The Wolf Den #338 - Look How Far We Have Come
Bitcoin Thoughts And Analysis
WEEKLY CHART
Nobody said this would be easy. The battle for 42K continues, with the week starting off on a noticeable down note. Nothing to judge yet on the weekly, but clear that bears are not done testing this level yet. We will see where the weekly lands in 5 days.
DAILY CHART
I am still waiting for a break of the blue line to start talking about a real reversal to the upside. For now, price is struggling back around the top of the old range, which is not ideal. We want price trading back above the red area ASAP.
I often discuss the importance of waiting for confirmation before taking a trade. As you can see, RSI was ultimately rejected at descending resistance, even though it looked likely to break out yesterday morning. This breakout would be a solid signal that price is likely to follow.
Remember, if price drops below the black line around $40,500, we will likely have bullish divergence on multiple time frames, with a lower low on price and a higher low on RSI.
SIDE NOTE - Altcoin are still looking shaky, nothing to share here for now!
Learn LETR To Save Millions
LETR is a new term for me. It stands for lifetime effective tax rate and is the ratio of the amount of taxes you pay over your life vs. your total income. It should be your goal to bring this ratio down as low as possible to minimize what goes to Uncle Sam and maximize what you keep. Billionaires are masters of this - they will find any legal way to pay as little as possible in taxes.
The thread linked above is where you should focus your attention. Over your lifetime, you will fall into 1 of 3 general tax categories - early life, mid-life, and late-life. Understanding where you are on this ladder and how your income will change can literally save you millions if you manage your money properly.
Early on, take advantage of low taxes, do everything in your power to break free of debt, and unload gains into IRAs. The mid-life strategy is focusing on deductions to reduce the amount of money that leaves your account. Your golden years in income are your later years in life, when you focus on estate planning and your legacy.
Taxes are a complicated journey and I can't recommend enough having an accountant you trust, especially if you are a high net worth individual.
Coinbase Allows Paycheck Deposits
Coinbase users now have the option to load up their accounts via direct deposit. “Coming soon, customers will be able to deposit any percentage of their paycheck into their Coinbase account in crypto or USD.” The reasoning is to reduce the constant bank transfers that are time-consuming and inconvenient. This feature is a great way for anyone to get into dollar-cost averaging or simplify their process. It should arrive in the next few weeks.
China Is Banning Crypto-Related Sites
This is just sadt. CoinMarketCap and CoinGecko have now been censored by the Chinese government. This is an all out attack on crypto in the form of bans and censorship. These two sites are always among my top picks for newcomers and advanced participants to safely explore information in the crypto space. China's citizens are being prevented from both participating in and learning about what is taking place around the world.
Bitcoin Supply Shock, USDT Supply Glut
Bitcoin supply on exchanges has reached levels not seen since May, 2019, at a near historic low.
"On-chain analytics provider Santiment has reported that the supply of Bitcoin sitting on exchanges has fallen to levels not seen since May 2019. This is usually considered bullish as investors take BTC off exchanges when they’re in a position to hold and are not interested in selling.
Santiment called it a “good sign of sell-off risk decreasing.” Bitcoin prices have been falling this week in the wake of a renewed crackdown in China and another round of FUD (fear, uncertainty, and doubt) that followed it."
At the same time, supply of stablecoins on exchanges is the highest since June.
"Santiment also observed that the amount of stablecoins, specifically Tether, residing on exchanges has not been this high since June, suggesting that buying side pressure could be increasing. There is 17.6% of the entire supply of USDT sitting on trading platforms at the moment, according to the analytics firm."
Supply of Bitcoin down with available USDT up (usually means demand for crypto is up)... you know what that means.
The Wolf Of All Streets Podcast Ft. Dan Tapiero
Dan Tapiero is a renowned macro investor and asset allocator. A few years ago, he took the orange pill and went all-in on crypto, creating a fund that he believed would capture 30x growth in 10 years. 10T was born, based on the idea that crypto would hit a 10 trillion dollar market cap. Dan now believes that his original prediction was too low. In this episode, Dan thoroughly explains his investment philosophy and how he approaches the crypto space.
In this episode, Dan and I discussed:
Dan’s portfolio strategy
Bankrupt or buying opportunity?
A 30x in 10 years
Cryptocurrencies are hard to trade
What are regulators doing?
Crypto is the last free market
Digital value is the future
The metaverse is here
Gold, bonds, equities, and Bitcoin
What is Dan excited to invest in?
This episode is sponsored by: SORARE.
Where fantasy meets reality. Collect, trade, and earn weekly prizes.
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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.