The Wolf Den #292 - Weak Hands
Bitcoin Thoughts And Analysis
WEEKLY CHART
The weekly candle is promising heading into the weekend. It would be quite bullish to close as a green hammer, actually gaining ground on the week even after the early dip. Further, price is very close to holding the 50 MA as support, a line in the sand for many bulls. This is going to be fun to watch for the next few days.
DAILY CHART
Price is consolidating below the EQ of the descending channel. I am watching for a flip of the descending dashed line to indicate that price is likely to head to the top of the channel. Still not much to see, but the large daily candle on volume from a few days ago remains encouraging.
4-HOUR CHART
A few things that I am watching on low time frames. First, we have a blue ascending triangle which could also be viewed as an ascending wedge. I prefer triangle, because the highs are almost the same. You can see that price is consolidating up with higher lows, which is generally a good sign. A triangle should break up, a wedge would be more likely to break down, although they are unreliable patterns, historically.
If price drops, we could see an inverse head and shoulders form. I will be watching for that, but this is simply an idea with no basis as of yet.
JP Morgan Is Allowing More Crypto Trades
Crypto investing through major financial institutions has been limited to a small group of wealthy clients. This has now changed, albeit slightly. JP Morgan is now allowing their retail clients access to crypto as long as the advice and trades are “unsolicited.” Retail clients will not be offered crypto in any capacity, rather it will be their responsibility to bring up the topic and ask for access.
Yes, this is the same bank led by Jamie Dimon, one of crypto's most vehement detractors.
For the clients that ask, 5 products will be available: 4 from Grayscale and 1 from Osprey Funds. The clients will be able to choose from the “Bitcoin Trust (GBTC), Bitcoin Cash Trust (BCHG), Ethereum Trust (ETHE), and Ethereum Classic Trust (ETCG), as well as Osprey Funds’ over-the-counter Bitcoin Trust, OBTC.”
Although this is a step in the right direction, there is still plenty of ground left to cover. Soon, crypto will be recommended rather than kept quiet. Furthermore, only offering Bitcoin, Bitcoin Cash, Ethereum, and Ethereum Classic is absurd.
If JP Morgan wants its clients to succeed, offering forks is not diversification in the crypto space, it is adding risk. There are +10,000 coins in the market, and one of the coins they offer has been removed from major exchanges due to 51% attacks (ETC), and another is highly disliked by most of the Bitcoin community (BCH). Still, JP Morgan deserves applause for outperforming many of its counterparts in the adoption race.
EIP-1559 Limited NFTs
EIP-1559 is the recent talk of the Ethereum community, but in reality, the proposal has been in the works for over 2 years. Many of the core developers around the world have dedicated their time and energy to improving the code of Ethereum without pay or appreciation. They are driven solely by passion. To honor the developers, a commemorative limited NFT series was issued to recognize those that have specifically contributed to EIP-1559.
1,559 NFTs were minted with each costing .1159 ETH. All of the proceeds are given directly to contributors, excluding Vitalik or the official Ethereum foundation, using a split contract. The breakdown is as follows:
Authors - 15%
Client Teams - 49%
Researchers - 16%
Managers - 12%
Testers - 6%
NFT Artist - 2%
The total amount of Ethereum raised will be 134 Ethereum, worth roughly $270,000 at the time of writing. Below is an artist statement:
“I set out to visualize the collaborative process of developers and community as they shape Ethereum. In the perpetually online world of blockchains, stewarding infrastructure is a fluid, never-ending process. A dance of creator and user. So we continue on, infinitely dancing across dimensions as we build a better Ethereum.”
Unfortunately, these are selling out very fast and will likely be gone before you read this.
BlockFi In Regulatory Crosshairs
Three state regulators have hit BlockFi with cease-and-desist warnings on the BlockFi Interest Account product, known as “BIA.” Alabama, Texas, and New Jersey regulators are considering BlockFi’s BIA to be an investment product, calling into question security laws. The issue that regulators have with BlockFi is their poor choice of terminology to describe the accounts and the fact customers must deposit crypto to access the BIA. The language advertising the product reads, “BlockFi allows investors to purchase a BIA.…” These two aspects have triggered security laws into question, because the wording indicates that BlockFi is issuing an investment product rather than a rewards service or interest service. As of now, it is just state regulators issuing the warning. Any major issues for BlockFi would likely effect other similar providers, so this is a story worth watching.
The Early Stages of Ethereum 2.0
The Ethereum Improvement Proposal for the merge has been dubbed EIP-3675. The name was just released on Github and will be the official proposal that switches Ethereum’s proof-of-work consensus model to proof-of-stake. As more information is released, this should become the most important buzzword around Ethereum, far eclipsing the popularity of EIP-1559 and every other major technical proposal and term. Exciting times are ahead!
Ashton Kutcher, Mila Kunis, And Vitalik Buterin?
Ashton Kutcher and Mila Kunis are now a part of the crypto community, and their debut was hilarious. Their comedy skit is 2 minutes long and features Vitalik Buterin. If you want a laugh, watch the linked video.
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