The Wolf Den #215 - Coinbase Crushes Earnings
We normally have analysis from IntoTheBlock on Wednesdays, but they were unable to send it through today. We will hopefully include that tomorrow!
Bitcoin Thoughts And Analysis
4-HOUR CHART
Finally, a. bit of volatility. Just when everyone was getting complacent and also exuberant about alts, Bitcoin made a move out of the range. Unfortunately, this move was to the downside, but not really a big deal. As you can see, price bounced right out of a predictable demand zone and off of the 200 MA on the 4-hour chart. There are hours left until the candle close, so too early to judge, but for now we have tweezer bottoms and a beautiful potential bullish hammer, with a long wick down and nice grey body.
On the flip side, a break down of the range is a shorting opportunity on the retest. I have 0 interest in shorting Bitcoin, but scalpers may be looking to short a bounce up to the bottom of the range, if they did not short the breakdown.
But, be careful because....
The drop just made a perfect descending channel or bull flag. Technically you want to see alternating touches up and down, which this does not have, but we do have two PERFECT touches to the top and two to the bottom. There's a ton of price action around the equilibrium (the EQ, center dashed line) which confirms the validity of the channel. If I had to guess, I think this drop is done and it was a shakeout. But that's just a guess!
Also....
DAILY CHART
We have a larger range in play and price bounced almost perfectly from the EQ. If it loses that dashed line, the next real support is the range lows. So if we continue down around $50,300. For now, the EQ should theoretically hold, meaning a trip back to the range highs.
Altcoin Charts
A little correction today, not particularly worried. Not going to share many setups until we see what BTC does.
Solana has continued up and offered an entry from the setup. Matic dropped a bit but still looks fine for the moment. BNB looks amazing and gave another perfect entry on the BTC pair at the range highs. Revisit yesterday's setups.
LTC/USD
If the market bounces here, I REALLY like Litecoin. It was depressed for long enough and has broken out of a bull pennant that looks a lot like ETH did before it's large move. Also, we have two perfect retests of the former resistance as support. My target for LTC is around $345.
Legacy Markets
DXY (DOLLAR INDEX)
Won't the real USD please stand up, please stand up, please stand up.
That bullishness did not last long! The dollar is now dumping again like an illiquid altcoin and has broken support. I remain bearish, which is good for stocks, metals and BTC.
XRP Gains The Upper Hand In Ongoing SEC Lawsuit
In the SEC vs. Ripple case, a judge's order has deemed the SEC’s internal discussion of crypto and XRP as discoverable. This means the Ripple team is able to go through the produced documents to look for contradictions in the SEC’s classification of XRP as a security. Basically, Ripple has earned an inside look at the SEC’s developed argument to make sure their claims are genuine and sound. If either of those criteria is deemed unsatisfactory, Ripple is likely to come out on top.
Of course, the SEC wasn't happy about this ruling and responded by saying, “the actions of the promoter are what need to be the focus here,” meaning Ripple should only be answering for their actions, not scrutinizing internal work. It’s too early to call this a win for either side, but price literally and figuratively seems to appreciate this news. Concern over XRP being a security has been one of the longstanding issues surrounding the asset and entire crypto space. Right now we are seeing that even the slightest lift of “the security label” carries a very positive impact.
CZ Is A GigaChad
CZ, CEO of Binance, has effectively 100% of his net worth (billions) in crypto.
“I would say probably close to 100%. I don’t own any fiat. The physical stuff that I own is probably negligible in terms of my net worth. So, this is a concept shift. I’m not using crypto to buy fiat; I’m not using crypto to buy houses. I just want to keep crypto. And I don’t plan to convert my crypto into cash in the future.”
Talk about conviction.
Jamie Dimon Thinks US Economy Is About To Pump
"The leader of America’s biggest bank said the U.S. economy is emerging from the coronavirus pandemic into a boom that could last until 2023.
In his annual letter to shareholders Wednesday, JPMorgan Chase & Co. Chief Executive Jamie Dimon said strong consumer savings, expanded vaccine distribution and the Biden administration’s proposed $2.3 trillion infrastructure plan could lead to an economic “Goldilocks moment”—fast, sustained growth alongside inflation and interest rates that drift slowly upward."
He could be right.
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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.