Bitcoin Weekly analysis:

Bitcoin is now testing the last weekly support level and a break below this is extremely bearish. The next good weekly support is $20,000-$22,000 area. BTC needs to hold the $28,000 level at all cost. The weekly resistance is $35,500-$36,000 area. If you have any open position then put tight stop loss because a break below this support will cause heavy selling.

LUNA and UST explained

Terra is the layer 1 blockchain like Ethereum or Bitcoin blockchain.

Terra blockchain has two token:

1. LUNA (the native token of Terra blockchain)
2. UST (the stable coin on Terra blockchain)

UST is a stable coin and the price is pegged to $1.

To mint $1 UST the algorithm will burn $1 Worth equivalent LUNA. This means that if UST demand increases the supply of LUNA keeps reducing. There is 20% APY for UST (which is very good for a stable coin) and this keeps pushing the demand for UST.

There is one problem with this algorithm that you can redeem UST for LUNA that means you can burn $1 UST to mint $1 worth LUNA.

When UST start losing its value from $1, users panicking and redeemed it for LUNA and this create huge supply in LUNA coins and more coins are sold on market. This is domino effect and create more panic with price dump.

The team is also minting to support the UST price but unable to make it stable and dumping LUNA on market.

The team is trying to stable the price of UST. Stay away from LUNA and UST for the moment until the pegging is done.

Also we may see delisting of LUNA from major exchanges because of the price drop.

We may see this thing happen again for other stable coin. Read about how the coins works and which algorithm it uses.

Calculations for UST and LUNA #copied

- UST has a circulating supply of 12.12B
- It has a market cap of $7.4B
- To restore peg 12.12B - 7.4B = 4.72B of UST needs to be burned
- Terra validators have overwhelmingly agreed that this is what must be done, UST must be burned and peg must be restored
- To burn UST (and restore peg), you need to mint new LUNA
- To burn 1 UST you need to mint $1.00 worth of LUNA
- Let's do some simple math
- Say we can burn all the excess UST all at once right now, and restore peg
- To burn this 4.7B of UST we would need to mint $4.7B worth of LUNA
- At the current price of LUNA ($0.03), this means we would have to mint ~156B LUNA
- In this scenario, the circulating supply of LUNA would increase from 3.5B to ~160B (increase 45x)
- The price of LUNA will decrease to ~$0.0006
- Now you could in theory begin to slowly burn down that 160B circulating supply of LUNA (does this sound impossible and like a terrible investment? IT SHOULD SOUND IMPOSSIBLE AND LIKE A TERRIBLE INVESTMENT)
- The scenario described above is a made up fantasy and is not possible
- What's really going to happen is actually infinitely worse
- First problem: You can't burn all 4.7B UST at once because you can't mint 156B LUNA at once
- There is a limit on how much LUNA can be minted in one day
- Right now, they are voting to increase the limit
- This leads us to problem #2
- Second problem: As you mint LUNA, the price of LUNA goes down (LUNA is diluted), which means to burn more UST, you need to mint even more LUNA, until you descend into a vicious feedback loop of all out LUNA minting madness
- This is referred to by validators and people who understand the protocol as the "death spiral"
- Right now you can burn $1B UST by minting 33B LUNA
- The circulating supply of LUNA goes from 3.5B to 38.5B
- The price of LUNA is now 0.0027
- You then burn your next $1B UST by minting 1,000,000,000/0.0027 = 370B LUNA
- You burned your first $1B UST by minting 33B LUNA. The next $1B UST by minting 370B LUNA
- The next $1B UST would take trillions and trillions of LUNA
- I used $1B chunks just as an example
- Obviously the size of the burns would be much smaller as it depends on UST holders' bags
- The point is, LUNA can't recover unless they just decide to fundamentally change how the protocol works, which would result in Do Kwan and everybody else on the project being instantly indicted for fraud

Yesterday Bitcoin dumped to $26,700 and bounced from there immediately. The weekly structure is still holding. The weekly candle close is very crucial and needs to close above the support level. A weekly candle close above $32,000 shows the strength of bulls and we see some recovery in the market. A candle close below $30,000 will put bears in control and we see sideways movement or downward movement in the coming weeks.

KMD/BTC
Komodo is an open-source technology provider that offers all-in-one blockchain solutions for developers and enterprises.

Technically lying above strong support. RSI is in the oversold region. MACD is showing bullish momentum. It will pump hard from here. so now is the right time to build your position in it before breakout for massive profits😊

Targets: 888-1100 -1400 -1700 satoshi

KMD/USDT lying above strong support. Stochastic is giving a buying signal. It will bounce hard from here. so now is the right time to build your position in it before breakout for massive profits😊

Targets: $0.2652-0.3545-0.4575-0.5685

SL: $0.1884

KMD is ready to take off 🚀

ETH analysis:

ETH kissed the liquidity area and bounced from there. The support is $1700-$1800 and this is the last support. A break below this is extremely bearish and we may see a drop to $1200-$1300 levels (only if the support broke). The first resistance is $2330-$2400 area and we will a test of this area in the coming days. A break above this will give some strength to ETH and we see a move towards $2700.

LUNA and UST Completely delisted from Binance

https://www.binance.com/en/support/announcement/f68451879a1841a6a0f44025735d9236

Bitcoin Dominance is rejected from the 44.50-44.60% resistance level. We may see some relief in altcoins for some time. Bitcoin Dominance may test the 42-42.10% support. A break above 44.60% resistance will bring more downfall in altcoins. If BTC stable in a range for some time then we see 20-40% upward movement in altcoins. Don't trade without proper stop loss.

Binance Earn to Cease Support for LUNA and UST

https://www.binance.com/en/support/announcement/74379ffeb1ab482f9c0e6b90674cf245

Binance will again start LUNA and UST trading. Keep in mind that LUNA supply is 6.5 trillion on listing. Wait for some time, don’t buy on listing. We might see some initial pump and then the dump continues because of huge supply.


https://www.binance.com/en/support/announcement/f0c1cc8fb6454d1aa253bd6aec52580c

BAKE analysis:

BAKE made a new all-time low of $0.18 level. BAKE is in a long downtrend channel and there is no strength yet. The first resistance is $0.35 area. The support is $0.18-$0.21 area. New entries are very risky here.

Bitcoin is forming a symmetric triangle on lower time frames and we will see a break of this structure soon. The resistance is the $30,500-$31,000 area and we will see a move towards $33,000-$34,000 if BTC breaks above the $31,000 level. A break below $29,000 is bearish and we might see again $27,000-$27,500 levels. Use tight stop loss in all trades.

The TOTAL crypto market cap is bounced from the $1 trillion major support level. This is also a psychological support level and a break below this is extremely bearish. Now the resistance is $1.40-$1.50 trillion area and we may see a test of this resistance in the coming days. Let's see how the market reacts to this resistance and that will decide the next move.

We told you BNB is looking bearish and will test the major support area of $250-$260. The good thing is no daily candle close below the support level. The resistance is $330 area and we see positive movement only after this. A close below the support level is a red flag and we see more downfall. You can place your orders near the support level.

SOL is unable to hold the support of $66 and dumped hard from there. SOL is now trading near the major support of the $42-$49 area. if this support is broken then we see a dump towards the $23-$25 area. The resistance is $65-$68 area and $77-$80 area. We may see a move towards $65 in the coming days. Try to catch some SOL below $50 with tight stop loss.

DOT breaks the pattern in a downward direction and dumps more than expected. DOT is now trying to reclaim the $10.50 area on the daily chart. If DOT is unable to give a candle close above this level then we see more downward movement towards the $8.00-$8.50 support area. Wait for the weekly candle close before opening new positions.

#HOT Analysis :

#HOT is in a strong downtrend and reached out the major support level of $0.00199 - $0.00258. Price already took a reaction from the major level and can take a pullback till $0.00378 - $0.00445. You can look for entries at $0.00237 with stops below the support and take very low risk here as market is unstable.

Bitcoin again rejected from the downtrend line on lower time frames. The triangle breaks in the downward direction and we may see more downfall so place your stop loss in each trade. If BTC breaks the $30,500-$31,000 then we see some positive movement towards $33,000-$34,000. Today is the weekly candle closing and that will decide the trend for the next few weeks.

#SOL goes below $50 and i hope you opened some positions there. Our trade is nearly running breakeven but LTF looks bullish for till $61, which is the stronf resistance level and our profit taking area.