Divine Investing

We are switching our thinking on L2's slightly and are removing $OP from the structure. One reason is that there are numerous L2's on the market with more coming and there is no clear answer which one will be the winner. Another reason is that even though $ARB and $OP have good fundamentals a large majority of the tokens have not been vested yet and are unlocking daily/monthly. Therefore the market caps for these coins is going up at a much faster rate than the price.

These are the reasons we are moving Optimism's share of the portfolio into $RUNE. We have had it in our structure in the past, most of the tokens are already vested and with it we are adding our exposure to the $BTC's ecosystem. It has also had a very similar retrace from ATH compared to Optimism.

As far as our other coins go - $INJ and $TIA have had the strongest bounces, while $FET has been performing the best overall.

Today is something what we call a "max pain" day. Something that happens a few times during a bull run. After altcoins have dropped significantly in the previous weeks they have dropped again today because of the news that Iran has attacked Israel. We think that the market has overreacted and will correct itself sooner or later, but we could see more downside. This event could be compared to Covid panic in our opinion. All we wish for is peace, war is never a good solution.

As far as our strategy goes we still believe we are in a bull market. Yes, it is hard to hold through these downturns, but this is the nature of crypto, it is very volatile. As we have mentioned in the past we will not be rebalancing to stable coins while we believe we're in a bull run, because these downturns are extremely hard to predict, especially when something happens like it did today.

It's hard to keep your emotions out of the picture, but the more times you go through downturns as such, the easier it gets, although it's never easy.

It looks like $INJ is finally starting to move after almost 3 months of consolidation. It has broken and retested the triangle structure which looked bullish to us 2 posts ago, we are attaching a picture below. We have once again entered the price discovery phase. We feel that our strategy has been performing quite well, despite the fact that Injective has been moving sideways and that almost half of our strategy consists of it. This is largely due to gains in $IMX, $OP and especially $FET. $TIA remains in consolidation for the time being and will break out of it sooner or later in our opinion. In case Injective will have a sharp increase in price we will be scaling back our position and rebalancing it to other coins.

Today was also a CPI (Consumer Price Index) day in the US and even with inflation being 0.1% higher than expected, the stock market has reacted positively so far, which is a sign of a strong market and is also very positive for the crypto market at this moment.

We continue to see strong inflows from $BTC ETFs with over $500M inflows just yesterday and over $10B since the ETFs were approved. The one negative thing is that there is a divergence forming on a daily time frame on Bitcoin from a technical standpoint, which normally leads to corrections, that is why we would not be surprised to see a pullback in the coming weeks.

If you have any questions or do not understand some parts of what we have written above feel free to ask us in the comments and we will do our best to answer in an understandable way.

We are over 100% up on $FET since our last rebalance and it was up 60% before that one. It has increased from 9% in our structure all the way up to 16%. We are taking some profits on it and increasing our $INJ, $TIA and $IMX positions slightly.

With the current $BTC ETF inflows we believe we can expect the all time high resistance to break in a short amount of time if these inflows continue.

We are attaching the TOTAL3 graph (total market cap excluding $BTC and $ETH) that we were talking about in our previous post. We have broken and retested the resistance, looks like we are heading further up, but we are still much further from the top than $BTC is, therefore the potential on altcoins is much higher.

We have decided to remove $ARB due to a huge unlock coming up in March and also due to the fact it's been underperforming lately. We're increasing $OP slightly to offset the reduction in Arbitrum.

We are also increasing other assets, primarily buying up $INJ. It is looking very bullish from a technical standpoint and also we believe it is one of the gems of this bull run. We have bought into it around $6 and will most likely continue holding a large chunk of the portfolio in it for the majority of the bull market unless something unexpected happens.

ETFs continue with positive inflows, that's why $BTC does not stop printing green candles. Halving is basically around the corner at this point and it seems that supply shock is coming when taking into the account these two things.

Sooner or later the gains from Bitcoin will start flowing into alts, we believe we have not entered the true altcoin season at all yet, that is when we will see most gains. So far we have only had a few altcoins that have overperformed, but the altcoin market as a whole is still very far off the all time highs.

We are attaching a screenshot of Injective's chart, since we can only add one photo we will share TOTAL3 graph (marketcap of all coins excluding $BTC and $ETH).