The Wolf Den #189 - Goldman Sachs Is Back
Bitcoin Thoughts And Analysis
Bitcoin appears to be consolidating below 50K after being rejected on the first attempt to break. Yesterday's daily candle was beautiful, so that's very positive. I was very confident in the recent 43K bottom. Now I believe we are at a critical juncture and need to watch and wait to see whether it makes a hard move up or down. My bias remains up.
12-HOUR CHART
This is not of major concern to me, but we do have potentially a slight hidden bearish divergence with RSI on the 12 hour and down. This is not confirmed yet, but would in about 30 minutes if we don't see some movement up. The lower time frames are over longer periods and are less convincing, and the daily is clean. Still, always worth noting, as a hidden bear div would signal potential continuation to the downside.
4-HOUR CHART
We had the nice breakout of the descending wedge on increasing volume and are currently trading below a zone I have marked out as a potential resistance to support flip. All good news.
That said, if we pull Fibonacci levels for the entire drop from 58K to 43K, price is still trading below the 50% retracement level. I have mentioned a number of times that this is normal even if price is going to continue down, so I want to see stronger movement above that area ($50,600 or so) to convince me that the correction is over.
Altcoin Charts
COMP and BNB both made really nice moves yesterday on the setup that were shared. POLK is up as well. Encouraging for altcoins.
ETH/BTC
ETH looks like it is attempting to break through the large purple resistance on the 4 hour chart. We want to see volume come in and a larger candle to confirm the breakout, rather than a weak move sideways, although that still "counts." If ETH can breakout here against BTC, it could signal good news across the board for altcoins. I will be keeping my eye on this, but ETH currently looks good on both pairs.
LINA/BTC
This is an update on an older setup that finally popped up a few candles ago. As you can see, there was major volume coming in on the move up and the ultimate rejection at the top. That said, if you were looking for an entry, price has broken resistance at 16016 and is hovering right above it as support. This could be a resistance to support flip and a nice entry for another move up.
The red box below is the general area where I would personally place my stop losses if I entered this trade - comfortable below the next support in case of a wick. Maybe even a lower, depending on your risk tolerance.
Trading Tip, Try Linear Finance
Traders! Gas fees have been high, and I am always on the hunt to execute trades at minimal costs. I have been trying a few new platforms to ween myself away from Uniswap. If you are trading in synthetic assets you should check out Linear Finance. The platform is a faster, cheaper, safer, and easier-to-use alternative compared to other synthetic asset protocols. Previous synthetic exchanges I have used are slow, incredibly difficult to use, saddled with high transaction costs, and generally unappealing. Linear Finance is a major improvement. Also available on the platform is staking and market-making. There has been a lot of transparency on their end so you can avoid being front-run in your trades. I linked their platform above.
I have also randomly shared their chart a few times, including above in the altcoin trades.
Citibank Comments On Bitcoin
A research note was released from Citibank about Bitcoin. Some of the main highlights are quotes below.
“Bitcoin is at a tipping point and could become the currency of choice for global trade.”
“Bitcoin’s future is thus still uncertain, but developments in the near term are likely to prove decisive as the currency balances at the tipping point of mainstream acceptance or a speculative implosion.”
“The entrance of institutional investors has sparked confidence in cryptocurrency but there are still persistent issues that could limit widespread adoption.”
“For institutional investors, these include concerns over capital efficiency, insurance and custody, security, and ESG considerations from Bitcoin mining. Security issues with cryptocurrency do occur, but when compared to traditional payments, it performs better.”
21st Century Banking Is Dead
In the last major sell-off, $4.5 billion in Bitcoin was moved for a $21 fee. Nowhere else in the world can something valued in the billions be moved for that cheap. Gold is too heavy, paintings are too fragile, and money faces way too many barriers. The massive move was just an exchange moving money around internally, but still impressive knowing that the money could be sent anywhere in the world for just $21.
Interestingly, the Bitcoin was sent to an exchange exactly at the top of the recent run-up to just over $58,000, causing speculators to believe it was on its way to being sold. It was never actually sold, but likely the first catalyst for the last major correction, probably a sign that a correction was overdue and the market was looking for a strong enough excuse to sell behind. Traditional finance does not stand a chance against what crypto has to offer.
The Wolf Of All Streets Podcast Ft. Camila Russo
After discovering Bitcoin as a finance journalist in a developing country, Camila Russo became hooked on the idea of a decentralized financial revolution. Taking one step further, Camila honed in on Ethereum’s evolving role as the foundation for the internet of money, publishing “The Infinite Machine.” Today, her insight is called upon by experts from all corners of the crypto sector looking to understand how DeFi is revolutionizing the world of finance.
In this episode, Cami and I discuss a range of topics including:
Ethereum’s 2.0 transition
Competition and “Ethereum killers”
The first-mover advantage
NFTs as a crypto gateway
The Bloomberg of DeFi
Internet in the 1990s
Ridiculous gas fees
The “sure bet” in crypto
Whales trading Ethereum
The inevitability of bubbles
Bitcoin as digital gold
The basics of DeFi
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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. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.