The Wolf Den #232 - Japanese Candlesticks
Bitcoin Thoughts And Analysis
Bitcoin dropped a bit yesterday, no surprises after seeing it run into the strong resistance that I have been discussing for days. That said, it looks like it is consolidating for a potential attempt at another push up.
4-HOUR CHART
Price is pushing against descending resistance (blue) from the recent all time high. There is also a potential inverse head and shoulders, which would require a break of the black line on decent volume to confirm. Breaking the blue and black lines would be strong signs that Bitcoin is ready to head back up. You can also see that the last move bottomed perfectly at the 4 hour 50 MA.
This is an important area for Bitcoin to show strength and push through. For now there is still no immediate trade in my mind, but breaking all of this resistance would change that.
Altcoin Charts
EGLD/USDT
EGLD appears to be setting up for a bullish move, forming a small bull flag after the recent move up. A breakout from this flag would have a target of roughly $228 depending on where the breakout occurs, but I expect strong resistance in the blue supply zone shown around $212. The best way to trade this technically is to buy a break of the flag or wait until the break and try to catch a retest of the flag as support.
LTC/BTC
Quick reminder that LTC looks great on the BTC pair (USD as well). Just want to make sure this is on your radar, as LTC has historically followed ETH which also looks bullish. Break of descending resistance, retest and majorly increasing volume the past few weeks.
XLM/BTC
XLM is attempting a breakout of the resistance that has been in place since earlier this month. Depending on your risk tolerance, I have identified 2 areas that I would consider putting a stop loss, both shown by red boxes. The blue zone is local demand before this recent move up, so it should technically hold as support. The first red box offers enough room for a wick through this without getting stopped out (hopefully). Really I do not want to see this trading back below the descending line, so you may want to wait for this breakout to be confirmed to buy or place bids for a retest as support. That is the "safest" entry. The target is the line at the top, the recent highs. Flipping that to support would give us much more promise of higher prices, which we can revisit if it happens.
5 Bearish Candlestick Patterns
I wrote this piece in 2019 for CoinTelegraph. The good news is, Japanese candlesticks have not change since then! These are 5 important patterns to be able to identify and trade. Read above.
SEC Delays Decision On VanEck Bitcoin ETF
The SEC acknowledged the VanEck ETF back in the middle of March which set up their 45-day timer to either approve, reject, or delay a decision. In typical SEC fashion, they delayed their decision on the application for “sufficient time for consideration.” This move was expected considering Gensler’s arrival just this month and the SEC’s history of delaying the decision as long as possible which has historically culminated in a rejection. The positive news is that nothing about the SEC’s decision to delay indicates fault with the proposal, rather it is likely just the SEC continuing to take its time before approving a Bitcoin ETF.
Coinbase Users Can Buy Crypto With PayPal
A bit confusing, but positive news. Both companies already allow crypto purchases. The difference between the two is that, as of now, purchasing crypto through PayPal means you do not have the ability to remove coins from the platform. The news means that PayPal users can now link their accounts to Coinbase to buy and own crypto.
If PayPal transitions their model to allow self-custody, they will then be directly in competition with Coinbase, but neither company seems to care. At the end of the day, it’s to everyone's benefit for innovative companies to work together. Similar news to this should continue as Visa and Mastercard begin to offer their own products and integrate with near-identical business models. In other news related to PayPal, Ethereum’s market capitalization is now bigger than PayPal’s, a financial giant that has been around since 1998 - Ethereum since just 2015.
You Can Be In The Top 10% Of Bitcoin Holders
If you own just .1 Bitcoin, you are currently in the top 10% of Bitcoin holders in the world. According to the Bitcoin Rich List, 91.65% of all Bitcoin addresses own less than .01 Bitcoin. That means that owning over .1 will put you between the top 8th-9th percentile. This is an achievable goal while prices are still reasonable - get on it!
NAOS Finance - Permissionless Lending
DeFi often sounds too good to be true, it can feel utopian and counterintuitive to the legacy systems we have grown to use and trust. But the reality is that financial services are primed for rapid and transformative change. There will be a new world of friction-less finance where global supply/demand of capital and assets are managed in perfect equilibrium. NAOS Finance is founded with the mission to accelerate the process of reaching this utopian state of finance.
NAOS Finance is an interoperable marketplace for loans backed by offline income streams. They aspire to bridge the multi-trillion dollar global credit gap by allowing lenders and borrowers to interact in a permissionless manner. Their protocol, built on the Ethereum blockchain and Interplanetary File System (IPFS), automates the tokenization of real-world assets and the end-to-end lending process.
The time for centralized and permissioned innovation is over. DeFi applications such as NAOS are gaining momentum and are bringing the financial lending world back to its original intended state — permissionless, open and decentralized. In short, the team at NAOS Finance is building a real-world asset-based ecosystem that will enable other DeFi projects to build applications and derivatives with them.
I often mention how complex and difficult DeFi can be, but the entire NAOS project presents itself very clearly. They understand their role and what they are trying to accomplish, plus reading their content is like reading a well-written story. If you enjoyed the review, you can read more about them with the links provided. Their IDO is today.
Website : https://naos.finance/
Tokenomics: https://naosfin.medium.com/naos-finance-community-newsletter-tokenomics-a0caadfb26ce
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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.