The Wolf Den #311 - The Greatest Investors Are Adamant
Bitcoin Thoughts And Analysis
DAILY CHART
Nothing has changed. Price continues to consolidate, although the slight local rounding top looks a bit like it could drop before heading back up. I have been saying this for a while, but a move to 40-42K would be healthy and would not be a surprise at all. For now, price is hugging the 200 MA and chopping.
4-HOUR CHART
We are grasping at straws here to find something interesting to analyze, but you can see that price is hovering above the range highs and trading between tight support and resistance. Perhaps a break of the descending black line would be a signal that price is ready to head back up, but this is a bit uninspiring.
Sideways chop.
Altcoin Charts
QNT/USD
QNT has been trading in the blue range after a significant upside move. As you can see, price has predictably been rejected at the range highs, so there is no immediate entry. As always, I am telling you what I will do if a certain thing happens. There are two entries I like here, one above and one below. I do not foresee price dropping back to the range EQ unless Bitcoin dumps, but if it does, that's a decent entry with a stop loss below the range.
The safer entry is a break of the range highs and price heading into price discovery. We have seen this from a number of coins of late, like Solana and Luna. The trigger would be a close above the range, at which point you would place bids around the range highs - generally some above and below in case you get front run or price drops a bit further.
Chart Requests
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Jack Dorsey Is Mining Bitcoin With Compass
Jack Dorsey tweeted that he is mining Bitcoin with Compass Mining, a company that I have been using for a few months as well. It is clear that he is truly all in on testing every aspect of Bitcoin, from investing to mining.
We will eventually be making a video to explain how it works, but at the most basic you level, you simply visit the Compass Mining site, choose your asic and location, and then they do everything else. You pay the low monthly electricity fees and that's it.
On my first rig (I have quite a few, with many more coming online in the next couple of months), I basically paid 10K, and have made 2500 in the first 2.5 months. That was well timed with China going offline, but generally the rigs pay for themselves in 10-12 months and can mine for at least 3 years - new setups up to 10.
More importantly, the actual rig that I bought is now selling for over 15K, and was selling for 25K during the bull run.
They are back up now, so most rigs won't come online until Q1 2022, but it's a long term game. If you want to sign up, check out Compass Mining.
JP Morgan Chase Shuts Down Compass Mining's Accounts
Even as Jack Dorsey announces he is mining with Compass, JP Morgan Chase has shut down Compass's bank accounts. There is no further information as to why this happened, but it's a reminder that your money in the bank is not always under your control.
Bitcoin Mixers Are In Trouble
Bitcoin mixer Helix is under heavy scrutiny now that Larry Harmon, the operator of the site, has pleaded guilty to laundering around $300 million in Bitcoin. Courts found that from 2014 to 2017, over 1.2 million transactions were conducted that failed to filter out suspicious transactions. This isn't the only mixer to be caught by authorities - Bitcoin Frog Mixer and others have been in legal trouble before. Even if you are using the service just for privacy, your coins can be mixed into a lot of other coins that are specifically from criminal individuals or organizations. Furthermore, exchanges often ban users that have addresses linked to these services. Use mixers at your own risk.
Facebook Is Still In Crypto
Diem is not dead. Once known as Libra and then rebranded to Diem, Facebook’s massive crypto undertaking is still in the works. Right now, all eyes are on Facebook’s Novi wallet, “an interoperable digital wallet that will enable people, and eventually small businesses, to move money around domestically and internationally in a quick and affordable way.” From the tone and claims of their most recent announcement, Novi is an ambitious project that Facebook is heavily focused on. Rather than just creating a digital wallet that sends fiat, Novi wants to play an integral role in, “transforming our broken payments infrastructure.”
Facebook is dealing with severe headwinds, including China’s CBDC and the U.S.’s inability to act. In the face of this, Facebook remains committed. They want to, “create an open, interoperable protocol for money on the internet and truly change the game for people and businesses around the world.” To achieve this goal, they intend to be transparent and responsible in the structuring of their cash reserves. Assuming Diem and Novi go live, you can probably count on the fact that their products will be overly compliant, considering the scrutiny they have received over the past couple of years. That being said, they are incredibly late to the race and are directly competing with CBDCs, USDT, USDC, and other stable currencies that are already established. Ultimately the people will decide which currency they prefer, but it’s hard to imagine they will all succeed in the long run.
The Wolf Of All Streets Podcast Ft. Charles Payne
At the age of 14, Charles Payne knew he wanted to work on Wall Street. After years of hard work, cold calling, and slowly building an empire, Charles became an icon in the financial space. Today, Charles is both an inspiration and source of knowledge to millions of Americans who tune in to hear him talk everyday at 2pm est on Fox Business Network. As the host of “Making Money,” Charles is regarded as an expert in all markets, but considers himself a student of the game, always seeking improvement.
Charles Payne: https://twitter.com/cvpayne
Making Money: https://www.foxbusiness.com/shows/mak...
Charles and I discussed:
The return of crypto
The regulatory push
Charles’ stock picks
Innovate or die
Charles’s background
Building the empire
The early beginnings of CNBC
Always learning
Who we are as a nation
The greatest job market ever
The crypto market personality
Do stocks only go up?
The rise of meme stocks
Podcast Sponsor:
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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.