The Wolf Den #313 - When Does A Narrative Become Priced In?
Bitcoin Thoughts And Analysis
WEEKLY CHART
5 green weekly candles in a row - extremely bullish. The 42K area still looks like a massive untested support, but at this point it's become less likely we will see that level - I have bids there like everyone else just in case.
Price is pushing into the 23.6% Fibonacci level here on the move from 3800 to 65K, so we could see some resistance. All in all, the trend on the weekly is massively bullish.
DAILY CHART
The bull trend continues. As you can see, price made a high $48,190 a few days ago and has now flipped that local resistance to support beautifully. This is taking the stairs up, with organic and slow price action that is brutal for bears. It's far easier to change bias on a huge 10K candle to the upside, but much harder when price grinds up through levels.
The red supply zone between 55-57K seems like it should provide strong resistance, since that is the last green (grey) candle before the huge May drop. Lots of sellers were left behind there.
Altcoin Charts
There have been countless setups that are all panning out, so please continue to revisit the old ideas. Right now everything looks generally bullish.
SNX/USDT
SNX is working on an ascending triangle break out. The idea is drawn above - we want to wait for price to push through the red supply zone and either buy the breakout (riskier) or the retest of that zone as support (safer, but you may miss it). If it fails to close a candle above red and drops, I would look for an entry on a bounce from the blue ascending support. Stop losses would be comfortably below that blue line.
TLM/USDT
Alien Worlds is a hyped project in the crypto gaming sector. I am looking at coins like this (Star Atlas launching soon) after what Axie Infinity pulled.
This has a nice long flagpole, which can be measured from two different levels. It's forming a bull flag, although technically it does not have two touches on the bottom. A break of the descending blue channel for me would signal that the two targets shown are likely.
There's no trade unless this breaks out of the top of the channel.
Daily News Video
In an effort to be more consistent and timely, I am testing doing an 8:30 AM EDT livestream every week day, rather than a short video. The format is the same, this just allows for us to post charts and news that is hyper relevant as opposed to waiting until editing is done a few hours later. You can check this out every day at 8:30 or anytime after, since the content remains live.
PayPal Launches Crypto Services in UK
Everybody knew it was coming, but it's still compelling to see PayPal expand crypto services to major markets. Like in the US, UK users will now be able to buy sell and hold 4 crypto assets (BTC, ETH, LTC and BCH) using PayPal, a platform that they know and trust. Bullish for mainstream awareness and adoption.
Coinbase Puts Their Money Where Their Mouth Is
Coinbase has just received board approval to invest over $500m of its balance sheet into crypto, along with 10% of all profit going forward. According to reports on the announcement, Coinbase will not just be buying Bitcoin. They intend to buy a wide variety of assets, including Ethereum, proof-of-stake assets, and DeFi tokens. This announcement makes Coinbase the first publicly-traded company to hold these types of assets on their balance sheet. Coinbase appears to be putting their money where their mouth is, a smart move that proves their loyalty and belief in the community they are cultivating. This is something every major crypto company should be doing.
Below are statements from the official announcement.
“Today, the majority of Coinbase corporate financial transactions, such as how we pay our vendors, employees, or invest corporate cash, remain heavily weighted in fiat. We’re in a strong position to lead by example and double down on how we can enable crypto adoption and utility, starting with how we operate our business. Our investments will be continually deployed over a multi-year window using a dollar-cost averaging strategy. We are long-term investors and will only divest under select circumstances, such as an asset delisting from our platform. We may increase our allocation over time as the cryptoeconomy matures. We believe that in the future, more and more companies will hold crypto assets on their balance sheet.”
USDC Is Changing Up Its Reserve Composition
A hotly discussed topic right now in the stable coin space is the makeup of a particular coin’s reserves. In a recent blog post, USDC has announced they are reversing earlier decisions and are switching to entirely cash and short-duration U.S. Treasuries. The reasoning behind the transition is because the team is aiming to be “mindful of community sentiment, and committed to trust and transparency, in an evolving regulatory landscape.” Coinbase, Circle, and Centre are all in support of the $28 billion dollar coin completing its transition, which will happen this month. The move appears to align well with the expectations of the community and should provide a more stable foundation to their reserves - definitely a net positive.
Ethereum Rocks Are Bubbling
The Ethereum rock bubble continues to expand, with the most recent sale of one of the 100 rare rocks hitting around 600K. Justin Sun claims to have purchased one for around 500K, and now the cheapest one for sale is a million. What a world!
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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.