The Wolf Den #326 - Exchanges Are Throwing Caution To The Wind
Bitcoin Thoughts And Analysis
DAILY CHART
There is very little to see on the chart today. Price is clearly consolidating after Tuesday's drop and it is hard to know which way it will head. Generally consolidation on decreasing volume after a drop would indicate a bear pennant or flag forming, but that is not clear as of yet. I believe we have mixed signals, and need to wait for volume to kick in and see which way price heads when it does.
The 200 MA is still providing support for now, which is a line (red) that the media is talking about quite a bit. The 50 is just below.
Price traveled from the top Bollinger Band to the bottom band in a single candle on Tuesday, which is somewhat rare. It has found support there, which is encouraging. John Bollinger himself tweeted about it.
He also said that this is a nice setup for a long, targeting the upper band.
For now, price is clearly sitting on multiple supports. Let's wait and see if they hold.
4-HOUR CHART
If we do see another drop, this is what I will be watching for - my favorite reversal indicator, which is a bullish divergence with oversold RSI on the 4-hour chart. This would require a close below ~$45,090.
El Salvador's Crypto Wallets Hurt Big Business's Actual Wallets
El Salvador's bitcoin adoption could totally revolutionize the country's remittance payment rails.
Western Union, Moneygram, and other payment companies in El Salvador are in for a world of pain. Collectively, they are poised to lose about $400 million a year after the country's adoption of Bitcoin.
The predatory fees charged by these companies will vanish, bringing more prosperity to people that need it the most.
It goes without saying that sending your hard-earned dollars through one of these outdated services is an extraordinarily unfair process. It will take time for the people of El Salvador to warm up to Bitcoin, but ditching these thieves will be well worth the transition.
I just had Alex Gladstein on the show, and we discussed this idea in length. Here is a direct quote from him, “wherever you are now, you can send bitcoin to anyone with a Chivo wallet in El Salvador, and in minutes, they have the value and then they can go to one of the ATMs and take it out in cash without a fee. That’s drop-dead stunning. It’s an incredible humanitarian improvement.”
Mastercard Is Competing With Visa
Mastercard announced the acquisition of CypherTrace, one of the top on-chain analytics companies in the crypto space. According to the official press release, Mastercard is utilizing CypherTrace to expand its crypto strategy and enhance security and fraud detection around assets.
“We help companies – whether they are banks or cryptocurrency exchanges, government regulators or law enforcement to keep the crypto economy safe,” said Dave Jevans, CEO, CipherTrace. “Our two companies share this vision to provide security and trust throughout the ecosystem. We are thrilled to join the Mastercard family to scale CipherTrace’s reach across the globe.”
Also hidden in the press release was a hint that by purchasing CypherTrace, Mastercard is now in a better position to, “build their own virtual asset offerings.” The details of the acquisition are not public, but the deal should be finalized by the end of the year. Hopefully, before the second half of 2022, we will have some major announcements from Mastercard.
NFT Volume Plummets
OpenSea saw an 80% drop in volume on NFTs over the past month. 80%! While many believe that the NFT craze is just beginning, I have asserted that it is likely in a bubble and that most of the projects are simply cash grabs. This is not taking away from the future of NFTs - we are still at the beginning. But clearly there is diminishing interest in trading jpegs of wooly mammoths for the moment. This will be interesting to watch.
SEC Kicks ETF Can Down The Road
In news that is shocking to literally nobody, the SEC has once again delayed a decision on the Van Eck ETF, pushing it back for the third and final time to November 14th. The good news is that they will be forced to give a decision in November, because they are not allowed to push further.
My expectation is that it will be denied, and we will see a Bitcoin futures ETC approved down the road. Gary Gensler has hinted at this. I would love to be pleasantly surprised.
Either way, it is nice to see the SEC with their back against the wall, forced to make SOME SORT OF DECISION ON SOMETHING!
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