The Wolf Den #254 - No India Ban
Bitcoin Thoughts And Analysis
DAILY CHART
Very little has changed. Yesterday's candle was bullish, with a wick down and then a ton of buying interest, closing the candle hear the daily highs. That said, this is still all sideways chop and consolidation, and the symmetrical triangle is look more important. Ultimately a break either way should determine the trend. Also, as you know, we want to see Bitcoin above 42K before we can start to get excited.
We have potential hidden bearish divergence forming on the daily, as discussed yesterday. It is not drawn above because it is not confirmed. We do not want to see a definitive elbow down on RSI with price making a lower high. We want RSI to continue up.
Altcoin Charts
ETH/BTC
This chart actually looks very good here. Ethereum broke descending resistance on the BTC pair and just retested that resistance as support almost perfectly. Nothing is certain in trading, but if your style is resistance to support flips and breakout, this is about as good as it gets.
More importantly, a nice Ethereum move against Bitcoin could be a sign that altcoins will be tradable in the near future. It could also indicate that Bitcoin is likely to range for a while.
Support and resistance levels are noted. If you are actively trading this, which I am not (I just buy ETH for the long haul), then there are two areas where you could potential place stop losses. The top one is based on the descending support failing and gives a bit of room for a wick. The bottom one is below a key support, just far enough to also (hopefully) avoid a wick. Depends on your preference. Size position accordingly.
How You Should Decide What To Invest In
The team and I wrote a blog at the start of the year outlining how we decide what cryptocurrencies to invest in. Prices across the board have generally fallen back to the same levels when this blog was written, once again offering you an opportunity to buy in "cheap" for a long-term investment. One of the focuses we look at is “what problem is the coin solving,” which is becoming more important as we just hit 10,000 recorded known coins in the market. Many of these are solutions looking for a problem.
If you can’t understand and explain the problem your favorite coin is solving, then it may not be a good investment. This example is only 1 of the 5 major factors we consider when taking on an investment. Now is the time to read the blog if you didn't and become an informed decision-maker. We have all been afforded the opportunity to step back in time in terms of price by 6 months, so it's time to make the most of the market.
You Can Use Your Coinbase Card With Apple Pay And Google Pay
Coinbase just announced that you can use your Coinbase Card with Apple Pay and Google Pay, making it far easier to actually spend your crypto on normal purchases. This is another step towards mainstream adoption, although it does not address the tax issue with actually spending your Bitcoin! Still, great to see the ball being advanced.
Bitcoin ETP Launching on London Exchange
"The UK-based ETC Group has traded $5.4 billion since it launched its initial BTC ETP on the German Stock Exchange. However, its attempt to follow that up on the London Stock Exchange stalled because the LSE’s clearinghouse doesn’t accept crypto products. Instead, ETC is offering its bitcoin ETP through another London-based regulated UK market, Aquis Exchange.
The UK listing of the BTC ETP is only possible because the security is already listed in Switzerland. This is where Aquis will also send it to be cleared. After the UK left the EU’s single market, the path for Swiss securities to resume trading in London opened up. This launch highlights the tensions in the UK surrounding the regulation of cryptocurrencies. "
Interesting to see how they are effectively using a loophole to make this ETP available for trading in the UK by coopting Swiss Law. We may see more of this, depending on the regulator environment in each country.
Either way, ETPs and ETFs are launching worldwide, and it's time for the US to follow suit.
Miners Are On Board With Bitcoin’s Upgrade
Bitcoin does not require every entity to be on board with its upgrades, but consensus does amount to strength. Bitcoin Core version 0.21.1 is the latest Bitcoin upgrade that Marathon Digital Holdings has finally agreed to adopt. Included in the upgrade is the important Taproot update that roughly 97% of miners around the world are signaling support for. When companies or communities disagree on upgrades, the result is forks such as BCH, BSV, ETC, etc. Even if there was contention around the update, it wouldn't be the end of the world, but that would open the door to difficulty and potential concern. Take Ethereum for example. The majority of the community supports EIP-1559, but the miners against the proposal have slowed down ETH’s 2.0 rollout as Vitalik tries to find workarounds and manage the image of Ethereum. Eventually, Bitcoin’s Taproot upgrade will pick up steam in the media, similar to how EIP-1559 did, pushing Ethereum’s price with force. All that is needed is for the interested Bitcoin media to shift their focus.
Interview With Finance Magnates
Scott Melker, the host of the Wolf of All Streets podcast, sat down with Finance Magnates last week.
I had the opportunity to sit down with FinanceMagnates about the market, why Bitcoin crashed, the role of Elon Musk and Dave Portney etc. It was a great conversation!
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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.