The Wolf Den #191 - Are You Undercapitalized?
Bitcoin Thoughts And Analysis
Bitcoin has turned into an epic chop fest, very difficult to trade and not particularly entertaining to watch. Not much to update from the charts yesterday. Price was rejected at the daily level that I showed and at the golden pocket - right around the 61.8% fib. Now it seems to be playing between the 61.8% and 38.2% levels, which is normal.
For the moment, this looks like a nice retest of that resistance as support, the 38.2% Fibonacci retracement, and the top of the descending channel. Let's hope that all of those hold and that price heads back up. Ultimately, we need to break through the 61.8% Fib area now and hold above it... we did not even manage to hold above the 50% thus far.
I have low conviction in any move at the moment. Sideways chop here.
Zooming in, we do have higher highs and lows confirmed, a bullish market structure since the bottom. The most recent higher low would be confirmed by making another higher high, but for now looks decent. I will be watching.
Altcoin Charts
EGLD/BTC
Nice break out from bullish consolidation. Now we need to see it flip this local resistance to support. For now, this is AT RESISTANCE and not a buy. Sometimes you need to buy a bit higher on confirmation. If it drops, I like the demand zone drawn below for a likely bounce. This should target the recent highs at the top of the purple line - we can reassess from there.
EGLD/USDT
I shared this on the livestream yesterday, and then on twitter. This has been a really nice move by Elrond, breaking first through the descending purple line, then the symmetrical triangle. Now it's at local resistance, so if you missed it before, we want to see candles closing above $151.95 and ideally a retest as support. If that happens, this should be heading back to the recent highs and more.
HXRO/USD
HXRO continues to look strong during the BTC correction. You can see the trade below on the bull flag, and I have shared countless other trades on this pair on the way up. It appears to be consolidating bullishly once again. The trade here would be a clean break of the purple line on decent volume. Note, everyone is talking about the success of "Sam" coins, those being coins affiliated with SBF of FTX. HXRO did a partnership with FTX, so this qualifies.
Chart Requests
Here is your chart request video from yesterday!
$AAVE $ADA $ALPHA $BAND $BTC $CRO $DOT $DUCK $EGLD $EOS $ICX USD $LINA $LUNA $LYXE $MANA $ORN $OXT $POLS $SPICE $STORMX $SXP $VALUE $XRT $YFL
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NFT Sales Are On Fire, Newcomers Beware
If you are unfamiliar with the NFT market and are looking to jump in, now is the time to be cautious and careful. Savvy resellers are taking advantage of the craze and making absurd amounts of money off single tokens. Just days ago, Mike Winkelmann, better known as Beeple, sold some NFTs from The 5000 Days Select project for just $1. Lucky raffle winners turned around and resold the NFTs so far at an average of $90,000 and rising.
It should be obvious, but not every NFT on the market will have this kind of staying power or resale value. Many investors are signaling early warnings to be careful in the market because hype and price appear to be outpacing true value. There is a lot of money to be made around NFTs right now, but if you don't know what you’re doing it’s best to sit back and study what is going on rather than losing money. We saw how 2017 went and the ICO boom as well - don't be fooled that this time is different, pick your battles and invest wisely.
Goldman Sachs Is Also Exploring A Bitcoin ETF
2 days ago, I covered the well-known fact that big players have arrived in the crypto space. Goldman Sachs officially returned into the ring to offer their own futures trading desk to compete with CME, CBOE, Fidelity, etc. I forgot to mention that along with Bitcoin futures, Goldman is also reportedly, “exploring the potential for a bitcoin exchange traded fund and has issued a request for information to explore digital asset custody.”
It amazes me that the U.S. approves of 3x leveraged ETFs in highly speculative sectors but still has yet to approve a Bitcoin ETF. They can't be delusional enough to actually believe it is too risky. More than likely, Bitcoin is terrifying to the people in charge who are used to the “old way of doing things.” It won’t be long until an ETF is finally approved and the “old way of doing things” is buried alive.
Cathie Wood Is Bullish On Bitcoin
Cathie Wood, the founder, and CIO of Ark Investments, has gained a lot of respect the past year in the traditional finance sector with the success of her firm. Her Ark Innovation fund was up 136% last year, when many hedge funds struggled to survive. Shares of her company are up a staggering 345% in 12 months. Rather than play it cool, Cathie has publicly said she believes, “the price of bitcoin will keep rising as more U.S. companies diversify cash holdings and add the cryptocurrency to their balance sheets. Should other U.S. companies follow suit, the price of bitcoin could increase by between $40,000 and $400,000.” What's special about her prediction is that the average of her range is spot on for the average of other popular models, about $220,000. If she nails Bitcoin, she will go down as one of the greats who succeeded in the legacy market and then in the emerging crypto market.
The Wolf Of All Streets Podcast Ft. Ben Askren
Ben Askren grew up on a wrestling mat where he discovered a unique style to defeat his opponent, called “The Funk.” It is this funky nature that eventually led Ben down a path to early Bitcoin adoption. Living up to his name, Ben has just recently agreed to return to the combat sports arena to defeat Jake Paul in a prizefight boxing match, reliving his championship days.
In this episode, Ben and I discuss a range of topics including:
Training for Jake Paul
Earning the nickname Ben “Funky” Askren
Learning to take profits
Diversifying out of crypto
Emotionally trading altcoins
Celebrity crypto boxing
The Funky Crypto Podcast
A potential 80% Bitcoin drop
10x in altcoin positions
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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.