The Wolf Den #157 - The Case For Ethereum in 2021
Bitcoin Thoughts And Analysis
I am going to keep this very simple today. You saw the chart and idea that I shared yesterday in the newsletter. Here is the update.
I am NOT saying this has definitely bottomed. I am saying this is a great entry from a risk vs. reward standpoint, as we are retested the ascending triangle as support on both lines in the same spot. Easy to cut ties with this if we see candles closing below those lines, but this is a first retest of 2 supports which is technically a great place to attempt a long.
We knew that the green area would provide a ton of resistance, so this drop was quite easy to predict. Now we see how it reacts.
Altcoin Charts
Altcoins are showing a bit of promise against Bitcoin, setting up for a potentially decent weekend. BTC Dominance is dropping a bit and looks to be likely breaking support. Here are a few coins to watch.
BAND/BTC
I posted this idea last week, so it's likely you were already watching and caught this move. We never had a clean break and close above that blue line until today. Bonus is that it is also pushing through the key horizontal resistance at 25662. The "safest" entry here is a close above that black line and retest as support. I would personally put stops back below the blue line, or even the main support zone at the bottom.
REN/BTC
A subscriber asked me to chart this coin recently, and on the livestream I set an alarm on the blue line. If went off this AM. As you can see, price is breaking through resistance on increasing volume. A daily close above the blue line would be a strong signal that the downtrend is ending, even if we get another drop to retest the line. You can see that there has generally been a major increase in volume over the past couple of weeks as this coin has formed a bottom in a key support/demand zone. I think this should do very well. The even safer entry is above resistance at 1560, but I could definitely see starting a position on this coin in the present area.
Rose Blumkin - The American Dream
By Sahil Bloom:
One entrepreneur was raised in a tiny log cabin in Russia but went on to build an empire in the United States. Her amazing life is the embodiment of the American Dream. Who's up for a story?
Rose Gorelick was born in December 1893 in a small village in present-day Belarus. Rose and her seven siblings lived simply in a tiny log cabin home. Both of her parents worked - her father as a Rabbi and her mother at a small store - but they struggled to make ends meet.
To help the family get by, Rose began working in her mother's store starting at age 6. She took to the work immediately. By the time she was 16, she was a manager and had 6 men reporting to her. This would be the humble start of a long and illustrious career in retail.
In 1913, Rose met a man named Isadore Blumkin, a local shoe salesman. They fell in love and married. Rose Gorelick became Rose Blumkin, or Mrs. B, as she would famously come to be known years later. They may have lived out a calm life in Russia, but fate had other plans.
Russia entered what would become World War I in July 1914. To avoid being drafted into the Russian Army, Isadore Blumkin fled to the United States, leaving his young wife behind. 3 years later, Rose Blumkin sweet-talked a soldier at the Russian border and headed for America.
They reconnected in Iowa, but soon after moved to Omaha, Nebraska. Little did they know that Rose "Mrs. B" Blumkin would become a legend synonymous with the city in the years to come. When Mr. Blumkin opened a small clothing store, Rose was by his side, shaping its strategy.
But in 1937, near the end of the Great Depression, Rose Blumkin decided it was time to go into business for herself. She borrowed $500 from a brother and opened Nebraska Furniture Mart. Her model: undercut the competition and offer the absolute best prices to the customer.
The strategy slowly won over customers. Unsurprisingly, it did not make Rose many friends among her competitors. Many banded together, leveraging their collective influence on the major furniture suppliers to force them to stop selling to Nebraska Furniture Mart.
But the diminutive (she stood just 4'10") Mrs. B was a fighter. She managed to stay afloat, at one point selling every appliance and piece of furniture in their home. She drove to out-of-state suppliers to get product for her store. Mrs. B stuck to her customer-first mantra.
Saddled with Fair Trade lawsuits from her competitors due to her pricing strategy, she used them to her advantage. She took out ads in newspapers citing the lawsuits as proof of Nebraska Furniture Mart's rock bottom prices. It was a growth hack before growth hacking!
From there, it was off to the races. With her customer-centric model, Mrs. B slowly, methodically crushed the competition. By the 1980s, she had built the largest furniture retailer in the country. The growth then drew the attention of another Omaha legend - Warren Buffett.
In 1983, Buffett's Berkshire Hathaway struck a deal with Rose Blumkin to acquire Nebraska Furniture Mart for $60 million ($157 million today). The entire deal was done on one page and a handshake. With her relentless work ethic, Mrs. B had taken $500 and built an empire.
In the years that followed, Mrs. B would reluctantly retire in 1989 at age 95, but then change her mind and start a competitive furniture outlet across the street. Buffett was forced to acquire her new business in 1992, not wanting to compete against the legendary operator.
He later joked that he shouldn't have allowed her to retire without a non-compete agreement. Rose "Mrs. B" Blumkin passed away in 1998 at the age of 104. Up until her final days, she could be found buzzing around the floor of her stores, helping her customers.
Today, Nebraska Furniture Mart is believed to be worth over $1 billion. Warren Buffett remains a great fan of Rose "Mrs. B" Blumkin. In the 2013 Berkshire Hathaway shareholder letter, he stated, "If [aspiring managers] absorb Mrs. B's lessons, they need none from me."
So that was the amazing story of Rose Blumkin - the legendary Mrs. B. - a shining example of the American Dream.
Elrond Gold Is Now On Voyager!
Elrond Gold is doing a 100-day hypergrowth countdown, releasing new milestones each day to the crypto community. Yesterday, for day 10, they announced that Voyager now supports Elrond’s native token. I am particularly proud, because I made the introduction and helped facilitate the listing.
Below is a statement from my good friend Beniamin Mincu, Elrond’s CEO on the new listing - "The successful transition from traditional to decentralized finance will help our regulatory framework evolve in many positive ways. A publicly traded company built to simplify onboarding to the crypto space, is a powerful catalyst toward unlocking blockchain's multi-trillion-dollar potential. We're excited to work with Voyager towards compliant adoption at an internet-scale." Providing an asset with a new customer base is perhaps the most powerful tool to propel a cryptocurrency to long-term success.
DOT Momentarily Flips XRP Market Cap
Polkadot (DOT) momentarily surpassed Ripple (XRP) in total market cap, taking DOT from #5 to #4 for a short period of time. This move is further proof that popular 2017 altcoins may be slowly replaced by newer DeFi coins. Chainlink is another example of a coin working its way up the top 10, replacing popular 2017 coin Stellar (XLM) and gaining on Bitcoin Cash (BCH). There is no doubt that Bitcoin and Ethereum will sit atop the mountain, but anything below is prone to reshuffling in this bull run ,with the steam building behind the new and weakening behind the old.
Pakistan Is Mining
Another nation is committing governments funds to Bitcoin. It is only a matter of time before we start seeing countries holding it as a reserve asset in the Central Bank. Bullish.
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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.