Happy Monday! For the love of all of our portfolios I hope the weekends….you know….didn’t impact you too much!
From the whole blocmates.com team welcome you to The Ape Enclosure. We will be sending this to you 2x per week so we can fill it with more alpha, more hidden gems and a more detailed look at what’s going on.
That way, you make more 🤑🤑 and we get to spend more time hunting for that 1000x gem.
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In Todays Enclosure
• Chart of the day. The $DXY in correlation to the $SPX
• Big new items. The Hash Ribbon says now is a good time to buy Bitcoin
• Other News. BAYC face liquidation and did Dogechain signal the top?
• Hidden Alpha. Yeah….we couldn’t believe it either!
Chart of the day
All eyes have been on the $DXY recently and if this is a new chart to you then let us explain. The $DXY aka the dollar index represents the demand for the US dollar. The higher the $DXY goes the more in demand the dollar is and the more likely investors, apes and degens alike are sitting in a cash rich position.
The $DXY has had 2 parabolic moves, one in 2014 and one that is happening right now and it doesn’t seem to be stopping any time soon given the next set of rate hikes are likely to be another 75 basis points. The RSI still has plenty of room to move to the upside (dammit!) until it hits its previous level of resistance highlighted in orange.
Whys this important? Well lets look at the S&P500 (yea yea its not a cool DOGE chart but bear with us).
Let’s look at the correlation between the $DXY and $SPX. Whilst the $DXY was crabbing sideways from 2015 to 2021 the $SPX was printing money…brrrrr, especially when those glorious stimmies came for our American mates during covid times.
But what’s interesting to note is when the RSI flipped and bounced on the $DXY around May ‘21 we saw the slowdown of the $SPX despite the upwards only movement of the chart (probably the first WARNING SIGN to proceed with caution).
Now, what we want to see is the re—crabbing off the $DXY or some form of pullback so that tradfi and defi can have another rally to the upside. With rates increasing by another 75 basis points…..we might just see more up from the $DXY.
Long story short, $DXY is in charge right now so keep this to the top of you watch list.
Hot news on the bloc
BUY BITCOIN NOW! Well let’s not be too hasty now shall we but one of histories greatest indicators has flashed the buy signal on Bitcoin after it’s longest period of capitulation. The Hash Ribbon looks at the rate at which miners are accumulating or capitulating. Charles Edwards, founder of Capriole Fund highlights it here in his recent twitter thread.
According to the signal, miners have finished a 2 month capitulation which is why the Hash Ribbon has lit up bright blue. We can see from the chart below what has happened historically. If you are new to hash ribbons you can read more here.
But hold up sunshine, I can see you want to ape but lets not forget these 3 things that could disrupt the next parabolic run:
The Fed and their rate hikes
Bitcoin has just broken trend
We are in a bear market…duhhh
Is this bullish signal? It certainly is BUT take it into your analysis. Will Clemete chimes in with his tweet here.
The news in snippets
Peanuts, may all be that’s left for BAYC owners as many apes are left in danger of getting liquidated as the internet bailiffs come knocking!
Who let the doge back in? Last week Dogechain was all the hype but is the party already over and did Dogechain signal the top as $DOGE dumps over 25%. A note from @DogeDesigner that Dogechain is NOT linked to Dogecoin.
Bed Bath and to the MOOON! As student makes $110m off of Wall Streets favourite meme stock Bed Bath and Beyond. Yup, there’s another topping signal loud and clear but well played Jake….well played
Heres the Deel
and a quick word from our super awesome sponsors who help us make this all possible
If you are a builder in this space and are hiring a remote-first team take a look at one of our partners, Deel. They allow you to hire, manage, onboard and pay from anywhere in the world without the hassle. Yes, Deel allows you to pay your team in crypto too…
Updates from the bloc
The latest thread
You heard it hear first, $XMON and Sudoswap but what is all the hype really about? Check this thread out from blocmates himself as he breakdown Sudoswap in its simplest form.
The latest podcast
Whilst blocmates himself was living it up in luxury Jedi and Chadmandan hosted the Friday Market show covering Market Uncertainty, Tornado Cash Dev Arrested and Regluatory Overreach….plus a total gaming geek out.
Soooo you want a 5 minute head start against the rest of the market, well here are our picks to add to your watchlist:
$AMPLIFI – Launched earlier this month and first mover AmpliFi is protocol for perpetual yield through a dividend-paying crypto annuity. With a total supply of 121,373 and 39,000 in the rewards pool, this could have legs.
The Ape Enclosure
We’re ready to ape in at any time. Got a good idea that needs funding? Send us an email with all of the info to [email protected]m
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