The Wolf Den #149 - Trade Gods With Bitcoin Jack Sparrow
Bitcoin Thoughts And Analysis
Nothing has changed from yesterday - at all. Price is basically the same as it was 24 hours ago.
4-HOUR CHART
The most important thing to note is that we have confirmed hidden bullish divergence on the 4-hour, which effectively "cancels" the bear div that printed previously. A hidden divergence signals likely continuation, so by that signal price should continue up. Hidden divs have been weak signals on Bitcoin, but are good for at least eliminating the fear of the previous divergence.
Bitcoin appears to be consolidating against resistance - usually leads to a pop to the upside. That said, there's no clear pattern here because of the large drop a few candles ago, so not particularly easy to trade this with confidence.
Altcoin Charts
BAND/BTC
This looks likely to have bottomed out, tapping the bottom of the grey daily demand zone. We have massive bullish divergence coming out of oversold RSI on this pair, which is encouraging. We need to see it continue up and avoid a hidden bearish divergence, which is not a concern for the moment. Now that it has traveled to oversold, the hope is that it will head up to overbought. A break of the blue line would be the real trade here, confirmation that the downtrend is broken. Above 25662 would be further confluence, since that is a key resistance.
EGLD/USDT
Incredible. After doing a 20x on ERD last year, this rebranded as EGLD and is once again showing that level of promise. I shared the rounding bottom setup here before, as well as more information on a rounding bottom. It is similar to a cup and handle... however, a cup and handle ONLY works as continuation, and a rounding bottom has no handle... it just moons.
Unfortunately, this setup did not wait for me to send the newsletter, because the plan was a retest of 29.8 as support. That has already happened, but I would still consider putting orders there in case this comes back down to support. Otherwise, this is now in price discovery for new highs.
INJ/BTC
This setup looked better a few hours ago when I cued it up, but is still valid. We have a rejection at the descending blue resistance and horizontal purple line, as well as the neckline of a potential inverse head and shoulders. That's all fine for now. I want to see this consolidate and break all three levels of resistance - descending blue line, purple line and ascending blue neckline of the IHS. If that happens, sky is the limit for this pair. I am waiting for a breakout and retest. There is no trade here yet.
Equos - An Institutional Grade Exchange For Everyone
I wrote a quick review of Equos exchange on the blog. As you may know, I had the opportunity to interview their CEO (of Diginex, the parent company) Richard Byworth and they sponsored my podcast a few months ago. They're an amazing company building top notch products, so I finally took the time to really dig in and share.
Banks Can Now Legally Interact With Stablecoins
The Office of the Comptroller of the Currency (OCC) published an interpretive letter clarifying national banks’ and federal savings associations’ authority to participate in independent node verification networks (INVN) and use stablecoins to conduct payment activities and other bank-permissible functions. What this means is that U.S. banks can use public blockchains and interact with stablecoins as long as they are compliant with existing laws. The letter went ahead and even outlined the advantages to banks, stating that stablecoins offer speed, efficiency, interoperability, and low fees. This recognition allows blockchain to finally enter into the walled garden of banks and compete with Swift, ACH, and other prominent banking services like FedWire.
Prior to this, stablecoins have been limited to grey area DeFi protocols, foreign countries, and banks that received special-purpose depository institution (SPDI) charters. This is amazing news for stablecoins and the crypto community as a whole, banks have now been given the green light to interact with stablecoins and even run nodes if they choose. We are currently entering a time where regulation is cracking down hard and fast on controversial projects like XRP, TRX, and many more I assume, while simultaneously finally opening the doors to compliant and noncontroversial cryptos and actors.
Tron May Be Facing A Class Action Complaint
Twitter user Adam Cochran, the insider crypto analyst who has previously reported early and accurate information about XRP is behind this Tron news. The lawsuit allegedly states that “within the Class Period, which is from June 26, 2017, through the present, TRON and individual defendants Justin Sun and Zhiqiang (Lucien) Chen (the “Individual Defendants”) promoted, offered, and sold TRON’s securities, called TRX tokens, throughout the United States, in violation of federal and state securities laws.” Furthermore, “TRON, were required to file registration statements with the U.S. Securities and Exchange Commission (“SEC”). TRON, however, failed to do so. By selling these unregistered tokens to investors, TRON reaped millions of dollars in profits.” In the short time the news went public on Twitter, Cochran received enough hate and threats to delete his entire thread about the situation. Justin Sun responded to the news stating that he is currently unaware of any lawsuits from either the U.S. or China. The news has remained very low key and the only public remnants are saved links and Justin Sun’s denial of any regulatory proceedings. TRX holders should proceed with extreme caution, knowing that there may currently be a lawsuit in the works that hasn’t caught mainstream attention. After taking the time to walk through the SEC’s reasoning as to why TRX is a security, I fear that a lot more than just a handful of cryptos fall into this category. This type of news as shown in the XRP case carries significant weight and influence and is pointing to something far bigger at play. The SEC has finally caught up, informed itself, and is poised to strike. This is really shaping up to be a cleansing of the crypto space in the United States.
One River Makes Huge Bitcoin Bet
Another huge bet by a legacy asset manager. We don't know the amount, but it's being reported as one of the largest ever. Coinbase is clearly at the center of institutional involvement, which is encouraging as we are seeing high buy volume and then seeing the coins moved off exchange. They are investments that are not on the market to be sold.
The Wolf Of All Streets Podcast Ft. Mike Dudas
Mike Dudas spent years helping major companies like Disney, Google, and Venmo with growth and business development. It was during his professional career that his interest in crypto began to grow. Mike recognized that the crypto space lacked an unbiased data, news, and information hub for retailers, businesses, startups, and hedge funds. After assembling a team of experts from around the crypto world, The Block was born and became arguably the best newsletter and data aggregator in the space. Now thousands of curious interdisciplinarians look to The Block for their expertise, guidance and analysis.
Mike and I further discuss, the need for unbiased research, simplifying crypto for the masses, the Bloomberg Terminal, governments as customers, fintech arriving to crypto, competing with PayPal, Facebook’s crypto product, who will be the next Michael Saylor, regulating stablecoins like banks, dumb regulation threatening crypto, burning and depreciating treasuries, the dollar as crypto’s reserve currency 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.