On the Radar – Coins to Watch 14/03

  • Bitcoin enters price discovery this week & why $80,000 could be a level to watch.
  • Wall Street giant Franklin Templeton provides insights into the patterns that exist in the memecoin culture.
  • Altcoin Analysis of Solana Ecosystem Coins: JUP & WIF

Another huge week of milestones for the digital asset community, with Bitcoin yet again putting in a new all-time high almost on a daily basis. With this move into all-time high territory, we now enter a phase of the market known as price discovery. I’ll touch on what this means and how the game changes for Bitcoin below. 

Related: Bitcoin ETFs Hit Record $1bn Daily Inflows

We’ve also seen notable trends within the altcoin space. Specifically Memecoins leading the way with a now reported market cap of $59 billion USD, according to CoinMarketCap. 

Measuring Meme Coin Culture 

Franklin Templeton, a prominent establishment on Wall Street has described in a recent report that despite lacking “inherent” value behind Meme coins and being highly volatile, they do play a role in maintaining a “strong relationship” with their native networks. For example, the Solana-based Meme coin BONK is a shining example of how the price of BONK has moved in near lock-step with network/wallet activity expansion since the bear market. However, the paper also cautions about the practical worthlessness of meme coins without utility​​.

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Bitcoin – BTC

As we enter new territory for price, the game shifts for Bitcoin in the way we can technically map out price. We no longer have any structure on the far left of the screen to source significant levels. 

This is where a tool like Fibonacci extensions can come in handy for finding technical projections based on “the golden ratio”. This mathematical ratio has been identified across various natural phenomena. In the context of technical analysis, Fibonacci extensions and retracements offer a systematic way to forecast where prices may find resistance or support. 

Fibonacci ExtensionPrice (USD)
1.272$83,562
1.618$102,087

We can also look at option market data for Bitcoin, which for the 29th of March contract suggests that volatility could continue until $80,000 as per the gamma profile. 

Source: CoinGlass. Derebit Options Gamma for 29/03/24 contract. 
Source: CoinGlass. Derebit Options Gamma for 29/03/24 contract. 

So there is some confluence from a data perspective currently around this $80,000 figure in the near-term. For a further breakdown and review of all this information check out my latest video on Crypto with Pav.

Source: TradingView
Source: TradingView

Bullish scenario 

Price continues to move higher, towards the next key Fibonacci level (1.272) $83,562 USD. 

Bearish scenario

During the remainder of the week, we start to see price reverse on lower time frames and head back to retest the previous all-time high of $69,000 USD. 

Jupiter – JUP

As we continue to see underlying performance across the Solana ecosystem, Jupiter has been among the recent top performers. Having recently carried out one of the biggest airdrops to date earlier this year, hopefully, some of you were lucky enough to get an allocation. 

Source: TradingView
Source: TradingView

Using a Fibonacci Extension, as we did for Bitcoin, we can look to forecast areas of interest. 

Bullish scenario 

Should we continue to trend higher, the next key levels using Fibonacci extensions are $0.9927 (1.272) and $1.1451 (1.618). 

Bearish scenario

Failure to hold market structure above $0.7785 could result in a further markdown. 

Related: MicroStrategy’s Saylor Challenges BlackRock, Vows to Increase BTC Holdings

dogwifhat – WIF

dogwifhat has captivated the meme ecosystem, quickly becoming the fourth largest memecoin with a market cap with $2.7 billion USD valuation. While everyone may be puzzled as to how there is any intrinsic value, their website states the project is all about “literally a dog with a hat”. With that being said, it has been respecting technical structure and it’s also soon to appear on the Las Vegas Sphere

Source: TradingView

Using a Fibonacci Extension we can look to forecast some areas of interest. 

Bullish scenario 

Continuation of the current breakout, with the next key extension level residing at $2.9323 (1.618). 

Bearish scenario

Failure to maintain this trend, and breaking below $2.60 could create a bearish shift in market structure, precipitating a future mark down towards previous highs and lows. 

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See you all again next week.

Keep up to date.

Stay informed and connected! I’m excited to announce my new YouTube channel, Crypto with Pav, where I dive into the latest trends in cryptocurrency, offering insights on what’s coming next and highlighting news I believe is crucial. For frequent updates, make sure to follow me on X.

Cheers!

Pav Hundal
Author

Pav Hundal

Pav Hundal, is a trader at heart. Making the transition from the FX markets to the dynamic world of cryptocurrency in 2017. With a keen eye for both technical and fundamental analysis, Pav places special emphasis on tracking macroeconomic conditions to build narratives around current trends. Currently, he lends his expertise as the Lead Market Analyst at Swyftx.

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