The Wolf Den #136 - Trade Gods
Bitcoin Thoughts And Analysis
Bitcoin continues to look strong, consolidating below the all time high. This usually leads to expansion above, but nothing is guaranteed. Little has changed on the chart since yesterday.
The only new thing I have to share, which is not particularly compelling, is the slight hidden bullish divergence that we had here on the 4 hour chart after the small dip. That should signal continuation, but has been a weak signal in the past.
Altcoin Charts
Altcoins do not look great to me today. Bitcoin Dominance continues to push up, so I am sticking with the same opportunities discussed before. I did notice a nice pattern on LINK yesterday and took a 10x long on Phemex. I will share that chart below.
EGLD/BTC
This is more of an update than a trade. I am assuming most of you have been in this for a while, since the first setup was the bullish divergence at the bottom. It has pulled a 3x since, almost. If I was looking to trade this now, I would be hoping for a pull back to around .001. RSI is extremely overbought right now, so eventually we should see some healthy retracement. The path I would love to see is drawn, but definitely will not happen in that manner.
EGLD/USDT
I talked about the rounding bottom on this pair last week. What a lesson that turned out to be. As you can see, price continued up as it should, not stopping to consolidate like you would see in a cup and handle (in continuation). This has done almost a 2x since posted.
This is a perfect rounding bottom, really epic. This is effectively in price discovery on the USDT pair, so it's hard to discern targets. I can only say that dips appear to be for buying on this pair. I have no intention of selling yet.
LINK/USDT
I took a long yesterday around $12.6, which is currently slightly under water.
As you can see, price broke the major descending resistance and is now consolidating in a pennant. As you know, pennant support often fails and creates a flag, or descending channel. I am basically playing this for now between the demand zone below and the supply zone above. My stop are below $12 and below the demand zone that is shown. The first target is the blue box above (supply) and then the black lines if it continues.
JPMorgan Sees $600B In New Incoming Bitcoin Demand
Last week I covered MassMutual, the American life insurance company purchasing $100 worth of Bitcoin for a total of .04% of their investment portfolio. This is clearly just the tip of the iceberg of the money that JPMorgan is expecting to flow into the crypto space. According to JPMorgan in a research note, if family offices, pension funds, and insurance companies allocate just 1% of their portfolio to Bitcoin, that would equate to roughly .6 trillion dollars. This prediction is extremely conservative because it fails to account for hedge funds and companies beyond insurance. If .6 trillion were to be added to Bitcoin, its market cap would surpass 1 trillion and the price would sit around $50,000. In the grand scheme of things, if Bitcoin really catches steam, institutions will probably allocate a lot more than 1% to it.
Famous People Changing Their Minds On Bitcoin
2020 is like an Uno reversal card and Bitcoin proponents are no exception. One Reddit user went ahead and compiled quotes from notable people who have flipped their stance on Bitcoin. My personal favorite on the list is Jamie Dimon saying, “Bitcoin is a fraud that will ultimately blow up.” This was just 3 years ago from the CEO of JPMorgan who now can't stop talking about Bitcoin. All of us reading this letter will have close friends and family that change their mind on crypto sooner or later. We can either welcome them with open arms or have a good laugh at their expense. I plan to do my small part and do what is best for adoption - smile and give them a huge and show them how to buy Bitcoin.
CBDCs Will Have A Positive Impact On Crypto
If you are looking to learn more about CBDCs and the role they will play alongside crypto, the article linked above is a great start. According to the article and my own beliefs, CBDCs are inevitable. Furthermore, the article argues that CBDCs are a road to a new economy, one that enhances Bitcoin along the way. CBDCs will help bank the unbanked, offer real-time insights into macroeconomic conditions, combat fraud and create instant, seamless transactions. CBDCs are widely debated and there are distinct drawbacks, but if there is a digital dollar, I can't help but think that it will bring more eyes and legitimacy to Bitcoin.
The Wolf Of All Streets Podcast Ft. Memli Krasniqi
Memli Krasniqi helped build a nation from scratch, something that few living people can claim to have accomplished. As one of the founding fathers of Kosovo, Memli has participated in every aspect of nation building, from penning the Constitution to building infrastructure and conceiving the very core institutions of government. He was also a famous rapper! His life is worthy of a Hollywood Blockbuster, and his passion for Bitcoin is central to his beliefs about what the nation of Kosovo should ideally be.
Memli and I further discuss 90’s rappers, discovering Bitcoin in 2013, rapping anti-establishment music, living through apartheid, 100,000s of thousands of displaced people, Kosovo becoming free in 2008, becoming the Vice-President of the Democratic Party of Kosovo, signing the declaration of independence, rebuilding a country from the ground up, shaping government around the ideals of Bitcoin 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.