The Wolf Den #135 - Money Printer Goes Brrrrr
Bitcoin Thoughts And Analysis
I remain long Bitcoin on Phemex with 10x leverage from $17,710. I see no reason to consider closing this trade for now. As you know, I took this trade primarily as a result of a clear bullish divergence with RSI on the 4-hour chart - the same setup that we played so successfully around Thanksgiving.
WEEKLY CHART
The weekly close near the high of the previous week after seeing a dip during the period. While we generally view seeing dips bought up as bullish, it's important to note that this candle is technically potential bearish when it as at the top. As I always say, context matters! A long wick hammer is very bullish at a bottom, but it called a "hanging man" at the top. It indicates that there was a lot of buying demand, but that bulls were still not able to advance price. That said, it's only bearish if the following candle closes bearish. We say something similar two weeks ago, and the demand continued to be strong. No issue. Still worth noting as a lesson, at the very least. Here is a summary of the "Hanging Man."
4-HOUR CHART
I drew it, I traded it and I will be patient and continue to do so. Price broke out of the descending channel, which som would argue is a bull flag. It's a bit too long to truly be a bull flag, but the meaning is effectively the same. Price appears to be once again consolidating for another potential move up. Very hard for me to feel bearish at all at the moment, even after the dip last week. We are near the all time highs once again.
Altcoin Charts
I have had some complaints that I have not shared enough charts on altcoins of late, but reiterate that this is a result of the market and not by choice. Further, I find it better to focus on a few pairs with much better trades. EGLD and POLS have been absolute monsters, even as alts have somewhat traded sideways. Huge gains. Sushi also still looks great, just working its way through resistance. LRC never managed to breakout, so no trade there. Same with LTC. VET still looks like it's consolidating for another major move up. You can revisit all of those trades. WAVES also still looks awesome, which I will show below.
COMP/BTC
The daily chart is encouraging. We once again had a beautiful move up, predicted by a clear bullish divergence with RSI. Price is currently attempting a break through horizontal resistance, which would be bullish. We also saw the clear break of the descending resistance on RSI that predicted this move. I shared that a while back.
Zooming into the 4-Hour, you can see that there is a clear bull flag that is presently testing resistance. We want to see a clean break out, which would coincide with a nice move through the horizontal resistance shown on the daily. If both of those occur with closes above on their respective time frames, we should see this fly. Target is shown based on the length of the flagpole.
COMP/USDT
The USDT pair looks even more bullish, having already broken out of its own bull flag. Price is trading above all 3 key EMAs (21, 50, 200) and they are all curling up.
Zooming out on the 4-Hour chart still, you can see the key level at $147.76 that is a clear launch pad for this move. Stops would be somewhere below that line if you choose to enter a trade here.
WAVES/BTC
This is an update, as we had a daily close above the key resistance level, if only barely. This give me greater confidence that this coin will continue to rise. I have been sharing setups on this since near the bottom, but this would be an area worth considering an entry or adding to a position. As long as it holds the red area now, this should continue up.
Legacy Markets
UAL (UNITED AIRLINES)
This is up 36% since I shared the most recent set up. It is presently at another key level, $48.95. That means it is not a buy yet. Also, note that this is a weekly chart, which mean to be really safe you want to this weekly candle close above before attempting to trade the retest as support. That's one view.
The daily chart looks potential more compelling. We had a recent golden cross between the 50 and 200 MA. You can read about a golden cross below, but it is simply when a shorter-term moving average moves above a long-term moving average. We can also see a clear bull flag with pressure against resistance. Consolidation below resistance usually leads to expansion upward. The target, based on the length of the flagpole, is around $67. So the trade there would be a clean break above the blue flag.
Keep in mind that airlines are risky, and this could be stifled if Covid starts to shut down travel.
SCIFI Launching In The Coming Days
The low- and mid-cap, curated crypto-gem basket.
With the recent boom around index products in the digital asset space, one project has been gaining a lot of attention lately. They asked me to serve on their "Galactic Council" an an advisor, and I found the offering interesting enough to accept. As always, DYOR and see if it's up your alley. My involvement should in no way compel you to participate.
$SCIFI Finance is a curated, DAO-governed crypto-index that gives investors exposure to a diversified basket of vetted digital assets through one single investment. The SCIFI index 1-1 backed with its underlying assets and has zero fees for investors.
$SCIFI is governed by a governance token called $SPICE. The SPICE DAO will have powers over the course of the project and will launch additional indices in the future, SCIFI is just the start. $SPICE will be available in a quite novel public sale mechanism on Uniswap “very soon.”
They have already performed an audit on their smart contracts and have put together an impressive team.
More background on SCIFI in their channels:
Homepage: http://scifi.finance/
Project intro: https://scifinance.medium.com/enter-scifi-598502184699
Public sale info: https://scifinance.medium.com/archived-the-big-bang-831ed0b54922
Telegram: https://t.me/sci_finance_trading
The U.S. Treasury Was Hacked
In addition to the Treasury, it was also the Commerce Department and other government agencies that were targeted by a group of Russian hackers. The breach was serious enough to bring in both the FBI and Homeland Security to investigate what many are now calling a “huge cyber espionage campaign targeting the US Government and its interests.” Bitcoiners were quick to point out that Bitcoin never has been hacked and can’t be hacked. The attack does prove the weakness of centralized systems with one single point of failure. But I’m pretty sure Bitcoin will never replace a government agency. Hopefully, what was meant was that Bitcoin’s decentralized principles are worth considering moving forward when it comes to security. As amazing as Bitcoin is, it is not a fix-all solution.
Michael Saylor Says MicroStrategy Isn't An Investment Company
Many have been perpetuating the fresh narrative that MicroStrategy has effectively become a de facto Bitcoin ETF rather than a business intelligence company. Michael Saylor denied these claims, citing clear legal definitions and precedent. Saylor is setting an example for other companies, showing that it is prudent to invest your treasury in Bitcoin without changing the identify of your company.
Jim Cramer (Finally) Buys Bitcoin
It took him long enough! He's been talking about it for months. The more Jim Cramer talks about crypto, the closer we will come to the top. Not that he is a bad trader or investor, it's just that his audience is composed primarily of retail traders who blindly follow his advice. Cramer bought the recent dip like a responsible investor and said he will continue to do so if the opportunities arise.
Chamath Palihapitiya Is A Bitcoin Bull!
The famous billionaire investor bought one million coins in 2013 with an average purchase price of $120. He intends to evangelize more aggressively, which is obviously a positive for the space. “I think it’s a hedge. I’ve always viewed it as a sort of schmuck insurance against orthodoxy... But I think in other countries it’s more than a hedge. I think it’s becoming a principal mechanism of value, storage, and exchange."
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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.