The Wolf Den #212 - Does Mining Use Too Much Energy?
Bitcoin Thoughts And Analysis
Bitcoin continues to do... nothing. The larger patterns and ideas are bullish and still intact. There is one thing that I noticed that is of slight concern, which is a confirmed bearish divergence with RSI on the 4 hour chart.
Notably, this is not overbought and we just had a hidden bull div right before it. So to me, this is more indecision than a top signal. I would imagine we will see another hidden bull div before too long, so I would not aggressively trade this. That said, it's worth watching and understanding that selling pressure is increasing a bit while price stagnates. I would not long right now, more accurately.
Altcoin Charts
The setups I have shared are doing well, and I am continuing to focus on those. ETH looks great still, DUSK, SOL, DOT, BNB EGLD etc - all doing well. Here is one more to watch.
RUNE/BTC
I took note of this setup in the live charting session on Wednesday, and missed the alarm going off! RUNE broke out of the trading range and made a new all time high, meaning that it has entered price discovery. Like any setup, there are no guarantees - I have seen plenty of these fall back into the range and below the previous highs. That said, from a charting perspective, this is a beautiful setup and most assets that make a new all time high continue, much like Bitcoin after 20K. I would be looking for a retest of the previous all time high, around the blue box. Remember, I prefer to spread orders out around the line - some above, some on the line, some below. The bulk I put slightly above to make sure I don't get front run. Targets are hard to determine - there's no price history above. Stops are up to you, but I would place them conservatively below the EQ of the range. You can be more aggressive and put them below the previous highs, with enough room to avoid a wick.
This setup may never hit - price could keep going up and you would "miss it." But who cares? There are plenty of other coins to look at.
5 Bullish Candlestick Patterns
I wrote this article a year and a half ago and shared it when I first put out the newsletter. I think it's a good time to share it again! Here are 5 Japanese candlestick patterns that every trader should know.
Taco Bell's Historic April Fools' Campaign
By Sahil Bloom:
On April 1, 1996, Taco Bell took out full page ads in six major newspapers to announce a transformative acquisition.
A thread on one of the greatest April Fools’ Day pranks (and viral marketing campaigns) of all time...
Taco Bell is a chain of fast food restaurants offering attractively-priced, Mexican-inspired foods.
It was founded by Glen Bell in Downey, California in 1962.
By 1996, it had thousands of locations around the world.
The organic growth was great, but the team had bigger plans.
Management got to work.
After planning in secret for several months, they prepared to make a big, splashy announcement.
On April 1, 1996, they were finally ready.
Taco Bell ran a full page ad in six major U.S. newspapers announcing a transformative acquisition.
“Taco Bell Buys The Liberty Bell”
The ad explained that, in an effort to help the national debt, Taco Bell had acquired the Liberty Bell.
It would be renamed The Taco Liberty Bell, but remain available for public viewing.
The news immediately caused an uproar.
Thousands of calls poured in to Taco Bell HQ, the National Park Service, and the Liberty Bell Center.
A National Park Service employee was quoted as saying, “ We were shocked. We had no idea this was happening.”
Aides for two U.S. Senators placed calls to understand the news.
While the news of the acquisition was fake - it was April Fools’ Day, after all! - the viral marketing engine it ignited was very real.
1,000+ media outlets covered the story, including The Today Show and Good Morning America.
It reached over 70 million Americans!
In the end, the April Fools’ Day prank cost Taco Bell ~$300K, but was estimated to have generated over $25 million in free publicity.
Sales at the chain spiked in the weeks that followed.
The Liberty Bell was safe and sound. Oh, and the national debt remained enormous.
The Taco Liberty Bell campaign goes down as one of the best April Fools’ Day pranks - and one of the more innovative viral marketing campaigns - in history.
Morgan Stanley Is Taking Bitcoin Seriously
When news first surfaced that Morgan Stanley would begin to offer Bitcoin to its wealthier clients, only 3 funds were approved and the allocation was undisclosed. Morgan Stanley is now allowing 12 of its funds to gain Bitcoin exposure through GBTC or through derivatives contracts. Furthermore, a filing with the SEC revealed that Bitcoin could comprise up to 25% of the total assets of each fund. The time to front-run institutions is decreasing each day.
Coinbase Will Have Its Direct Listing On April 14th
Rather than IPO, Coinbase is taking a more unorthodox approach to its listing and doing a direct listing. The direct offer means no new shares are created, and the sellers will only be previous shareholders. COIN shares will be listed on the Nasdaq, and are scheduled to be available on April 14th.
A direct listing offers a few advantages. First, it is much faster than an IPO. Coinbase has been hinting at going public for a while and with the crypto market doing well, they probably figured the sooner the better. Second, it does not dilute the shares that exist. Lastly, it is cheaper.
Coinbase made a profit of $322 million last year. They will likely report a huge first quarter this year due to Bitcoin’s parabolic rise. Despite the hate they receive, their decision to do a direct offer is indicative of the company's good health. They didn't need to raise money and they are ready to go.
The Best Crypto Twitter April Fools’ Joke... BitcoinLite
Charlie Lee, the founder of Litecoin probably pulled the best April Fools’ joke on Twitter yesterday, with the fake rebranding of Litecoin to “Bitcoin Lite.” To double down on the prank, Lee rebranded the Litecoin Foundation to the “BitcoinLite Foundation” to confuse anyone with the link he provided.
The site read, “Why, you ask? After thorough research and witnessing the amount of newcomers that were getting confused, buying Bitcoin Cash, Bitcoin SV, and Bitcoin Gold thinking they were the real Bitcoin, we saw an opportunity to gain new followers that we’d previously been missing.” - LOL
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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.