The Wolf Den #201 - NFTs Are Taxable (Of Course)
Bitcoin Thoughts And Analysis
DAILY CHART
Early in the day yesterday things were looking less bright. That's why we wait for the candle close. As you can see, yesterday's candle followed the previous hammer with another, larger hammer. This confirmed the bullishness of two days ago. The candles from the past 2 days both have long lower wicks and closed the session at the highs. Bullish. You love seeing price trading at the highest price of the day at the close - it means that buyers stepped in late in the session and continued to push price. You also love to see those long wicks down - they show that sellers failed to push price down. The combination of the two is great. Things can change, but for now this looks decidedly like consolidation for another push up.
HOURLY CHART
Zooming in for the scalpers out there, it's somewhat clear what is going on for the moment. Price broke the local range highs yesterday on strong volume and managed to trade above for quite a while. A retest of this area would be a nice indication that resistance has been flipped to support and that price is ready to continue up. Sometimes coming down lower to confirm support is actually bullish. I am not saying that will definitely happen, but if I was scalping this (I am NOT), I would be looking for an entry somewhere in the blue box that I drew, or with a break of the blue descending line.
I do not love how price is rounding here up top, so we could see a bit of a drop. Either way, things generally looking bullish.
Altcoin Charts
1INCH, ATOM and EGLD are all up - those are some of the trades that I have shared earlier in the week. Still, I am not seeing much to be excited about in the altcoin market for the moment.
ALGO/BTC
This is a fun idea, not tradable yet. We had a nice big move up and price appears to be rounding out at the top - forming a POTENTIAL cup and handle. To have a cup and handle, we would need to see some more consolidation in a bull flag or pennant here before a move up. Either way, the safest trade is a break of the top resistance and retest as support. The other entry would be the break of the bull flag, assuming one forms.
Here is more on the cup and handle pattern. Note, it is NOT A REVERSAL pattern, but only works as continuation.
Legacy Markets
F (FORD)
This is an update from earlier in the week - I filled bids on Ford just above support yesterday, but not a full position. I was a bit greedy and had some bids right on the line. As I always mention, entries are rarely perfect, so you usually want to spread bids out and make sure you have some above the line so that you don't get front run. I don't day trade stocks, so I am looking at this as a longer term position.
1.9T Stimulus - What Does It Mean?
I shared my thoughts on the 1.9T stimulus package and how it will effect the dollar and Bitcoin. If you have a few minutes, it's a quick but thorough summary.
Morgan Stanley Offers Bitcoin Funds
I pointed out in yesterday’s issue that the CEO of NYDIG, a major investment firm, said big announcements were coming for Bitcoin within a couple of weeks. Morgan Stanley was on the list of possible names for an announcement, and now a day later we are learning that Morgan Stanley is launching 3 Bitcoin funds for access to the price action of the asset.
This is a huge step in the right direction, but far from what true Bitcoiners want to see. The funds have huge investment minimums and caps on how much investors can buy in, only giving the wealthy access. Basically, Morgan Stanley is taking strong precautions to avoid the blowback of bad publicity if the investments go south. This is the first major bank that is allowing its advisors to recommend Bitcoin - a baby step, but meaningful progress.
Visa Is Continuing Its Crypto Journey
On a podcast earlier this week, Visa’s CEO Al Kelly gave some insight into the company’s plans for 2021. “We’re trying to do two things. One is enable the purchase of bitcoin on Visa credentials. And secondly, working with bitcoin wallets to allow the bitcoin to be translated into a fiat currency and therefore immediately be able to be used at any of the 70 million places around the world where Visa is accepted." The goal is to, “place the credit card giant in the middle of activity around new payments methods and technologies so that if they do catch on in the mainstream, Visa is able to capture the business opportunity.”
Visa is a giant, but they aren't figuring this out on their own. It’s been reported that Visa has over 35 players helping them navigate the crypto space. Their announcement hasn’t received as much attention as it deserves, because speculators are more concerned with what's new and shiny - like a company adding Bitcoin to the balance sheet. I believe it’s strong news like this that will truly bring us closer to mainstream adoption and long term price appreciation.
Grayscale Has 5 New Trusts
If you are a fan of Grayscale and their products, you will be excited to learn that Grayscale is adding trusts for Basic Attention Token, Chainlink, Decentraland, Filecoin, and Liverpeer. Grayscale said that 18 to 24 months ago, investors only cared about Bitcoin, but that interest has now changed dramatically.
When interviewed on the news, Grayscale said, “we really do a deep dive into these tokens, and the launch of these additional five products is just kind the beginning of the continued expansion of the product family.” Grayscale wouldn't have picked these assets if they weren’t bullish on them - they really want to see their products thrive. This is great confluence for investors who already have positions in these coins or are considering them.
Lepricon - Games, DeFi And Predictions
Lepricon is a brand new project that combines elements of DeFi, prediction markets and digital collectibles - NFTs. The community is comprised primarily of gamers and game developers, but also allows people to stake the coins providing liquidity and earning yield.
Lepricon is a DAO - an organization represented by rules enshrined in computer code that is transparent and controlled by the network participants and not by a central authority. To put it plainly - it is decentralized. Lepricon seeks to unlock and realize the potential of gaming and NFTs in blockchain by providing a platform for gamified DeFi dApps with a core focus on user experience.
They are at the intersection of a number of hot sectors and have a chance to do very well. The coin officially started trading yesterday, if you are interested. Here are the correct details.
The Wolf Of All Streets Podcast Ft. Anthony Di Iorio
Anthony Di Iorio first heard about Bitcoin in 2012 and immediately did two things - he bought Bitcoin and decided to become a key contributor to the emerging crypto sector. Di Iorio joined forces with Vitalik Buterin and 6 other co-founders and a year later Ethereum was born. Today, Anthony spends his time building crypto tools to empower newcomers to be their own bank.
In this episode, we discuss a range of topics including:
The dawn of the personal computing age
Buying Bitcoin in 2012
Developing crypto wallets
Co-founding Ethereum
Misaligned incentive structures
The degradation of society
Restoring a wallet with private keys
Working alongside Vitalik Buterin
The largest risk to crypto
Excitement around authenticity
Spending $0 on advertising
Dealing with investors
My Recommended Platforms And Tools
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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.