The Wolf Den #279 - Grayscale Unlock
Bitcoin Thoughts And Analysis
DAILY CHART
Bitcoin held the EQ of the descending blue channel on the close yesterday, which is encouraging. That said, this is disgusting, sideways chop that I would not trade with my worst enemy's money. There's just nothing to do here but wait as long as it takes to get some definitive direction. Just take a look below at what's happening on the 4-hour chart.
4-HOUR CHART
Absolutely gross. Bitcoin pumped on the last 4 hour candle, only to immediately retrace the entire move a candle later. I cannot imagine trying to trade or even accurately analyze this price action. Price is back at demand/support for the moment. Still sitting on my hands.
Absolutely gross. Bitcoin pumped on the last 4 hour candle, only to immediately retrace the entire move a candle later. I cannot imagine trying to
Altcoin Charts
ADA/USDT
Altcoins remain very risky at the moment, likely to react to any move by Bitcoin. I am not personally taking this trade. If Bitcoin can remain stable here, then ADA looks promising. Fundamentally, we know that Grayscale has added a large position in Cardano to their large cap fund, so there's real interest in the asset at the moment.
As you can see, we had a breakout of the blue descending line, signaling a technical conclusion to the downtrend. Since then, price has made higher lows and higher highs in succession, a good sign of a likely reversal. This equates to an ascending triangle, with a flat top at $1.3998. This line has now been broken and retested as support, which is how I extrapolated the target. I measured the depth of the triangle from bottom to neckline, then pulled it to find the target.
I have shown two ideas for approaching a trade on this asset, one with a tighter stop around the most recent unconfirmed low (confirmation comes with another higher high) and one with a stop slightly below the last confirmed low. Either way, we ideally want to see ADA hold $1.39 as support, and it's relatively easy to take a small loss here assuming we are wrong, which is the key to finding trades.
The Philippine Stock Exchange Is Adding Crypto
The Philippine Stock Exchange is planning to add cryptocurrency according to the president and CEO Ramon Monzon. Right now, the country offers 17 different crypto exchanges, but this will be a first for a legacy exchange offering. This is the equivalent of the NYSE or the NASDAQ offering cryptocurrency support. When asked about the move, Monzon said the following, “if there should be any exchange for cryptos, it should be done at the PSE. Why? Number one it’s because we have the trading infrastructure. But more importantly, we’ll be able to have investor protection safeguards especially with a product like crypto.”
This is a huge step in the right direction for investors who are curious about crypto but are unwilling to sign up for an exchange that is relatively new and unestablished compared to their preferred and familiar platform.
Ernst & Young Is Working To Solve Ethereum’s Scaling Problems
EY has set out to play a role in solving Ethereum’s scaling issues. Although extremely complicated to solve, the network effects of the asset are now encouraging traditional entities to work towards a solution, which is very bullish. Not only will solving the problem bring a huge amount of positive press, but it will also greatly benefit the companies involved due to their pre-existing stakes. When asked why EY was working on the problem, their head of blockchain said EY was “doing its part to hasten enterprise adoption of the technology.” Although an altruistic endeavor, it is hard to imagine that “doing their part” is their only intention. Their contribution called Nightfall 3 has the capability to “deliver almost 90% in gas fee reduction compared with public ERC-20 token transfers” and can be found on Github.
Barclays Bank Blocks Binance
Screenshots have been circulating twitter of text messages and emails from Barclays, warning customers that they will no longer be able to deposit funds into Binance. This comes on the heels of the FCA announcement that "Late last month, the regulator announced: “Binance Markets Ltd. is not currently permitted to undertake any regulated activities without the prior written consent of the FCA.” It also stated that by the close of business on June 30, the world’s largest crypto exchange would be compelled to display on its website and social media outlets a message stating clearly that it was not permitted to undertake any regulated activity in the UK.
This is independent action by the bank, likely to make sure they are compliant in case there really is a "Binance ban" in the UK.
Supply Of BTC On Exchanges Hits Yearly Low
This coincides with the news that whales have been accumulating Bitcoin again, as large wallets have increased their holdings significantly. It is always a positive sign when coins leave exchanges, removing supply from the market, at least for a little while. Santiment tweeted yesterday: “The 6-month low is a promising sign, as it generally will indicate there is a decreased risk of more major $BTC selloffs.”
There was a dramatic increase in coins held on exchanges in May, right before the sell off.
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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.