The Wolf Den #304 - Infrastructure Debacle
Bitcoin Thoughts And Analysis
WEEKLY CHART
Weekly MACD is about to complete a golden cross, with the shorting moving average crossing above the longer moving average. The histogram (vertical lines) is also about to cross to the bullish side. As I pointed out before, MACD dropped to historically low levels on the drop, so this bounce was likely. Also, there was a bear cross right at the top, which you can see when price was around 60K.
DAILY CHART
The 200 MA is the talk of the crypto town. As you can see, price closed above the red moving average yesterday and is currently testing it as support. Holding this line is considered a massively bullish signal by MA traders.
I am personally still watching for a potential retest of the 42K area as support, which would also be bullish. That would requires a bit more downside first, but I would like to see it tested.
We do still have potential bearish divergence with RSI on multiple time frames, and RSI is overbought. I think we would quickly see hidden bullish divergence if this does play out, but this still is worth watching.
Altcoin Charts
ADA/USDT
I took a look at this on the livestream yesterday and the idea I drew seems to be playing out thus far.
We have a confirmed double bottom, with price breaking through the black neckline. The safest entry is a retest of this line as support, with the target shown based on the depth of the pattern. This looks good, assuming a clear close above the black line.
Legacy Markets
COIN (COINBASE)
Coinbase dropped significantly after launch, finally finding a bottom and ranging in the red zone. As you can see, price broke above the range, signaling a technical end to the downtrend and accumulation. Assuming Bitcoin continues to rise, Coinbase should perform well.
I have been in this for ages, averaging down as an investment. I am currently back in profit. As a trade, I would be looking for a retest of the range highs as support before price heads up further.
AMC Accepts Bitcoin
We love to joke that buying coffee with your Bitcoin is a bad idea. That said, mainstream adoption will likely require companies testing the waters of crypto payments. AMC’s CEO claims that “the movie theater chain will have the IT systems in place to take the cryptocurrency as payment by the end of 2021.” According to the CEO, AMC’s move to accept Bitcoin is a “new way to drive sales as an attempt to bounce back from the COVID-19 pandemic.”
We should embrace efforts by companies to accept Bitcoin as payment, even if we would not make those payments ourselves.
Raoul Pal Is Mega Bullish On Ethereum
Once just a Bitcoin bull, Pal’s ideological evolution towards Ethereum has been fun to watch. In a recent interview with Daily HODL, Raoul Pal had the following to say:
In the latest edition of the Macro Investor, I wrote a 6-page article titled “The Greatest Trade,” solely about Ethereum. There is a better setup in Ethereum than March 2020 was for Bitcoin. Basically, 13% of Ethereum’s supply is free-floating and currently available, while everything else is being staked, locked, and hoarded. The supply has just been made more difficult and the supply is lower. The Ethereum in free float is decreasing every day and when ETH 2.0 releases, there will be no Ethereum available, and demand is going exponential. Exponential demand meets fixed supply, equals exponential price rise, one of the best setups I have ever seen.
It is hard to disagree with Pal here. Ethereum has massive tail winds and will continue to see further use cases develop. Some coins will ride the wave and others will be the wave. Ethereum might just be the coin with the strongest tide.
Total Crypto Market Cap Booming
Crypto markets have returned to 1.9T for the first time since the crash, roughly 600B short of the 2.5T top. This has increased 58% over the past 3 weeks.
This is a sure signal that the bull market has returned (if it ever ended) and that interest in crypto is surging. It should not be long before the total market cap is making new highs.
The Wolf Of All Streets Podcast Ft. Matt Luczynski
At the incredibly young age of 22, Matt Luczynski founded Travala, a blockchain based travel company that put innovative technology to the test. Since Travala, Matt has become an expert at taking technology and applying it to a real world use case. Now that Travala is wildly successful, he went on to the NFT space and built HoDooi, a platform poised to be eBay for NFTs. While many people believe blockchain technology and crypto is the future, Matt has actually made it a reality for millions of people to enjoy and use.
Matt Luczynski: https://twitter.com/Mattlucz
Matt and I discussed:
Founding A Company at 22
Blockchain in real life (Travala)
Moving to NFT space
How NFTs solve royalty problem
Where is the NFT market now?
Does the average mom understand Bitcoin and NFTs
Protecting investors
The eBay of NFTs
What makes a good NFT
Tokenizing assets
Crypto replacing rewards programs
The decoupling
Best crypto use cases
Institutional adoption
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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.