The Wolf Den #128 - Legislators Are Paying Attention To Crypto
Altcoin Charts
LTC/USD
Litecoin appears to be forming a cup and handle on the 4 hour chart. You can see the definitive move up (blue arrow), the two clear equal tops (almost equal) and the consolidation below the red resistance. A cup and handle is ONLY VALID as a continuation pattern - they are NEVER seen at the bottom for a reversal.
The safest way to approach this pattern is to buy a break of the neckline, in this case the red line at $94.028. The target is around $123, based on the depth of the cup - shown below.
VET/BTC
VET looks strong. We had the break of the descending black line which signaled an end to the downtrend. I shared this as a trade which is still certainly active. It found expected resistance at the black line and now appears to be attempting a push through. A close above this area should start targeting higher zones.
Legacy Markets
We looked at gold last week, and it did in fact have a nice bounce coming into support. As the dollar drops, metals continue to look good.
XAG (SILVER)
The monthly chart shows the trades that we took before, which were wildly profitable. We played longs in the green range for months after the macro breakout through the descending line and epic retest as support. You can see that price is bullishly consolidating after the major move up from the range lows to resistance above $28.
I would kill a baby unicorn for a chance to buy the range high retest as support, if we ever get it. That is $21.14. But let's zoom in for a clearer setup.
The red boxes are the two areas that I am looking to long silver. The lower box is a bounce off of the range highs as support. The upper box (which can move based on where the line is) is a break of the fresh resistance of the bull flag. This flag only has one touch down, so more of an idea than a confirmed pattern. Regardless, this is how I see it from years of looking at chart. The target is based on the length of the flagpole - up around $42. Huge potential gains.
Chart Requests
The chart requests will continue to be in video format moving forward. I know that a few of you like the quick descriptions, but it has become far too time consuming for me with the daily forma and most of the requests have little tradeable intel.
I hope that you understand that this is an effort to bring you timely content.
Also, I really like EGLD, which I shared at around 13:30 in the video.
S&P Dow Jones Launching Crypto Indexes
That's it. We made it. Cancel the bears and haters forever.
"“With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable and user-friendly benchmarks,” said Peter Roffman, global head of innovation and strategy at S&P Dow Jones Indices.
The move by one of the world’s most well-known index providers could help cryptocurrencies become more mainstream investments.
It comes as bitcoin continues to soar to record highs against the dollar, boosted by increased demand from investors who say the virtual currency is a hedge against inflation and a safe-haven asset."
BlackRock CEO Makes Positive Statements About Crypto
BlackRock, the world’s largest asset manager in the world with 7 trillion in AUM, is coming around to crypto. Larry Fink, the CEO, recently said that “cryptocurrency could possibly evolve into a global market asset.” He continued that, “BlackRock has seen considerable growth in interest in bitcoin, in the form of skyrocketing search volume on its website. Bitcoin seems to have 'caught the imagination' of many people, which could reflect growing adoption, but the market is thin.” From the perspective of BlackRock, this is true because they manage 15x the entire cryptocurrency market cap. What Fink really means is that the crypto space is too small for BlackRock to enter in a meaningful way. BlackRock and other major hedge funds are in the same boat until crypto achieves a much larger market cap. In short, more adoption and higher prices will open the gates for larger players.
Nigel Farage Sings Bitcoin's Praises
Nigel Farage is one of few politicians pointing out a few obvious facts.
1) Money printing is bad.
2) Bitcoin is good.
"In the interview, Farage derided the government's “funny money,” which it continues to print throughout the pandemic at warp speed, and concluded that it's therefore “crucially important” to get one's head around crypto.
He has elsewhere called Bitcoin “the ultimate anti-lockdown investment,” pointedly on-brand for his newly-launched Reform UK party."
Welcome to the revolution.
Inflation Up, Dollar Down, Bitcoin Up
The world is noticing what we have been saying for ages... that inflation is dangerous and the dollar is slowly wilting. This is THE MAIN CASE for Bitcoin.
"The money supply-boosting policies adopted by the Federal Reserve to counter the coronavirus-induced slowdown have done much to fuel the rise in inflation expectations, as well as the devaluation, or debasement, of the dollar.
The Dollar Index, which tracks the greenback’s value against major currencies, is seen near 91.00 at press time, a level last seen in April 2018, according to TradingView. The dollar peaked near 103.00 in March.
Such factors typically force both institutions and retail investors to buy traditional store-of-value assets such as gold. This year, institutions have increasingly poured money into Bitcoin strengthening its appeal as an inflation hedge."
The Wolf Of All Streets Podcast Ft. Cyrus Fazel
Cyrus Fazel first experienced the power of Bitcoin when he wanted to buy whiskey for someone in Iran. After tumbling down the crypto rabbit hole, Cyrus founded SwissBorg, a company dedicated to bringing this emerging financial revolution to the masses. According to Cyrus, decentralization is reshaping the way the world can manage and accumulate wealth.
Scott Melker and Cyrus Fazel further discuss the current market conditions, discovering Bitcoin through whiskey, a 52 million dollar ICO, an inclusive hedge fund, founding SwissBorg, creating the CHSB token, DeFi rug pulls, the rules of being a good CEO, managing 80+ employees, breakdancing and Napster, tokenizing stocks, the Spotify of wealth management, absurd stable coin interest, human capital and more.
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The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor.