The Wolf Den #312 - Grayscale Discount
Bitcoin Thoughts And Analysis
DAILY CHART
Bitcoin continues to slowly grind upwards, refusing to drop and retest key former resistance levels as support. It just made a new local high, the farthest it has pushed since the bottom. That said, it also continues to make bear divs on multiple times frames, which is always worth watching. Bitcoin seems indifferent to them for now.
At the moment, it looks somewhat clear that the correction is likely over and that dips are for buying on the way up. It broke the descending channel (blue), broke out of accumulation and ranging (not shown)m broke 42K, is breaking 47-48K now. Not much to be bearish about unless it starts losing those levels again.
Shown above is the most recent potential bearish divergence. Not yet confirmed and could easily fail.
4-HOUR CHART
Bitcoin broke through the resistance that I shared yesterday on increased volume and rocketed. Beautiful. Now it is pushing through the local highs - flipping those to support puts 50-51K easily in range for the next move. Volume is once again increasing on the current candle. This is real demand and buying.
Altcoin Charts
It is alt season for the moment, with no indication of how long it will last. If feels like you can throw a dart right now to choose a coin and make money. We were well ahead of it here, sharing setups before they really popped and before alts started moving as a whole. As I often say, the most key part of risk management is knowing when to sit on our hands (which was for months) and when to come back into the market. I am trying not to overwhelm you with charts, all of the older setups I have been sharing are still valid.
BNB/BTC
I have been stalking this trade for quite a while, and we finally have a break of the descending blue line with a close above. Today we have a retest of that line as support and the EQ of the channel as support as well. That should indicate that price will revisit the top of the red range, .012352. Areas of resistance before that target, which are also targets, are shown.
BNB/USDT
This is really starting to look like it wants to head back to the recent all time high. We now have a clear flip of the EQ of the blue range and potentially a break out above the red range. The flip of the EQ of the blue targets the recent highs, as does the break through the blue descending resistance.
Technically, we want to see a close above the red range here to signal that accumulation is complete, so keep an eye on that at the daily close. There is very little resistance to the all time high now, since price dropped so hard before the range.
RUNE/USDT
Update to an earlier setup that we have been waiting to trigger. This finally closed a candle yesterday above the neckline of the inverse head and shoulders and has tested it as support today. Based on the depth of the pattern, the target is $14.138, right at a key horizontal resistance. Easy.
Coinbase Travels To Japan
Coinbase has partnered with Mitsubishi UFJ Financial Group (MUFG), a bank with more than 40 million Japanese customers, to bring Coinbase to Japan. MUFG will allow millions of customers to make instant deposits and begin trading on the exchange, mirroring how Coinbase operates in other jurisdictions. For now, Coinbase in Japan will only offer the top 5 coins by trading volume, but they have plans to roll out far more support and additional products. This will be a huge step in the growth of the company and a testament to their ability to crack into new markets.
More Banks Are Rushing To Crypto
A recent SEC filing report revealed 3 separate registrations for Bitcoin funds. Two of the registrations were from JP Morgan and one was from Wells Fargo, a newer institutional name in the crypto world. Little information has been made public, but we do know that one of JP Morgan’s funds will service investors that meet a minimum investment requirement of $100,000. The other two funds have no quota. This is a huge step in the right direction towards mainstream adoption considering $100,000 is significantly lower than some of the earlier 7 figure quotas that we have seen and the two other offerings have no quota at all. The more the merrier, especially when they allow smaller investors to participate.
Institutions Are Taking DeFi Seriously
For institutional interest, first it was Bitcoin, then it was Ethereum, and now it is DeFi. We are still in the very early stages of institutions just beginning to recognize Bitcoin, so everything beyond that is only scratching the surface. That being said, we are already seeing early signs of institutional interest in DeFi. Galaxy Digital has already launched a number of professional-grade indexes, and this time DeFi was their sole focus. Working with Bloomberg, the Galaxy DeFi Index Fund will track nine tokens including, “Uniswap, Aave, Maker, Compound, and Sushi.”
Really bullish were the comments from Steve Kurtz, a partner at Galaxy Digital, “Why now? It really comes from client inquiries. DeFi, which is in many ways one of the most revolutionary aspects of the space, has become much easier for institutions to understand intuitively versus bitcoin or ethereum because there’s a model; there is lending, borrowing, synthetics. swaps and derivatives. So as much as it’s an early part of the asset class, it’s something that I think institutions have been able to dig their teeth into, and so we were being reactive to that.”
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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.