The Wolf Den #337 - Is A Hamster Trading Better Than You?
Bitcoin Thoughts And Analysis
WEEKLY CHART
A successful retest of a key resistance as support is very bullish. We have been discussing a retest of 42K as support for months, and it finally happened. As usual, this retest was not easy - price nuked through and threatened to close well below before bouncing. In the end, the weekly candle closed well above 42K, so this is a successful retest for now.
It is always scary when it happens, which is the reason that sentiment tends to turn bearish right at support.
The weekly candle had a nice long wick down, indicating that buyers stepped in and that there was quite a bit of demand below that level.
DAILY CHART
The last 3 candles retested the range highs as support, with long wicks down and closes right around the top. I still think the safest reversal signal back up would be a break of the blue descending line.
This is the same idea on the line chart, also showing the same pattern on RSI. As you can see, RSI is already showing a likely breakout (confirms at daily close), which often precedes the same move on price. Drawing patterns on RSI is a great way to get ahead of what is happening.
Altcoin Charts
OCEAN/USDT
This is just an idea, there is no trade here yet. Once again, I provide setups, not signals.
As you can see, price appears to be forming a bull flag, consolidating in a descending channel below the blue supply area that was major resistance on the last push up. Price is still trading in the bottom half of the channel. Ultimately, the real trade is a break of the channel top to the upside. The target is based on the length of the flag, and would be determined by where the breakout occurs. Put an alarm on the channel and forget about it until it break the top.
SOL/USDT
Solana has been one of the best performing assets on the planet this year, trading at only a few dollars to start 2021. As you can see, price is currently attempting a break through the descending blue line, which would signal that consolidation is complete and the asset is once again ready to rise. The immediate target is the all time high around $216, and a break of that area would send this into price discovery.
The safest entry is a confirmed break of the blue line with a candle close and retest as support, although that may not happen. The more aggressive approach is to enter now on the breakout, but risk the candle closing back below resistance. It all depends on your strategy.
China Makes All Crypto Activity Illegal
Bitcoin and Ethereum tumbled Friday, with traders rattled by tough talk out of China.
China has been banning crypto since 2013, alternately eliminating and then allowing crypto activities in an endless bout of schizophrenia that would make Harvey Dent look sane. Earlier this year, China’s ban on mining sparked a huge sell-off. Interestingly, this ban has an even wider range of implications but has been far less impactful. All services offering trading, order matching, and derivatives for cryptocurrencies are now strictly prohibited. Banks and non-bank payment institutions are no longer allowed to offer any services related to cryptocurrency. If there were any investors or participants in China hoping to avoid being shut down, this ban seems like the final nail in the coffin. Considering China’s history of censorship around search engines, social media, messaging apps, news stations and more, their move against Bitcoin and crypto technology is far from surprising. Other than a small dip before the weekend, the market is giving off the impression that China’s involvement or lack thereof is barely worthy of the news. If anything, it is behavior like this that strengthens the Bitcoin story and reminds us why we love the asset in the first place.
Huobi Outlines Plan For Chinese Investors
Hupbi is a popular Chinese crypto exchange that is dealing with China's latest crackdown on crypto related activities. They are taking an active effort to protect customer funds and make sure that they are accessible through the end of the year.
“Customers will be able to transfer their assets to other exchanges or wallets over the next few months. Specific measures and operating rules will be outlined in future announcements.”
Warren Buffet’s Granddaughter Dives Into Crypto
One man’s trash is another lady’s treasure. In this case, that treasure is crypto. Warren Buffet believes crypto is “one big scam,” but that "scam" has helped his granddaughter make ends meet during Covid-19. Nicole Buffet is an artist that relies on galleries and art shows to sell her work. These activities ground to a half during the pandemic, so she was unable to make money until she discovered NFTs. By selling NFTs of her work, Nicole nearly quadrupled her typical income.
I don't expect this to convince him of the benefits of cryptocurrencies and the blockchain - he is set in his ways and nothing will change his mind. At least it is crystal clear ti a member of his family that he has totally missed the mark.
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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.