The Wolf Den #244 - Hold Winners, Cut Losers
Bitcoin Thoughts And Analysis
Almost nothing has changed with Bitcoin in the past 24 hours. It still looks rather weak, unable to push much higher. We could head up from here, but one big candle and wick down into the 30Ks for a final flush would not surprise me at all.
DAILY CHART
This was one of the more frustrating daily closes I can ever recall. It closed just low enough to invalidate potential bullish divergence, and just high enough to not hit oversold. I would still like to finally close a candle oversold for the first time since last March.
4-HOUR CHART
Annoyingly, we once again have a hidden bear div following a bullish divergence. Very little strength, even with this normally powerful signal. We have had quite a bit of buying demand at each low, but there's been minimal follow through. Hard to be excited about Bitcoin's price action for the moment, but volume can kick in any time.
Altcoin Charts
AAVE/BTC
This is a past setup that hit its target today. Now it needs a refresh. There are two trades worth watching here. If this convincingly flips .014226, the all time high, to support, then a retest of that level could be a solid entry before price discovery. That said, this does look like a potential cup and handle and RSI is already overbought on almost every time frame. I would look for some consolidation below resistance before another major move up, which could give a lower entry.
It is AT RESISTANCE as we speak, so I would not buy. The criteria need to be filled.
Legacy Markets
XAU (GOLD)
Peter Schiff must be ecstatic, as gold looks ready to continue its recent rise. Breaking through resistance. Not officially a bull flag because it lacks the two touches to the bottom, but you can see the price action around the equilibrium (center dashed line) of the channel which confirms the validity. This should be heading back to $2000. It's worth watching the DXY (dollar) when you trade gold - dollar weakness should equal gold strength.
Legislation On Hard Forks Proposed In Congress
This legislation would be a boon for crypto investors who received coins from hard forks.
"The proposed legislation would prohibit the Internal Revenue Service (IRS) from leveraging penalties related to forked assets until it issues further guidance for taxpayers.
Under the bill, the personal receipt of a cryptocurrency resulting from a fork, or an event during which a cryptocurrency network splits into two distinct chains, would fall under the safe harbor, meaning it wouldn't constitute a taxable event until the IRS provides additional clarity."
Coinbase Competing With MetaMask
The Chrome extension aims to make it easier for Coinbase users to access popular apps.
For users of both Coinbase and dapps like Uniswap, Coinbase has made life a lot easier. You will now be able to interact directly with dapps through the Coinbase Wallet Chrome extension, much like you do now with MetaMask. I have not tried it, but seems worth checking out if the above profile describes you.
FDIC Exploring Crypto
The United States Federal Deposit Insurance Corporation is the major provider of bank deposit insurance, hence the term "FDIC insured."
The FDIC is seeking information from the public on cryptocurrency activities as they relate to banks. This is a clear indication that they are being pressured to address crypto and that they are monitoring the actions of banks moving into the space.
"The agency’s interest in digital asset use cases for financial institutions comes as U.S. banks actively moving into the crypto industry. In early May, investment bank Goldman Sachs launched a cryptocurrency trading desk, allowing institutional partners to trade derivatives products. Previously, Morgan Stanley added Bitcoin (BTC) exposure to 12 investment funds after announcing plans to offer crypto services to wealthy clients."
FDIC insurance on crypto holdings in banks would be a game changer.
Beware Of Scammers
The more crypto grows and becomes mainstream, the more scammers will try to take their piece. At the end of the day, when you become a crypto enthusiast, you agree to be your own bank, a scary proposition for many. Be careful out there and become acquainted with the various kinds of scams.
Relite Finance - Simple Lending And Borrowing
Relite Finance is a cross-chain DeFi money market protocol that enables users to lend, borrow, and stake all crypto assets in one interface by utilizing Polkadot’s Moonbeam Parachain, bridges, and a unique reserve fund module. Relite plans on creating interoperability with Bitcoin, Ethereum, and other blockchains. In addition, Relite plans to offer collateralization of NFTs with better fees and usability than other protocols can offer.
Relite Finance is Venture-backed by Master Ventures, GD10 Ventures, AU21 Capital, A195, Blocksync Ventures, Rarestone Capital, Spark Digital Capital, Parsiq, Phoenix Crypto VC, Sky Ventures, x21, CryptoDormFund, Squares Capital, ex, Genblock Capital. Its Team, Whitepaper, Tokenomics and other info can be found at http://relite.finance.
If you decide to trade this coin, here is the proper info.
The Wolf Of All Streets Podcast Ft. CZ Binance
If running an exchange wasn't hard enough, Binance is currently taking in 10x the number of new users daily compared to 3 months ago. In this fascinating episode, Binance CEO CZ debunked a powerful BTC rumor, explained his motivation for success, and shared insight into what is really going on in the crypto market today. This episode will leave you shocked as what you know about crypto might not be true after all.
In this episode CZ Binance explores:
The process of listing a token
Running out of ERC-20 addresses
10x user demand
Managing 20-30 meetings a day
Pancake Swap and BSC
The truth behind exchange outflows
Meme coins
Spending hundreds of millions on security
Sipping martinis and playing golf
The CoinMarketCap acquisition
Finding passion and staying motivated
PODCAST SPONSORS:
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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.