The Wolf Den #234 - Step Back
Bitcoin Thoughts And Analysis
4-HOUR CHART
Another 1.4B in leveraged longs were liquidated on yesterday's small drop, which is mind blowing considering it was barely a meaningful move. People are over leveraged, attempting to trade meaningless chop. It will be hard to continue up quickly if this is the case.
Nothing has changed for me. Price did lose the 4 hour 200 MA again, so hopefully that will be temporary. I really want to see us above that golden pocket now before I have real confidence, so I would not be surprised to see this chop continue as altcoins fly.
I noticed this bearish divergence on the 4 hour yesterday, but did not share it because it appeared that hidden bullish divergence was imminent. We did get that hidden bull div, but lower than I expected. This was a bear div from overbought, so in hindsight I should have drawn your attention to it.
Altcoin Charts
LTC/BTC
I will continue to post this chart until I am blue in the face. I have been posting it now for week, with the break of descending resistance and beautiful retest as support. We have seen insane volume increases on this coin in the past few months. Volume precedes price.
On the Bitcoin pair, the immediate target is the line at the top of the chart, but I do think this can go higher in a full blown alt season. This is a WEEKLY chart, so if you decide to trade it at this point after missing the ideal entries, keep in mind that it could move slowly and that you could get shaken out. So consider that with your position size.
Regardless, it appears dips will be for buying on this move.
LTC/USD
You can see the previous setup idea, which is playing out nicely. I have added a new line of support that has not been tested, which would be a viable entry if you are looking. It MAY NOT HAPPEN. Dips are not guaranteed. You have to be willing to miss the move entirely, but a retest of that area as support would be very bullish and is easy to cut loose if it fails for a small loss. That's ideally what you want as a trader - markedly more upside than downside on a trade idea. Either way, the target is $370 for now, but I think this can go higher.
YFI/BTC
I have posted this setup a few times, and it has generally followed the idea. That said, it has now broken out of a new local resistance and has officially broken through the 200 MA on the daily, closing above yesterday for the first time ever. MA traders salivate at an entry like that. Targets are drawn as resistance lines, very simple here.
eBay Is Slowly Gearing Up For Cryptocurrency Adoption
In a recent interview covering eBay’s recent growth, CEO Jamie Iannone, when asked about cryptocurrencies, said the following: “we will continue to look at other payment options such as cryptocurrencies, along with looking at how we can better explore NFTs.” eBay is the perfect platform for NFTs to thrive, a no brainer for the platform to stay competitive in the collectibles industry. Although they don't have “immediate plans to accept crypto,” eBay’s push towards NFTs is one step closer to enabling full adoption. eBay’s move is similar to Amazon’s AWS support for blockchain which they added back in 2019. The first step for major companies is unlikely to be the MicroStrategy approach. Many will be searching for real use cases.
The Digital Dollar Takes A Step Forward
A non-profit initiative called the Digital Dollar Project is planning to launch a minimum of 5 pilot programs to test, “the viability of central bank digital currencies.” Backed by Accenture and the Digital Dollar Foundation, the program will assess all major aspects of CBDCs and the role will play in our country. They will release their findings for academic study and government examination. As of now, the government's position on CBDCs is a slow and steady approach.
Ethereum Is Taking Names And Kicking A$$
Ranking the world's top companies by market cap, market value, revenue and many more metrics
With a price per coin over $3,250, Ethereum has a larger market cap than Mastercard, Bank of America, PayPal, Disney and soon to be Walmart, JP Morgan Chase, Visa, and Berkshire Hathaway. If Ethereum was a company, it would be roughly the 20th largest company by market cap in the world. If Bitcoin were a company, it would be the 6th largest in the world, just behind Google.
Comparisons like the ones made above are commonly thrown around on Twitter but will eventually become irrelevant as Bitcoin outgrows the largest companies in the world. Gold’s market cap is rarely compared to companies. It is commonly ranked against the size of alternative financial markets such as debt, bonds, and ETFs. That is the likely future for Bitcoin and Ethereum.
Stablecoin Market Caps Are Quickly Rising
Typically considered a leading indicator of bull movements, the top 4 stable coin’s market caps are sitting at all-time highs, currently worth almost $80B. Below is some analysis from Glassnode.
“With the surging supply, Glassnode highlights that Bitcoin’s Stablecoin Supply Ratio (SSR), which measures the Bitcoin supply divided by the stablecoin supply, is sitting at a year-to-date low of 13.4, and is approaching its all-time-low of 9.6. a decreasing SSR value is a bullish signal. As the total supply of stablecoins increases, it suggests an increased 'buying power' of crypto-native capital that can be quickly exchanged and traded into BTC and other crypto-assets.”
The Wolf Of All Streets Podcast Ft. Mike McGlone
The last time Mike McGlone appeared on The Wolf Of All Streets Podcast, Bitcoin was sub $10k. But even at these low prices, Mike’s sentiment was infectiously optimistic. With current prices sitting almost 6x that level, Mike continues to envision a future where Bitcoin is a global reserve asset, ultimately surpassing $100,000. Although this will likely require an ETF approval, the roadmap is already drawn out and investors are slowly beginning to realize the incredible value opportunity this presents.
Follow Mike McGlone: @mikemcglone11
This episode explores:
Learning from the trading pits
Tesla selling Bitcoin
Counter trading your sentiment
Running a Bitcoin node
Learning to take profit
Volatility as opportunity
The ubiquity of Doge
Leaving gold for Bitcoin
Feeding the market Gods
Deflationary technology
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