The Wolf Den #327 - Two Competing Investment Strategies
Bitcoin Thoughts And Analysis
Bitcoin is showing potential bullish divergence with RSI on each time frame I checked from the 4 hour to daily charts.
The hope is to see it confirm on the 4 hour then each subsequent time frame.
Unconfirmed for now. Let's take a look at the charts.
WEEKLY CHART
Ugly weekly candle, although not a surprise after such strong movement over the past few weeks. A correction was becoming somewhat inevitable.
As you can see, we have had plenty of times in the past months where there was 1 or 2 down weekly candles and then things continued up. Of course, this was not in the case in May when price crashed.
For the moment, I am not particularly concerned - this remains a healthy correction. Let's see what this week has in store.
DAILY CHART
Interesting spot here on the daily. As you can see, price is currently losing both the 50 and 200 MAs as support, right as they golden cross. You would expect strong support here, honestly, so perhaps we will see the daily candle close higher and hold these lines.
4-HOUR CHART
The 4-hour chart is showing a descending channel, although I am not in love with the pattern because of the huge wick being ignored on the left. Still, it is technically valid. We also have yet another test of demand (the blue zone) and potential tweezer bottoms on these 2 4-hour candles. All potentially bottom signals.
We had confirmed bullish divergence with oversold RSI on the 4-hour, which was followed by hidden bearish divergence, signaling a cancellation of the bull div. Not ideal, but also common. Now we have a larger bull div forming, which would confirm with a clear elbow up on RSI. This is also showing up to the daily chart. My ideal situation is always a confirmation on the 4-hour, followed by divs on higher time frames. Now is the time to pay attention.
Altcoin Charts
ATOM/USDT
This hit the target of the trades that I have been sharing, and at almost the exact point where I drew it out, which is luck. That said, it has flipped $33.325, the previous all time high, to support.... hopefully. It is actually testing that level right now, which makes this the ideal place for an entry on the retest. This will largely depend on Bitcoin's next move, but I believe that is likely to be up. Some risk here with Bitcoin correcting, but in a vacuum this is an ideal setup.
EGLD/BTC
This made a new all time high at .005064, retested it as support and continued up into price discovery. Now it would appear that dips are for buying, since that retest was the ideal entry. There may be a clearer opportunity on the USDT pair below.
EGLD/USDT
EGLD has entered price discovery on the USDT pair, with the break of the previous all time high at $245.80. It has already dropped down for a retest, but was front run a bit. I am bidding around that line, but also anticipating that price could continue away now without a test as support. This is one of my largest positions, which we rode from 15 sats to 300 sats as ERD, then bought at $10 when it broke out as EGLD. Many of you are in this as well. If you are not, this could be the opportunity. We have seen a number of coins go into price discovery and continue up with massive moves.
Ukraine Is Following El Salvador
Delegates from Ukraine’s President Volodymyr Zelensky’s government have met with officials in El Salvador to learn more about their Bitcoin implementation. The Ukrainian president himself, who instructed his delegates to propose legislation, is a Bitcoin supporter. Bitcoin adoption in Ukraine would be most significant for a number of reasons. First and foremost, a Bitcoin standard would help save a crippled country that has been in a historical struggle with its very large European neighbor. Furthermore, the population is young and likely ready for a financial revolution. This will be an interesting news story to keep up with.
Elrond Gold Hit A $5 Billion Market Cap
Layer 1 blockchain projects have begun to shine and Elrond is no exception. EGLD has been a favorite coin of mine since it was originally branded as ERD in late 2019. When I first found EGLD, it became a major topic of the newsletter, and a trade that a lot of us took together. As a result of this epic early trade, my community have become Elrond fans, an exciting project we can all root for. For the Elrond investors that read this letter, I reached out to Beniamin Mincu, Elrond’s CEO, to come on the podcast and share all of the latest news. There are a number of important developments I hope to learn about, including the highly anticipated MEX airdrop, the Maiar exchange launch, and their mission of achieving 1 billion users. I am recording with Beniamin this afternoon and will try and release the episode to you ASAP.
The DAO Beginner's Handbook
DAOs are a burgeoning aspect of the crypto space that bring with them seemingly endless new rabbit holes to explore. A number of the brilliant contributors that I admire in the crypto space have high hopes for the future of DAOs and believe that they can see even more growth than the NFT space has this year. I found a really good starting point thread on Twitter if you are interested in DAOs. See above.
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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.