The Wolf Den #218 - Global Wealth Inequality Is Increasing
Bitcoin Thoughts And Analysis
We have seen bloody Monday's often in the past few months. For now, Bitcoin looks decent, but there are some signs that we could see a potential correction in the short term. I am not saying this WILL happen, I just think it's important to be aware of the possibility.
WEEKLY CHART
Bitcoin just had its highest weekly close in history. Hard to be overly bearish when you see that happen! The highest close before was $58,972. This is also the first close over $60,000. When you zoom out, Bitcoin continues to look very strong.
DAILY CHART
Bitcoin is approaching resistance at the recent all time high and top of the range. We saw the beautiful bounce at the range EQ, but now seem to be stalling a bit. As you can see, when price has approached the highs, we have seen wicks up on almost every candle. I circled the previous price action before the last drop and the last couple of days. Today is obviously not closed yet. There is minimal volume here, so we need to see bulls really kick it into higher gear to break those highs. The great trade was at the EQ, now I think we need to wait and see it break through the highs on strength before looking to buy again. The good news is, the circle on the left was at a lower price - we have now pushed above that supply and into a higher area.
Nothing overtly bullish, just hard to buy right ahead of this resistance as a trader.
4-HOUR CHART
This is why I am cautious in the short term. We have confirmed bearish divergence, although once again it failed to reach overbought first. Any drop here would likely make a hidden bullish divergence, but this bear div is presently valid. This usually signals at least a local top. I hope that it becomes invalidated quickly, which I really believe it will if price even drops a bit.
Remain vigilant. If Bitcoin drops here, alts will likely go with it.
Altcoin Charts
Altcoins have been incredible of late. BNB hit the $600 target over night that I shared a few times and a number of the coins posted here have done well. That said, I am actually proceeding with caution today, as I see some bear divs across the market and am already seeing quite a bit of retracement on alts. Bloody Mondays have been a bit of a thing of late, as I have shown before - we often see the weekly lows put in on Monday over the past few months. I scanned a LOT of charts this morning, and it's hard to find any immediate setups.
TRX/BTC
This is the only setup that I found that is still interesting, and it is exactly the same as last week. The first TRX move was a sign that larger cap coins were about to go up, and this has now been consolidating against this resistance for two weeks. This is likely to develop VERY slowly, because it's a weekly chart, so keep that in mind when deciding what size position to take and where to put your stops. For me, a smaller position with tons of breathing room and a long time horizon seems most logical.
Stay Sane While Trading
I was featured in a CoinDesk article last August on how to “Stay Sane While Trading Crypto.” I wanted to share it again, because I believe these 15 tips are essential. Bitcoin has been ranging for almost 3 months now, creating some amazing opportunities to trade alts.
Trading is both demanding and draining. If you’ve been grinding through trades, I highly suggest you step back and consider some of the advice I laid out in the article. If you have been very successful, it's time to start planning for how you can maintain your presence in the game to avoid burnout. This article is a great place to start.
Ethereum Has Major Upgrades On The Way
The next few months are pivotal for Ethereum’s transition to 2.0 because of 2 major upgrades, the Berlin and London Hard Forks. Major upgrades are nothing to sweat over. OG hodlers may recall Byzantine, Constantinople, and Spurious Dragons to name a few. Upgrades are common. Typically, these forks are supported with consensus amongst the community, but it is possible that a new coin can result when mining power splits off and supports an old chain.
You have probably heard that Ethereum gas fees are very high due to congestion in the network. Furthermore, EIP-1559 is threatening the revenue miners earn by restructuring the network fees. Rumblings have begun in the Ethereum community, with some members hinting at the possibility of a split in the chain and a new additional coin resulting, similar to what happened with Ethereum Classic.
This possibility is still purely conjecture, as the fork is not slated to occur until the summer, with a lot that still has to develop and unfold before the possibility of a chain split. I will continue to dive deeper to keep you all informed and will be looking for a guest on the podcast that is an expert to better explain the situation. If it does turn out that Ethereum hodlers will receive a new coin, I expect it to be bullish for the price.
Elrond Holders Are Receiving $MEX
I have been championing both the $EGLD token when it was just $ERD and also the Elrond network since I first learned about them last year. If you have been with me on this wild ride and still hold your $EGLD tokens (which has been immensely profitable) you are entitled to Elrond’s new $MEX token.
The Maiar exchange token will go hand in hand with Elrond’s newest and most important announcement to this day - the Maiar Exchange. Acting as a governance token, $MEX will be “the first token of the Elrond ecosystem, with a fair launch, 100% distributed and owned by the community.” Below are some of the most important takeaways from the official announcement that I wanted you to know.
-There will be a total of 1 Billion MEX tokens
-The first snapshot of $EGLD will begin on Monday, the 19th of April
-$MEX is not an airdrop, it is a governance token
-Hold your $EGLD on Maiar app or official Elrond Wallet only!
-For $EGLD holders, there is a weekly distribution based on daily random snapshots for 1 year
-The snapshots for the first 4 weeks will each have 5x, 4x, 3x and 2x weight compared to all the other weekly snapshots (be ready on time!)
-The Maiar Exchange is targeted to go live as a web version on the 30th of April
There is a lot of information to take in, so I linked the official blog, DeFi For The Next Billion by Beniamin Mincu, the CEO of Elrond. Beniamin has been featured on both the podcast and live stream, where he has explicitly shared his goal to bring a billion people into the Elrond ecosystem - this is that first major step. If you are preparing to claim your $MEX tokens, click what I linked for more specifics on the distribution. I have been bullish on Elrond since their inception and haven’t changed my thoughts on them nor sold my position. It’s really an exciting time to be in crypto and own some $EGLD.
MicroStrategy Paying Directors In BTC
MicroStrategy board directors will now be paid in Bitcoin, CEO Michael Saylor said in a tweet today.
The 5 directors of MicroStrategy, including Michael Saylor, are now being paid in BTC. That's it, that's the news and it's amazing. Saylor is a gigachad of epic proportions and is not wavering on his support of Bitcoin.
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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.