On The Pulse - Edition #003
Welcome to On The Pulse, with Maui.

Hello and welcome back to this week's edition of 'On The Pulse.' Thanks to all who have subscribed and are reading this via email. If you're currently browsing, consider subscribing! If you find today's newsletter valuable, please recommend it to a friend and feel free to suggest topics or ask questions on my Twitter @jordymaui.

Another week has gone by in the crypto world, and we've seen bounces and green across the boards. That said, the week ahead is likely to be influenced by the US FED Press Conference and potential decisions or hints on rate cuts. But anyway, let's dive into this week's lessons, news, and charts!

Lesson of the Week: "Navigating Bitcoin Dominance "

This week, we're diving into Bitcoin Dominance, a crucial metric showing Bitcoin's market cap versus the total crypto market. We mentioned it briefly in last weeks newsletter incase you missed it. It's a bit like a crypto popularity contest, reflecting investor vibes and market mood swings. Understanding this can help you make better choices on the charts and when buying/selling and begin to understand how altcoins move in correlation to dominance.

🔍 Understanding Bitcoin Dominance:
Bitcoin's share in the total crypto market cap is a key indicator. A high dominance suggests that Bitcoin is the preferred choice, possibly seen as a safer, more stable option. A lower dominance indicates growing interest in altcoins, reflecting investor enthusiasm for broader market opportunities. To put it even simpler, when Bitcoin is rallying, money usually flows from alternative coins into $BTC. Alternatively, when Bitcoin cools off, moves sideways, or pulls back without significance, money will flow from $BTC into alternative coins in the market in what's commonly referred to as ‘alt season’.

💡 Why It Matters:
When Bitcoin Dominance rises, it often means the market is turning cautious, favouring Bitcoin's relative stability. Conversely, when altcoins gain, it points to a risk-on sentiment, with investors seeking higher returns in other crypto assets and Bitcoin moving in a more stable manor.

📊 Market Dynamics:
High Bitcoin Dominance can sometimes signal a bearish market for altcoins, while a decrease often aligns with altcoin rallies. It's a crucial metric for understanding where the market's focus lies. A great resource for keeping an eye on $BTC dominance is by checking out the dominance dashboard here.

🚀 Strategic Portfolio Decisions:
Bitcoin Dominance can guide your investment strategy. It helps in assessing the market's general direction and determining whether to allocate more towards Bitcoin or diversify with altcoins.

Major Headlines: "The Weekly Roundup"

This week we cover everything from airdrops to government BTC sell-offs and market leaders releasing new products and projections. This industry never sleeps, and there is constant progression and news. I aim to always bring major headlines to your inboxes, giving you a great overview of what's happened this week!

🌟 Jupiter Airdrop Arrival:

The Jupiter Airdrop on the Solana network has created quite a stir with the launch of the $JUP token. This event is not just another airdrop; it's a massive deal, especially for those who have used Jupiter. Eligible users are anticipating what could be a significant payday. The buzz around this airdrop stems from its potential to offer substantial rewards to its participants, highlighting its significance in the Solana ecosystem. This airdrop is drawing considerable attention from everywhere due to its large claim list and high promise. 
Read more about the Jupiter Airdrop

🔍 US Government's Bitcoin Sale Plans:
The US Government plans to auction $118 million worth of Bitcoin confiscated from the Silk Road, creating a caution in the crypto community. This substantial sale could potentially influence Bitcoin's price action, as large-scale disposals often do, GBTC outflows for example. The upcoming auction is eyed by many, wondering how it might affect Bitcoin's price and investor sentiment. Learn more about this significant Bitcoin auction

💡 Bitcoin ETF Ads on Google:
Bitcoin ETFs are stepping into the limelight with their advertisements now live on Google. This marks a notable shift in the digital asset's mainstream exposure and acceptance. These ads could lead to increased public awareness and acceptance of Bitcoin ETFs, potentially attracting new investors to the crypto market. Blackrock and Grayscale have already started advertising. Explore how Bitcoin ETFs are making their way to mainstream advertising

🎨 Pudgy Penguins' Success:
Pudgy Penguins have achieved a significant milestone by selling 750k toys and launching Project Overpass. These achievements highlight the growing integration of NFTs into mainstream culture and commerce. The project's success is a testament to the rising popularity and potential of NFTs beyond digital art. The team are doing an excellent job and continue to pioneer. Discover more about Pudgy Penguins' latest achievements and Project Overpass

📉 Dip in NFT Sales:
January saw a 36% decline in NFT sales, a notable shift in a once booming market. This decrease sparks discussions about the sustainability and future trajectory of the NFT market. Will February see a rebound, or is this the beginning of a more significant trend?
Read about the recent trends in NFT sales

Maui’s Weekly Analysis of Charts

Dive into the pulse of the crypto market with me for a quick overview. If there are elements you don’t understand here, don’t worry – feel free to ask me questions on Twitter. Interested in a specific chart analysis? Let me know! I’ll also be holding weekly polls based on your suggestions. Anyway, here are this week’s charts:

₿ BTC (Bitcoin):

• Recent Price Action: Over the last 7 Days, $BTC is currently up 6.8% from $39,800 last Wednesday to currently $42,800 as I write on Wednesday of Newsletter publishing (31st Jan).
  
  Last week, we bounced at $38,500 and remained optimistic that price would continue surging from here, we were on the right side of the idea and managed to catch some lovely moves to the upside.

• Weekly Forecast: Today marks a HUGE market occasion as the FED discuss rate cuts which are predicted to happen in March. Whichever way this news goes, expect volatility and some craziness before the picture becomes clear. If the news is positive, we can expect the rally to continue and look for $48,000 as a target again, if negative, we could definitely swoop as low as $32,000.
  
  Personally, I think the markets are definitely looking heavy as we have yet to fill any inefficiencies at lower prices and have been dragging up with no major pull backs for a while now. I think its more likely to be bearish news today and we see some healthy dips to buy but if that’s the wrong side, i’ll be adjusting and buying with the strength of the markets.

♦ ETH (Ethereum):

Recent Price Action: Over the last 7 Days, $ETH is up 3.21% from $2,200 last Wednesday to currently $2,300 - following the rest of the market in a less impressive manor from the bounces.

• Weekly Forecast: ETH is still stuck within the range of $2,150 and $2,450 and I expect todays major decision to help decide a significant move out of the range. Our high targets are in the $2,600+ region and if we break down, we will likely see $1,800 hit.
  
  For me, i’m sticking to the overall bias we can see some dips to buy but like all of the following ideas and analysis takes, will wait for major decision and market trends to catch moves properly.

🟪 SOL (Solana):

• Recent Price Action: Over the last 7 days $SOL is currently up 15% and has reacted strongly from the $80 lows, like the rest of the market. Currently $SOL is at a major turning point of resistance and is hovering at the $100 area of interest.

• Weekly Forecast: Will Solana stall at $100 for the third time and breakdown or pump through? Again, i’ll have to repeat the ‘wait for the news’ line. We can see two obvious scenarios though.
  
  My outlook for this week is to be patient and hope we see some good buying areas reached on $SOL and that $75 area tapped into before showing strength again, possibly even $60 if the overall market takes a turn for the worst. Failing that, $SOL must push through the $100 resistance and head to the highs of $130 again.

🔺 INJ (Injective):

• Recent Price Action: The last 7 days has seen $INJ rise 4% as it followed the market trend bounces but ultimately has chopped sideways. It’s been stuck in a top range between $31 and $42 since December and despite being a very strong coin to invest in, is waiting for a big move either way.

• Weekly Forecast: After bouncing and failing to push higher, setting a lower low it’s likely to me that $INJ will see lower over the next 7 days, especially with the Rate Cut news today. Our bullish scenario is looking to return to the $42 highs and continue rallying, our bearish outlook is buying opportunities at $30 or lower.
  
  My opinion of $INJ will likely show strength at the $30 area and we will be able to catch some lovely lows over the next week. I am however prepared to be purchasing more at a higher level, if the news comes out bullish.
  
  If you have any specific charts you’d like me to take a punt at next week, please do tweet me suggestions, i’ll happily poll ideas too.

📰 The Summary: From Crypto Trends to NFT Buzz

Each week, we will end the newsletter with a really brief TLDR (Too Long, Didn’t Read) assessment of what’s been going on this week across Crypto and NFTs. I hope this section provides additional value for those who read!

Crypto:

• 📉 Market Trends: This week saw bounces across the majority of crypto assets after a bearish outlook the week prior.

• 🪂 Airdrop Season: There are several airdrops about to take place in the world of crypto including Frame.io and highly anticipated Jupiter.

• 💸 Government want to sell stolen $BTC: The US Gvmnt are looking to sell $118m in BTC seized from a large criminal case.

• 🔮 Crypto Fundraising hits Jan Record: A whopping 180m has been fundraised for crypto industry related companies, a new record in jan.

• 💰 SOL stablecoin transfers 3x ETHs: Solana is back on top with over 2 times the amount of stablecoin transfers in comparison to ETH.

NFTs:

• 🐧 Pudgy Penguins Licensing Platform: Project Overpass has officially launched with its BETA website going live.

• ⛵ OpenSea is open to acquisition: OpenSea CEO claims they are open to be acquired after a huge fall from grace.

• 💼 BLUR Loans are continuing to rise: BLUR loans rise in volume as BLAST airdrop creeps closer.

• 🧟 Deadfellaz X Animoca: Deadfellaz have announced an official partnership with Animoca brands.

And with that, we’re wrapped up for another week. If you have any suggestions for lesson of the week, please let me know! If you enjoyed this weeks newsletter, please feel free to support by following me on twitter @jordymaui

Until next time!