Author: 3HOUSE user @layX

After a full year of high inflation all around the globe, the world of finance was caught on fire with the recent bank failures and bad monetary policy decisions. FED raised interest rates more aggressive than most expected. This started to create cracks in the system that are just starting to show up and put in light, the poor management of banks with people’s deposits gave another hit to the fiat money (typical legal currency).

This spiked up attention to the world of cryptocurrency once again, with BITCOIN being the best performing asset of the 2023 year with more than 60% increasement in its value from the beginning of June. More attention to BTC means more money going in our market of interest, helping investors to diversify their portfolios.

Today’s hot token is Fantom, currently trading around 0.4$ mark. FTM is the native cryptocurrency of the Fantom network, which is a high-speed, scalable blockchain platform designed for decentralized applications and smart contracts. Fantom utilizes a custom version of the proof-of-stake algorithm to deliver its services and secure its network. This algorithm, known as Lachesis, is an example of an asynchronous Byzantine fault-tolerant consensus mechanism.

Fantom is a smart contract platform based on a directed acyclic graph that provides decentralized finance services to developers. The platform utilizes its own unique consensus algorithm and is powered by its in-house cryptocurrency, FTM. The main objective of Fantom is to address the issues associated with smart-contract platforms, particularly transaction speed, which developers claim to have minimized to less than two seconds. The Fantom Foundation oversees the development of the Fantom ecosystem, which was launched in 2019 with the introduction of OPERA, the platform's mainnet. Fantom is an open-source platform designed as an alternative to Ethereum that is focused on facilitating DApps and digital assets while overcoming the limitations of previous-generation blockchains. To achieve this, Fantom is committed to balancing scalability, security, and decentralization, and provides a range of tools to simplify the integration of existing DApps. Fantom is not only a swift, reliable and affordable payment solution, but it also provides on-chain governance, which allows users to cast their votes using FTM tokens (with each token representing a single vote). Additionally, users are empowered to express their level of agreement or disagreement with a scale ranging from 0 to 4.

Fantom competes with Ethereum and is a preferred choice for developers who seek to deploy decentralized solutions. According to its official documentation, Fantom's vision is to "facilitate interoperability between all transaction entities worldwide."

As seen above, we can’t start analyzing FTM before we check out how Bitcoin is doing. Because of its big dominance in power on cryptocurrency markets, you must have a clear vision of the price and the current trend. Having a bias can protect your capital and allow you to manage the risks properly. After a few months of Bitcoin sideways consolidation in the lowest points of the past 6 months, we manage to push up for almost 60% before hitting 2022 May low that acted as a barrier and did not let the price go higher. Taking a closer look, we are currently trading in a distribution phase which ends up with signs of weakness in the price and resulting in a dump.

Liquidity is what drives the market up and down, without it there would be no exchanging of assets between participants, therefore this is a must. Let’s take a look at our current situation.

We have two representations of the same principle, liquidity in the market. Where there is liquidity, price wants to go. As we can see, in the past seven days Bitcoin had a small consolidation phase which resulted in money pools forming at both ends of the market. With a correction dump, we got rid of the downside liquidity which are just long positions’ stop losses. We are now faced with a substantial discordance in total short/long liquidations. Significant amounts of short stop losses are sitting at the 29k level.

These can help us end our distribution phase which will result in a bigger drop in the price, but we can take advantage of the possible short squeeze with Fantom.

After revisiting its 2021 macro high, at 0.65$, FTM traded in a falling wedge. Sell-side liquidity was taken out and helped the price reach a higher time frame demand zone(at 0.3$ mark), that resulted in a minor change of character which set us back in our wedge. We still have short position stop losses above the resistance trendline that can help send us back to our point of interest.

With the help of orderflow analysis we’ve found the optimal entry zone. Alongside volume profile, which is a tool with incredible appliances in daily trading, we can visualize the highest point of control in the previous push to the upside, marking out the region where large market participants added to their positions. The relative strength index indicates to us we are approaching oversold territories, trading does not work based purely on an indicator, but you can use it as bonus confluence.

We can start adding to our long position at 0.4$ mark with room to DCA (Dollar cost average) down to 0.36$ in case price allows us to. Partial profits will be taken, in order to minimize risk along the trade, at the following control points:

• 0.45$ taking 25% off our position and moving the stop loss to break even, this way securing a 1 R:R trade and turning it into a free trade from there on.

• 0.535$ taking 50% off our remaining position size and letting the rest run.

• 0.65$ final profit point for our best case scenario resulting in a 4 R:R trade.

This was an analysis made on the Fantom cryptocurrency to help you see an optimal long scenario. Monitor closely this setup and trade based on your critical thinking and risk management. ‘What we learn from history is that people don't learn from history.’ Warren Buffett

This is not financial advice, trade at your own risk!

ABOUT 3HOUSE NFA

NFA is a showcase of the high-quality alpha shared on 3HOUSE and an opportunity for the development team to recognize and celebrate the well-researched and expertly-constructed predictions made by some of our 3HOUSE community members.

Important note: Despite yielding positive returns for many investors, as the name states, NFA is Not Financial Advice and does not guarantee any results. NFA is merely to inform investors of potential market movements and general sentiment. Always do your own research.

Author: 3HOUSE user @layX

After a full year of high inflation all around the globe, the world of finance was caught on fire with the recent bank failures and bad monetary policy decisions. FED raised interest rates more aggressive than most expected. This started to create cracks in the system that are just starting to show up and put in light, the poor management of banks with people’s deposits gave another hit to the fiat money (typical legal currency).

This spiked up attention to the world of cryptocurrency once again, with BITCOIN being the best performing asset of the 2023 year with more than 60% increasement in its value from the beginning of June. More attention to BTC means more money going in our market of interest, helping investors to diversify their portfolios.

Today’s hot token is Fantom, currently trading around 0.4$ mark. FTM is the native cryptocurrency of the Fantom network, which is a high-speed, scalable blockchain platform designed for decentralized applications and smart contracts. Fantom utilizes a custom version of the proof-of-stake algorithm to deliver its services and secure its network. This algorithm, known as Lachesis, is an example of an asynchronous Byzantine fault-tolerant consensus mechanism.

Fantom is a smart contract platform based on a directed acyclic graph that provides decentralized finance services to developers. The platform utilizes its own unique consensus algorithm and is powered by its in-house cryptocurrency, FTM. The main objective of Fantom is to address the issues associated with smart-contract platforms, particularly transaction speed, which developers claim to have minimized to less than two seconds. The Fantom Foundation oversees the development of the Fantom ecosystem, which was launched in 2019 with the introduction of OPERA, the platform's mainnet. Fantom is an open-source platform designed as an alternative to Ethereum that is focused on facilitating DApps and digital assets while overcoming the limitations of previous-generation blockchains. To achieve this, Fantom is committed to balancing scalability, security, and decentralization, and provides a range of tools to simplify the integration of existing DApps. Fantom is not only a swift, reliable and affordable payment solution, but it also provides on-chain governance, which allows users to cast their votes using FTM tokens (with each token representing a single vote). Additionally, users are empowered to express their level of agreement or disagreement with a scale ranging from 0 to 4.

Fantom competes with Ethereum and is a preferred choice for developers who seek to deploy decentralized solutions. According to its official documentation, Fantom's vision is to "facilitate interoperability between all transaction entities worldwide."

As seen above, we can’t start analyzing FTM before we check out how Bitcoin is doing. Because of its big dominance in power on cryptocurrency markets, you must have a clear vision of the price and the current trend. Having a bias can protect your capital and allow you to manage the risks properly. After a few months of Bitcoin sideways consolidation in the lowest points of the past 6 months, we manage to push up for almost 60% before hitting 2022 May low that acted as a barrier and did not let the price go higher. Taking a closer look, we are currently trading in a distribution phase which ends up with signs of weakness in the price and resulting in a dump.

Liquidity is what drives the market up and down, without it there would be no exchanging of assets between participants, therefore this is a must. Let’s take a look at our current situation.

We have two representations of the same principle, liquidity in the market. Where there is liquidity, price wants to go. As we can see, in the past seven days Bitcoin had a small consolidation phase which resulted in money pools forming at both ends of the market. With a correction dump, we got rid of the downside liquidity which are just long positions’ stop losses. We are now faced with a substantial discordance in total short/long liquidations. Significant amounts of short stop losses are sitting at the 29k level.

These can help us end our distribution phase which will result in a bigger drop in the price, but we can take advantage of the possible short squeeze with Fantom.

After revisiting its 2021 macro high, at 0.65$, FTM traded in a falling wedge. Sell-side liquidity was taken out and helped the price reach a higher time frame demand zone(at 0.3$ mark), that resulted in a minor change of character which set us back in our wedge. We still have short position stop losses above the resistance trendline that can help send us back to our point of interest.

With the help of orderflow analysis we’ve found the optimal entry zone. Alongside volume profile, which is a tool with incredible appliances in daily trading, we can visualize the highest point of control in the previous push to the upside, marking out the region where large market participants added to their positions. The relative strength index indicates to us we are approaching oversold territories, trading does not work based purely on an indicator, but you can use it as bonus confluence.

We can start adding to our long position at 0.4$ mark with room to DCA (Dollar cost average) down to 0.36$ in case price allows us to. Partial profits will be taken, in order to minimize risk along the trade, at the following control points:

• 0.45$ taking 25% off our position and moving the stop loss to break even, this way securing a 1 R:R trade and turning it into a free trade from there on.

• 0.535$ taking 50% off our remaining position size and letting the rest run.

• 0.65$ final profit point for our best case scenario resulting in a 4 R:R trade.

This was an analysis made on the Fantom cryptocurrency to help you see an optimal long scenario. Monitor closely this setup and trade based on your critical thinking and risk management. ‘What we learn from history is that people don't learn from history.’ Warren Buffett

This is not financial advice, trade at your own risk!

ABOUT 3HOUSE NFA

NFA is a showcase of the high-quality alpha shared on 3HOUSE and an opportunity for the development team to recognize and celebrate the well-researched and expertly-constructed predictions made by some of our 3HOUSE community members.

Important note: Despite yielding positive returns for many investors, as the name states, NFA is Not Financial Advice and does not guarantee any results. NFA is merely to inform investors of potential market movements and general sentiment. Always do your own research.