today is the Axie Infinity Chart. This is a token that we've talked about now for a couple of weeks. It's just been absolutely surging. So we're going to walk you through this chart. What does all this mumbo jumbo mean? We got circles, we got squares, we got red lines everywhere. So that green line is the Vortex score. When it is green, that is a higher score. When it's kind of that yellow, orange color, you're looking at a lower Vortex score. So we saw there that first circle on the top left, that means it's in the 80s, 80s is typically a good score for the Vortex score. And then what we saw with that white line is that price action. Shortly thereafter, it looks like we're looking at about a 24 hour difference. And we saw the first price swing. Then the Vortex score, as we're kind of following that chart down, turns yellow. And then we have another high Vortex score a few days later with that second circle at the top and then a massive price swing again. And this is for Axio Infinity. A lot of stuff's been developing around this project and we've seen it go from, from 6, 14 to 9, 24. Then we saw it go from $10.60 all the way up to 16 in just several hours. And that Vortex score was able to kind of capture that and really kind of look at things through the algorithmic lens. So I know Jordan's been talking a lot about Axio Infinity. What do you got, Marcel?

I just want to highlight that after there's some Twitter activity or some news that comes out and vortex spikes, it's natural that the Vortex after a couple of days or a couple hours will go down. That does not mean it's a sell indicator. That just means that that hype, that momentum has passed away. So it's not a sell indicator just for readers, our viewers to understand it.

Yeah. And there's definitely different strategies that people use inside the community. Whether it means they're buying at certain Vortex score levels and then holding for a certain time period, whether it's an 80 score all the way up to 100. You know, those are, those are kind of like different strategies because the next thing that we want to get into about markets probably is we want to get into the, the VGX token. This was something that, that we had talked about on the pre show that we want to kind of show you that last one little example of the Vortex score where it really was able to, to impact the price. And you see that first circle there we had that green line at the top that's indicating a good Vortex score. And then on that white line again, huge, huge indicator there where we saw that, holy smokes. All the way at the bottom and then a huge surge up. But yeah, that's, that's kind of the Vortex score in a nutshell. It's a huge, huge piece of the platform and it's something valuable. I think that everyone that's, that's using Markets Pro typically looks at.

Yeah, it's about, it's about, I find it a valuable indicator and it, it provides good, good insight into just sentiment and, and current market conditions, in my opinion.

Yeah, yeah. And I, I know we have the much anticipated special guest for today. And let's, let's go right into the special guest for today's market report. We would like to welcome Mr. Scott Melker.

How's it going, man? What's up guys?

Yeah, thanks for joining us today.

Thank you, Marcel.

Yeah. For those who don't know, Scott, he is a crypto trader investor at Texas West Capital. He's an advisor to a number of blockchain based projects and he's the author of a popular Wolf Den newsletter and host of the industry leading to the Wolf of All Streets podcast. Welcome, Scott. We are happy to have you on today's show. A lot of good questions for you as well.

Let's do it.

Yeah. So let's jump right into things. What niche inside of crypto are you most bullish on right now?

I'm supposed to say bitcoin. Right. So I don't anger the maximalists. What niches there's only bitcoin. No, I think it's pretty. I think it's pretty obvious at the moment, honestly, that the NFT space is booming, the defi spaces are booming, that we're seeing really these sort of niches, as you mentioned, branch off from the hole and find their own life. It's funny, people talk about alt season or what the market's gonna do, but there's been no time really in the past 12 to 18 months that something in crypto hasn't been booming. Right. And so if you consider NFTs as part of the altar coin market, I don't obviously, but you know that that's been going absolutely crazy while everything else has been boring this summer. So I would say DEFI and NFTs. You know, I'm more of a fine art collector in the NFT space. I'm not flipping pudgy penguins and, and handicapped apes or whatever, I don't know what they're called but, you know, or fluffy unicorns. But I'm loving watching people do it and make an incredible amount of money doing so. And I think that that's really just beginning.

Yeah, definitely. Now, where do you see the markets heading here overall? Just from like a macro perspective, the next 30 to 60 days, I'm supposed.

To say up only, Right. I generally don't make 30 to 60 day predictions because they make me inevitably look stupid. And so I'm really not a fan of placing time limits on targets because the odds of you being correct and your crystal ball being accurate are or minimal, I would say, I think that if we're just looking at the market as a whole, obviously bitcoin leads. And so we left consolidation in my mind, you know, accumulation when it broke above the 41, 42, 43 area. And so I'm not surprised to see that move exhaust. You know, whether we get a retest of that area I've been looking for, it doesn't mean we get it. And then I think, you know, it's up from there. I think that the bearish news cycle that came with the leverage liquidations and price drop is somewhat over. And with price rising, we'll probably see another sovereign nation make bitcoin legal tender or another Tesla type buy. That'll spark things and send us heading up. And I think that if bitcoin rises, a rising tide will lift all boats.

Are there certain levels that you're looking at right now, in particular in regards to. To bitcoin?

Yeah, I mean, I think everything from 40 to 43, you can pick any level in there, depending on your strategy is kind of the key support. Now I mean my view is right around 41, 42 we made a higher high and broke the bearish market structure and that like I said, we sort of left that range that we were in for three months. So I would be a bit surprised to see us trading back in it. I wouldn't be surprised to see a wick or two down there and some opportunities to grab some liquidity. But. And then above that I think 47 is key right now. Very clear again, 47 to 48. A line is a zone on a chart, right? I mean you don't need to be that precise. And above that we're going to get the 50 sort of psychological. And above there, you know, pretty clear sailing I think to the, to the previous highs.

What do you think it would take to push the price up to that? Or like a hundred thousand dollar Bitcoin?

100. I mean it's only a 2x, right? It's funny because 100 seems so crazy when you've been here for a while and you think about in perspective what previous prices were. But when you consider the fact that Bitcoin went from 3,800 to 65,000 in a year last year doing a mere 2.2x from 46 or 47 to hit 100,000 is nothing. So I think, personally I think that could happen just organically without a catalyst. But if we're talking about what sets it off again, I think it'll be some news event that gets people confident again, brings retail pouring back in. But interestingly, I mean on chain retail is kind of back. I know a lot of them obviously got rinsed on the drop. But we are seeing a lot of small accounts sort of starting to accumulate again as well obviously as the larger accounts that we are accumulating down in the 30s. But listen, I just don't think there's. That there aren't that many sellers here. I think people who wanted to sell somewhat sold. I could be wrong of course. I mean we could go to 10,000 or zero as people like to say. No, I don't think that will happen, but I'm aware that anything could happen. This could be some sort of a bear market fake out. I just don't really see it right now. I think the huge drop was largely a result of liquidations and went much deeper than you would have expected. I mean $10 billion were liquidated from 60 to 50amillion individual retail accounts and it took less than a Billion in shorts being liquidated to get from 30 to 43. Right. A few hundred million. So it's not even the same ball game from what happened on the way down and what's happening on the way up. So I just think that the demand is increasing and supply isn't at the most very basic level. And that could take us, but we get one more, Amazon buys Bitcoin, we're going to 100,000 in a month.

Yeah.

Scott, I'm curious, what allocation do you recommend for Bitcoin and Ethereum versus Altcoins.

Right now in someone's portfolio? Like a portfolio allocation, it's different for every single person. And I have to make clear I am not a financial advisor, although I play one on TV here. I think that's changed over time and it really depends, I think on how comfortable you are with the market, how much knowledge you have and how long you've been here. If you're brand new, that answer is different than if you've been here for two or three years. So I think if you're brand new, you start buying some Bitcoin, you start touching these assets, you get a feel for it, you send a bit to a friend, you make them send it back because you don't want to actually give it to them. And then once you're familiar with Bitcoin, you start to buy a bit of Ethereum, you start to take that and then from there you start to go down the longer tail of risk when you're more comfortable. I believe that generally I like the standard portfolio balance view which is 70% long term, holds 15% cash for buying dips, in which case for me is USDC earning interest on any of the number of platforms where you can do that 10% a year and then 15% for trading, you know, and so you can lever, you can, you can ratchet that up big time. If it's like a full on alt season and you're confident, go ahead, you know, go above that 15% for trading. And so if you're considering your long term holds, I have a pretty like refined strategy on how I do it. It used to be almost all Bitcoin. Then I went to sort of like a 75, 25 Bitcoin Ethereum. Then Ethereum made itself a much larger percentage. Right. Because it's been just crushing obviously. And then the smaller part of that portfolio is the leftovers. The last 10, 20% of successful alt trades of the past. Right. So if something does a 10x, a 20x, a 30x, I throw the last 10, 20% that I haven't taken in profit into my long term holds as a moon bag. Maybe I'll wake up in 10 years on a yacht because of some coin that I forgot I owned. And that's basically how I approach it. But I think your average person should be, you know, heavily weighted to Bitcoin and Ethereum in whatever proportion they view. And you know, I think institutions that are starting to get interested in Ethereum are generally looking at it as a 75, 25 Bitcoin Ethereum split from what I've heard talking to people on the podcast.

And so do you think China's crackdown on mining is really good long term? I know, I think you got involved in mining now, haven't you? Is that good long term for bitcoin?

Yeah, that's actually when I got into mining. The, literally the second I heard that news, I hit up Whit Gibbs at Compass Mining and I said, how do I do this? And he said, I'm not helping you. Go to my website. Didn't help me at all. So I can get like a 10% discount? No, no, just go to my website. So I did. And no. Yeah, I view that as. It's funny that it was such a bearish narrative, obviously for the price drop from security 65 to 30, because if you zoom out, it was the most bearish narrative was that mining and bitcoin was centralized in China. Right. We've been hearing that for as long as I've been here. The worst thing about Bitcoin was the centralization in China. So China makes the mistake of basically relinquishing that control and somehow that becomes the bearish narrative, showing you how absurd the narratives are surrounding bitcoin and how they just follow the price either way and they don't lead it. But yes, I think that obviously with the energy debate still being somewhat hot, although it's cooled off, anything that removes that from China and moves it to more energy conscious miners in countries that are cracking down a bit more on it is better. I think Argo Mining just announced that they're, don't remember what they called it, environmentally positive. Now between carbon credits and renewables, they're actually benefiting the environment rather than hurting it. You know, we know riot, Mara, all those are moving in that direction. So I think anything that removes control from China is a good thing, mining and otherwise, very good thing.

So like, is the US going to be the ultimate beneficiary of this, this kind of shift from China or is.

It going to be, I think everywhere not named China is the beneficiary, beneficiary of it. I mean, I think that there's a lot of interest, interest in the United States. So I think that, you know, we have these huge sort of poor pools and publicly traded companies. So I think the eyes are on them. I view investing in mining stocks as sort of like a leveraged bitcoin play. Right. They have more downside when bitcoin drops and more upside when it goes up. But if you're trying to gain exposure to bitcoin, buy Riot, buy Mary, buy one of these stocks and you can do that in your ira. You don't have to touch bitcoin and you get more upside if you think it's going up, in my opinion. Right. So you basically get the benefit of the bitcoin price action. Go ahead, sorry.

Why not Coinbase shares?

Oh, I love Coinbase. I'm like, although I'm sunken down at the bottom of the ocean in a submarine with a hole on it in my position right now. But I've been averaging down on coinbase from like 330 down to the low 2/00 and I've even bought more 260 maybe on Tuesday. I think same thing. But I think the miners are more volatile. But I think that Coinbase will be one of the, you know, 10 largest companies in the world. I do. And maybe I'm wrong and frankly, I don't like Coinbase. Right. I don't use it. Yeah, when I did, it would be frozen every time I wanted to use it. You know, the fact that they were still last I had been on there were using SMS authentication, things like that. I just not a platform that I am comfortable with, but I. What I am comfortable with is making money. I really like it and I think that if you buy Coinbase and you wait 10 years, you're going to be rewarded. And that's sort of the time horizon that I tend to invest on at least.

So when it comes to on and off ramps though, what are some of your favorites that you like to use in regards to getting your crypto?

Well, listen, so I used to go full yellow and use all the exchanges that were not necessarily just say gray areas for United States citizens. Our options are extremely limited. I don't live in New York anymore, so I have at least some options, but I primarily use Voyager. I think they're a broker, so they obviously source liquidity from multiple exchanges. So filling is really easy. They do have a spread but no fees. So it basically ends up being comparable, probably or slightly less than Coinbase. But what I love about them, and I use as an off ramp and on ramp, is the fact that while I'm sitting there waiting to trade or buy, I'm earning 10% on my USDC because I hold VGX, which you guys just reviewed earlier. Hilarious. I mean, I bought, I don't know, $2,000 worth of VGX to get the 1% bonus without even thinking. And all of a sudden I looked down and that $2,000 was like 75 grand two months later. So it shows how nuts this market is. But, yeah, and I trade a lot, actually on Binance us. I don't know how many people actually use it, but it's really easy to get money in and out of. And there are some pairs there. And then obviously, like most of the rest of what I do is on Dexes, you know, like, I don't touch legacy Binance anymore. You know, I don't, you know, as much fun as that would be, and it used to be that was actually a huge, huge change in my entire sort of interaction with the ecosystem was when I truly gave up on using Binance and having access to all those coins and pairs.

Yeah. What are your thoughts on Ethereum fees and Dex usage?

Listen, Ethereum's for the. Ethereum is the 1% right now, right? I mean, you gotta be. You have to be kind of rich to use Ethereum. And that was even more true, I think, in March, April, May, when it was really, really going nuts. You know, when you'd go in there and be like, I want to send a thousand bucks. Cost 400 bucks. Great. You know, so listen, I'm hopeful that that will be solved slowly. But, like, I believe Eth 2.0, like the Lightning Network is one of those things that will perpetually be 18 months away until I'm dead. So I don't, you know, I have confidence it'll eventually happen. I just can't tell you when that will happen and what those improvements will be. But I think that there's so many options now. Right. And so easy. Like, I mean, I. I don't trade, you know, that aggressively at this point. But, like, I really like Matcha. I really like pangolin for an avalanche. You know, I've obviously used pancake swap. There are ways around those fees now. Polygon, you know, there are ways around those fees now that you don't really have to do it. But I still do a lot of the time because if you're trading, you know, if you're trying to move a position that has some size, you know, it's going to fit bill. And sometimes it's just worth sucking it up and paying the transaction fees. And they're really. I mean, you guys remember it was literally like 4 or 500 bucks for a transaction for a while there. Now it's something like 60, 70, $80 for me. That's fine, thank you. That's fine.

Yeah, it's doable now, I guess. What are you most concerned about right now in. In the markets? Just kind of like looking at things. Is it regulation? What does that kind of look like?

I'm concerned that I haven't bought enough while the prices have been lower because I failed to sell more of my material items to get more crypto. I'm really not concerned. I'm really not concerned about anything. I think bitcoin is an unstoppable force. I think they're going to make it really difficult on us, you know. But I think that once again, if you zoom, if you zoom out.

I.

Don'T worry about those bumps in the road. Right. I really do view them as opportunities for adding more to my stack and taking advantage of those dips. But listen, I don't have a fear of regulation. Part of me wants to say regulation would be good to the degree regulation is bad for the average person who is trying to hedge against the government. You want nobody to touch it. It's the libertarian ideal of bitcoin. But we all love when the number goes up and that requires institutions to buy in huge amounts and they want regulation. Right. So it's sort of like we love to say short the bankers, long bitcoin. It's really, really cute. And then the same people who say that, myself included, get really excited when a bank comes in and buys a few billion dollars worth of bitcoin. Right? And so it's a conflict. It's in our interest to see that happen and things like an ETF and more clear regulation, as long as it's not stupid. Regulation, I think, will help, really be a catalyst for the next move. Right now, I think that we had this FUD cycle. We had the China thing, the India thing, which by the way, we have every time price drops more than 10%. We had the energy thing. Okay, maybe if I had one thing that I think is concerning is the ransomware thing. I don't care. They act like criminals have never done anything outside of bitcoin. But I think that that's like a glaring. I think that's the next thing they're going to use to try to slow us down. I don't think it will hurt, but I think all the other narratives have been disproven, and that's sort of still rolling.

Well, even with the narrative surrounding that ransomware, you know, the. The authorities were able to actually track the transactions because of how transparent the bitcoin network is. So it's like, it's very counterintuitive.

We know it's stupid, right? But, you know, crypto makes it easier to hack people. And so, like, that's not a point against crypto, but, like, come on, we all love crypto, but let's be honest, like, it does make certain things easier for criminals, right? And so that. That's fine. That's the price you pay for privacy. And. And, you know, being in a nascent industry, it's funny, I had Mark Use go on my podcast not so long ago, and he made the point that he was always mocked for being the investor that was on the side of the bad guys because he's a bit older. And he was like, I invested in the Internet in the 90s, and everyone was like, you're with the porn dudes, right? And then I invested because it was all porn. And then you invested in bitcoin in the early 2010s. Well, you're with the criminals and the Silk Road and the drug addicts. And so that's the nature of every new technology is at first, it's basically adopted by the underground, and then it sort of spreads out from there into the mainstream. So. So, yeah, I mean, I think that it's problematic, but like you said, it's easier to track. If the Colonial Pipeline, if they had handed somebody a few suitcases worth of cash, I mean, it would have probably been like a movie where they opened it and then, like, blueprint shot out on their faces or something. But, you know, it would have been a lot harder to track that cash, obviously, than to figure out where it went using a distributed public ledger. Like bitcoin.

Exactly. Well, I do want to get in some, like, some quick, like, technical analysis questions for especially, like, our newbies that are kind of tuning in today. So, like, when you're looking at charts, what are some of the favorite indicators that you like to use when you're doing your technical analysis?

It's funny, I can tell you as a beginner, because we've all been there, you're probably using too much, right? I mean, I can tell you that when I started and through, like, the first years and Years of doing technical analysis, my charts looked like you were on acid watching a Pink Floyd laser light show. There are lines everywhere, like 17 indicators on top and bottom. Like my actual chart was like this much of the screen. So much happening. And I think once you advance in your technical analysis a bit, at least talk not for everyone, but I think you find that less is more, right? And you start to realize that technical analysis is a risk management tool and not a crystal ball. So for me, I want to be watching the things I think a lot of people are looking at. I'm not an MA trader, but when I see the whole community starting to talk about a certain ma, I'll throw it on my chart because I know that there's going to be bots or algorithms or people trying to trade there, so I can front run that or avoid being in that same crowded trade. But in general, I think if you're new, I would say focus on very simple things. Price, action, volume, right? I mean, if you see spikes in volume, they're consistent. Something's gonna happen and price hasn't moved. Something's gonna happen with price, right? So I would say volume precedes price is a huge key. So that's something that I really like to look at. And I just look at it on a naked chart. I'm not using like an indicator or a tool or anything. There's like five huge volume bars and prices only move 3%, right? It's gonna go up, it's gonna pop. And so I. Of all the thousands of indicators, being an Ichimoku maximalist and an OBV minimalist, I don't know, you know, I've always still loved rsi, but I only use RSI because I like to use divergences with rsi. When I see overbought or oversold and I see a divergence with price, to me that's a great potential bottom or top signal. So I'm not even using rsi, I guess in its classical sense of, you know, when it crosses 50, price action is bullish, things like that. And otherwise I just draw a couple lines. Like I said, you know, my lines are no more important than your lines. And if you draw your lines off wicks instead of bodies. How dare you? How dare you. Like, this community gets. People get so triggered by like, dude, leave my chart alone. Who gives a shit? Like, go live your life, man. And you know, the only reason you draw some lines and it gives you an excuse to place a stop loss. The only real, only point of a chart in my mind is to justify even if it's because like I use tea leaves and that's how I found my line. At least now I know what my position size will be exactly how much I will lose on my trade and how much I'm going to win if it goes well. And then I have to actually not be a spaz and change that plan once price is actually moving. Right. I mean I would say find a simple strategy that works for you and then focus more on risk management, positioning, position sizing and your stop loss and then never change it for the first years. Once you said it, don't like, don't go, oh, I placed my stop in the wrong place. It's going to hit and rocket the other way. We know you're going to, we know what you're going to do. You're going to move it down and you're going to lose more money. It's what happens. The moment that you take a trade is your most clairvoyant, clear minded moment when you're not emotional about it. The plan that you had is the one you should stick to. So that was a very long winded way of saying analysis simple and follow your risk management and don't alter your plan once you're in a trade.

Keep it simple.

Stupid. Keep it simple. Stupid. Kiss. Awesome. Simmons. Yeah.

Well Scott, we greatly appreciate you joining us on today's show for Market Report. Definitely awesome insights and we hope to have you on again on future shows.

Man, I'm down anytime. Thank you guys so much.

Thanks Scott.

Right on. Thanks a lot man.

Thank you.

Awesome to catch up with Scott and get to hear some of his expert advice in regards to looking at ta, looking at church, what he's seeing with the markets right now and ultimately what's going to happen with Bitcoin and Ethereum here in the future. Now we are going to roll things over to the, to the community here. All of our viewers that are watching today, we want to hear from you. What kind of questions do you have? So let's get right into our audience Q and A. All right, we have our Q and A from the community. Say the burning hot questions for today. Let's see what we got. Chime in. Ask us anything. Ask us. You know what, what are you thinking right now? What do we, what do you guys want to know about the market? Anything goes. Let's hear it from our community. Feel free to chime in. If not, we'll just sit here.

I didn't want to tie into what Scott said there. I like about CT Markets Pro is that it looks at Twitter volume in trading volume and that is like a few of the major like, like things that you just analyze and like he was saying, yeah, I'll see that the trading volume on something spike up real quick and then it like before the price does. And that's a really good indicator, I've noticed.

Yeah, I, I typically like to use like OBV and RSI and then pair that up with a nice little Fibonacci retracements. We're, we're tracking, you know, previous highs, higher highs, those kind of things. That's why I like to use in a lot of my ta, especially when I'm looking at defi tokens, which is my favorite. Love trading those defi tokens. Marcel, is there any, any particular like indicators that you like to use?

Well, the ex. The Exponential moving average, 50 days, 200 days definitely should be your first indicator. Tech Ta. Whenever the price is crossing the 50 or 200 days, it's really strong buy or sell signal from me.

Very, very interesting. Yeah, yeah, exactly, man. Sometimes, like Scott said, don't over complicate it, especially when you're learning you're a noob. It's, it's really easy to get distracted by all the bells and whistles on like a trading view or that kind of stuff. And actually by using Markets Pro, it breaks it down and giving it to you very simply. I think that's what Vortex Score and Newsquake do is just give it to you simple. But let's go ahead and just kind of roll this into any kind of closing thoughts. What do you got for us today, Marcel?

I want to hear your opinion on NFT market as a whole. Not just about axes or whatever, but NFT as a whole. Because personally I don't get it. Yeah.

So I, I'm going to address this and we do have a question from the audience. So I. So NFTs. I'm bullish on everything NFT. I've been on NFTs since last summer. I created art on rarible. I love NFTs. I love the use case because I don't think it's just, it starts out with the artist and the musicians and I think what it's doing is it's going to disrupt that, that industry where you're no longer going to have the massive labels who are getting the big benefits. It's going to transfer over to the movie industry. It's going to transfer over to the real estate industry. I think real like all of these industries are going to start being impacted by NFTs and it's just starting out with a lot of the art space, the gaming space. Like we've seen with Axiomfinity, I think there's a huge utility for non fungible tokens. So I'm very very bullish on that in particular right now, even in regards to a lot of the marketplace stuff. But yeah, so we do have a community question here. Thoughts on exchange coins? Are these coins that you're typically looking at, Marcel?

I think most of them are problematic.

Why?

Because people think that those coins are like securities or equities or your owner of part of the exchange because there will be a 20% burn every month of the profits and whatever. But that's not what happens when you buy a token because you're not a shareholder. If the company has a profit it's going to end up on their balance sheets. Not for you, it's not going to be paid back. Most of the burns happen when coins that were not on market they were not being traded. So for example BNB Binance coin, they issued 200 million coins but they said from the beginning that in the future there will be only 100 million coins in circulation. So the burn process doesn't interest me. If they pick up some of the money and buy those shares at market okay, 20% of the profit from the exchange we're going to buy those coins that were circulating on market, on the free market, on the most sum of change burden. Okay, that's a different thing. I don't think regulators regulations will allow it but yeah that would make sense for me. But having said that I see future for BNB because now it created some ecosystem. It has a binance chain has binance smart chain, it has access, it has some means of surviving without balance but for the most of the OkIO, OkX, Huobi FT, FTT or from FTX I I right now I don't see a future for them.

Yeah, I'm more interested in the decentralized exchange tokens like a uniswap, a sushi swap. Those to me have a lot more long term viables like standard even BNB. If people really start migrating to D5 indexes BNB is going to suffer even though they have a pretty extensive decentralized exchange ecosystem with pancake swap and whatnot. But yeah, I'm really bullish like even like we just talked about earlier and Scott mentioned the voyager token, that's an exchange token and it has a lot like they just part the re part of the reason it popped off was because they, I think they did a token swap and you can, it's really building out as D5 platform and the ability to stick the Voyager token on there to earn extra rewards. It's, it's a, it's a, it's a, it's an income play. People can get a unit swap or sushi swap and deposit them on these platforms and earn a yield on their tokens. So I don't know, I think it's a really good long term play as a part of your portfolio and that's not investment advice. That's just my opinion.

Yeah, I, I'm bullish on certain exchange.

Explain the difference. Sorry Servant. I think it's worthwhile for Jordan to explain the difference between being a liquidity provider and being a uni. When you swap token holder, what's the difference between those two?

Liquidity providers will put a token that you like, say Voyager token and Ethereum and you'll combine it on. If you do it on a Uniswap and you're providing liquidity for the exchange. So people that want to use the exchange and trade their tokens, you're kind of being the market maker in a sense but you can suffer impermanent loss. So say Ethereum price goes up and Voyager just starts tanking you as a liquidity provider you might start getting a lot more of the Voyager tokens in your Ethereum in your, in your little stock stack might get lower. So there is impermanent loss. That's why I, I try to focus on coins and projects that I really, really like long term if I'm going to provide liquidity or even just a simple stable coin pair like a USDC USDT pair. Yeah. And then there's other platforms that allow you to just simply stake the token whether it's like dinos swap or even. I don't know if Uniswap has the ability to stake uni tokens but a lot of, a lot of the platforms out there do have the ability to just stake the simple token and with that get a percentage or a little piece of the exchange fees from that exchange.

Yeah, one of the exchange coins that like I think actually has real utility is BNB because it's used on Binance Smart chain to, to facilitate gas fees, all that kind of stuff. When it comes to Dex coins though, it's like there's not really a lot, a lot of use case for those in my opinion. And so like when I'm looking at those I am assessing like use case. And that's, that's definitely one of the things where it's like cake is ultimately tied to BNB because BNB operates and runs on the Binance smart chain. So inherently some of those Dex coins are kind of tied to a lot of the other exchange coins. But great question from GH crypto guy and that is going to wrap things up. Any final thoughts on today's show for the market report? Marcel?

Well, I read most of what Scott Melker said. He's an expert on TA analysis. But I've repeated this. Cryptos do not exist in a vacuum. If the Federal Reserve is doing something, if the China regulation is banning cryptos and miners, you gotta be attentive to that. So if you have a platform like Citipro that helps you to spot the major news, it's going to make your life a lot easier. A lot easier. But remember we're not in a vacuum.

Point.

What about you Jordan? Any closing thoughts for today's show?

Yeah, I'm gonna kind of echo his sentiments where like the, the crypto market is going to be susceptible to what goes on in the wider world. But in my like as Scott Melker mentioned it going to 100k is only like a little bit over a 2x from here. Nothing has changed for me in the long term perspective of cryptocurrencies and why I got in originally back in 2017. I'm a long term holder. I don't look to try trading and out because I don't want to deal with the tax implications. So if that's your, if that's your perspective on it too. Try not to listen to the day to day FUD and like get all worked up by some of these traders and analysts and just stick with your, your intuition or like your, your choices and I don't know, go outside and enjoy the sun if you can.

Buy and hold, buy and hold. Love to see it, love to hear it. We appreciate everyone joining today and a special shout out to our team, the production team for today's show. If you haven't like subscribe, go follow Cointelegraph, YouTube, Twitter, Facebook, Instagram, all the platforms go check out right here cointelegraph. We appreciate you guys joining today for the market report until next week make sure you're tuning in 12:00 clock on Thursdays. Thanks everybody.

Have a good week.

It.