The Wolf Den #229 - Tesla Sells (A Little)
Bitcoin Thoughts And Analysis
Bitcoin has continued to show signs of strength on this bounce. Encouraging, but we are not out of the woods yet.
DAILY CHART
As I have stated a few times, the supply zone and 50 MA above are classic short opportunities for traders. This will likely be an area of strong resistance and at least a place to expect some retracement or consolidation. That said, we rarely get what we expect, so I would not be surprised to see price blast through, especially if we see some companies announce Bitcoin holdings in the next few days during quarterly earnings.
Yesterday's daily candle was massive, effectively engulfing the 4 previous bearish candles. That is a strong reversal signal.
As I often discuss, a 50% reactive bounce is normal in a down trend, so I really want to see price above that level. Then the golden pocket is usually a challenge, between 61.8% and 65%.
Lots of resistance ahead, but we are approaching it on strength.
Altcoin Charts
DOT/BTC
Recent idea updated. As you can see, it held the support area that I circled and should be headed up to the next level. Easy setup. Stops below the recent lows.
FTT/BTC
This just made a new all time high and appears to be headed into price discovery once again. Assuming it closes above the line, the best way to play this is to spread bids around the all time high for a test as support. It may continue up and not fill, it happens. But this is the "safest" play.
Exchange coins are booming and you don't want to bet against Sam Bankman-Fried! This feels like a longer term hold.
LTC (BTC AND USD)
I looked at this on the livestream yesterday and it is very simply. Break of descending resistance, successful retest as support. Tons of volume the past few weeks. This should be ready to head up, with an eventual target of .007976 sats, at the top of the descending line.
The USD pair is at resistance, but looks ready to break through. I would wait for that break and even a retest. You can see the idea I shared on the livestream yesterday, with a target of $370. Here is a closer look.
Dave Portnoy Owns 1 Bitcoin
At this point, Bitcoin’s relevance and price action have absolutely nothing to do with Dave Portnoy, the founder of Barstool Sports, but it's nice to have him back. Hopefully, this time he sticks around or doubles down so we can enjoy his hilarious commentary.
Bitcoin Outflows Continue Despite Correction
Even during last week’s dip, Bitcoin exchange outflows hit a record high of $21M. To add to that number, inflows hit a record low of just $1.3M in the same week. The record level of outflows go hand in hand with Bitcoin’s drop in dominance. Some of the Bitcoin being removed is then being swapped directly for altcoins. Ethereum saw massive inflows of buyers, with people loading up on the asset for EIP 1559, resulting in decreased bitcoin dominance over the past couple of weeks. All of this is bullish; the numbers will continue to flip-flop, but the takeaway is simple - people want crypto and are breaking records almost every week just by participating.
Heavy Demand For Crypto Service On PayPal
PayPal is seeing insane demand for their crypto services, outpacing the companies most aggressive projections. No surprises here, but still nice to see confirmation of mainstream adoption in real time.
Rumor - Facebook Holds Bitcoin
Rumors are swirling that Facebook has been buying Bitcoin and will reveal this fact in their quarterly earnings report when trading closes tomorrow. This is purely speculation, but would obviously be massively bullish and likely move price significantly, based on the way we have seen Bitcoin react to past news of corporations buying Bitcoin. Nothing here yet, but keeping an eye on it.
The Wolf Of All Streets Podcast Ft. Jon Najarian
Jon Najarian left the coveted life of a professional football player to become a “nobody” in the trading pits, upheaving his world in an instant. Bit by bit, Najarian pushed through the tough challenges of the trading floor that molded him into a master of all markets. Recognizing crypto’s value proposition, he more recently shifted his focus to become an investor, trader, and commentator within this new market. Crypto is causing widespread concern among legacy investors, he believes, causing a slow but steady shift to a new age of scarce value.
Follow Jon Najarian: https://twitter.com/jonnajarian
In this episode, we discuss a range of topics including:
Dominating Chicago football
Options, calls, puts, and strikes
Overleveraged speculators
Learning to trade in the pits
$10B flushed in 4 hours
Wash sales and artificial pumps
The Doge day sell signal
Million-dollar baseball cards
Bill Ackman and Carl Icahn
The smell of fear on the trading floor
The intrinsic value of dollars
Market Rebellion
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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.