The Wolf Den #239 - The Purpose Of Derivatives
Bitcoin Thoughts And Analysis
DAILY CHART
Too early to judge, but nice to see long wicks down on the last 3 daily candles, which indicates demand. For now, this remains ugly sideways chop, nearly impossible to analyze or trade.
Rejected at daily resistance, as discussed yesterday. That line is worrisome - I want to see price above it, around $59K. This drop should not have caught anyone by surprise.
4-HOUR CHART
The infamous "Bart Simpson" pattern, over and over again. Upside down Bart, Bart, Bart, Bart. This is the hardest price action to trade and is utterly avoidable. Really, price goes up, consolidates, drops, back up and does it again. Nothing to see here.
Yesterday's bear div played out, so no surprises. I am looking for another drop to get RSI oversold, although it's not necessary at all. That would take us from overbought to oversold, where I would look for bull divs.
Regardless, avoid. Sideways chop all around.
Altcoin Charts
DIA/BTC
Revisiting an idea from last week. The top entry never triggered, as there was never a close above resistance. Price ultimately dropped into demand where it is sitting now. Nothing is certain, but technically this is a good entry area and a lot of you likely already had bids here from the setup last week.
EOS/BTC & EOS/USD
Yes, I just shared this yesterday, but wanted to share again because it retested resistance as support exactly as I was hoping for. It did the same on the USD pair shown below, on a key weekly level.
Once again, this looks exactly like most "dinosaur" coins before their huge recent moves. This continue to look like it has tremendous upside potential.
YFI/BTC
I have posted this setup a number of times. YFI has remained strong against Bitcoin for many weeks now and is finally playing out as hoped. At this point, it is breaking resistance so the next entry would be a retest of 1.11 as support. Beautiful price action on this one, hope you caught it on a previous set up.
Legacy Markets
DJI (DOW JONES)
The Dow Jones just printed a textbook shooting star candle on the daily, followed by a significant gap down and bearish open. The day is just beginning, so we cannot analyze the current candle yet. This is more for educational purposes. The shooting star is a reversal pattern in an uptrend - the exact same candle at the bottom of a trend is called an inverted hammer, and is actually considered bullish. Context and placement matter.
I am not in the business of calling stock market tops when we have infinite QE and money printing, but from a technical perspective this is quite ugly and could signal a local top. More info on the shooting star below:
Binance Lists SHIB Token, Warns Of Risk
As if Dogecoin already wasn’t enough of a meme, the internet has now rallied behind its knockoff cousin coin, Shiba Inu (or SHIB token), demanding exchanges provide support. Binance was the first major exchange to cave in. At the end of the day, exchanges are in the business of listing tokens, not of making sure every token is a pristine and beautiful representation of the crypto space. Of course, exchanges want to protect users, but supporting controversial tokens is part of their model, hence widespread support for BCH, BSV, ETC, XRP, DOGE, etc. Many coins have naysayers.
SHIB is another strange meme token that will bring a lot of new users to the space. If you aren't convinced these tokens are risky, you may be surprised to find out that Vitalik, the founder of Ethereum, holds 50% of SHIB - not by his choosing. The developers intentionally sent them to Vitalik, as pointed out in the white paper, to “lock up the supply.”
These coins are not investments, they are merely pump and dump jokes that offer an opportunity to those that can outwit the masses. Unfortunately, most people won't win.
Tom Brady And Mark Zuckerberg Join Team Bitcoin
In less than 24 hours, one of the world's greatest athletes and one of the world's most famous entrepreneurs have each announced their support for Bitcoin. Tom Brady added laser eyes to his Twitter profile and Mark Zuckerberg tweeted out his goats' names - “Bitcoin” and “Max.” Bitcoin is past the point of celebrity endorsements impacting its trajectory, but undoubtedly, displays like these continue to speed up global adoption. Both men are leaders of their industries, setting standards for millions of others to look up to and follow. It feels good to have them on our team.
Palantir Accepting Bitcoin Payments
"Peter Thiel's data analytics company Palantir Technologies now accepts bitcoin as a form of payment from clients.
Palantir revealed the news in a Q1 earnings call on Tuesday, according to a CNBC report. The presentation from the call is not publicly available on Palantir's website.
Palantir, which has a market capitalization of nearly $34 billion, is also considering adding bitcoin to its balance sheet, according to CNBC. During the earnings call, the New York Stock Exchange-listed company said the option is "definitely on the table.""
The Wolf Of All Streets Podcast Ft. Erik Voorhees
After successfully founding Satoshi Dice and Coinapult, Erik Voorhees took his developer passion to the next level with ShapeShift, one of the earliest and most influential trading platforms in the crypto space. Driven by his vision to reimagine global finance, Erik continues his pursuit for a new financial system that lives outside our modern day fiat ecosphere.
Follow Erik Voorhees: https://twitter.com/ErikVoorhees
This episode explores:
Escaping the fiat system
Pristine money
Lambo memes
Warren Buffet and Charlie Munger
Money from thin air
DeFi vs banks
Yachts as collateral
Bitcoin’s Taproot upgrade
Zero day bugs
Gambling in crypto
Governments freezing assets
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