The Wolf Den #280 - Asymmetric Bets
Bitcoin Thoughts And Analysis
4-HOUR CHART
Absolutely nothing to see here. Complete sideways chop and almost non existent volume. Nice little bounce from the demand zone, but nothing of significance is happening. Above 36K would be slightly interesting for bulls and would make the case for Wyckoff Accumulation stronger. But that's about it.
Here is a tweet about that, if you are interested.
Altcoin Charts
YFI/BTC
I had this cued up a few days ago, but the market was shaky and I did not want to post it at that time.
As you can see, price broke descending resistance and has finally made a strong move up, also breaking horizontal resistance. What I like here is that it is retesting as support as we speak and looks likely to be successful. It also appears to be forming a small bull flag or pennant above support. This can easily fail if BTC moves or alts dump across the board, but technically it looks good here and you can set stops a bit below 1.0 to avoid a wick. Small loss if it happens.
Targets are resistance lines and Fibonacci levels above. You can see that they line up somewhat well, especially the 50% level (not a Fib).
Legacy Markets
AMZN (AMAZON)
I posted this trade a few weeks ago at the bottom circle - a bounce off of the channel EQ and weekly 50 MA. As you can see, it hit the first target at the range high and broke through this week, going into price discovery and making a new all time high after an entire year of consolidation in this range. Impressive. At this point, the sky is the limit. I have ALWAYS bought Amazon dips and have been buying the stock passively through dollar cost averaging for years. If you are looking for an entry now, a retest of the previous all time high as support (no guarantees it happens) is what you would technically be looking for.
Germany Approves Institutional Crypto Investing
The German parliament has officially approved the “Fund Location Act,” which specifies that special funds in the country can legally allocate 20% of their holdings to crypto. In theory, if the full 20% was deployed right now (which won't remotely happen), this would equal about $415b. These "Spezialfonds" are a big deal, as there are about 4,000 of them representing $2.2T in value. Assuming these funds have the right mindset and buy into crypto at a slow pace for the long term, this could create a new wave of positive news for the space as Germany’s financial sector capitalizes on the crypto opportunity.
Another Hedge Fund Is Jumping Into Crypto
Marshall Wace, a hedge fund with $50b AUM, is “targeting investments in areas such as blockchain technology, payments systems for digital currencies and stablecoins.” More specifically, the plan for the fund is to take on stakes in private, late-stage development crypto companies. A lot of Marshall Wace’s interest is around stablecoins, likely because they are going to be a major bridge between traditional finance and cryptocurrencies. Another reason to be bullish on the direction and infrastructure of the crypto space.
EIP-1559 Is Pushed Back... Again
The last time I reported on Ethereum’s major upgrade, the scheduled release was slated for the end of July. During the Ethereum core meeting at the end of this week, the topic is supposed to be discussed and an official date may be announced. Right now, it looks like July is off the table for a release and that we will potentially see the contentious upgrade in August. Hopefully, at the end of this week, we will have a specific date to look forward to.
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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.