The Wolf Den #340 - Twitter Adding NFT Verification
Bitcoin Thoughts And Analysis
MONTHLY CHART
The monthly candle closes tonight, so it is worth revisiting this chart, although it can still change today. As you can see, even with the drop throughout September, price is still holding the EQ (equilibrium, center dashed line) of the ascending channel as support. Assuming this happens, 6 figure targets at the top of the channel are still expected based on this chart. When in doubt, zoom out.
DAILY CHART
Bitcoin has seen nice movement up since the daily close last night, but is still chopping sideways and doing very little. I am watching for a break of the descending blue wedge to signal that price is ready to head back up. Until then, there's nothing to do here in my mind but watch and wait. 42K is still the key level.
RSI is once again attempting a breakout. The close yesterday was still below resistance, this is once again unconfirmed until the daily close.
4-HOUR CHART
The low time frame bearish case that is being made across twitter is that this is a bear pennant. We definitely have a symmetrical triangle, with price currently testing the top as resistance. That said, a bear pennant or flag generally should not retrace more than 50% of the move or the flag pole, and this bounced around 61.8% initially. Either way, the triangle is valid, so it will be interesting on low time frames to see which way it breaks.
Altcoin Charts
Altcoins are looking very shaky at the moment, with Bitcoin Dominance rising and ALT/BTC pairs dropping across the board. This could be an indication that Bitcoin is preparing for a meaningful move.
WOO/USDT
This was a chart request yesterday, which I took note of to check again in the morning for the newsletter. As you can see, price formed a large symmetrical (almost, the bottom is a bit flat) triangle, which could also be considered a massive bull pennant with a flag near the lows from a few months ago.
Price has broken resistance at the top of the triangle and retested that descending blue line as support. Bullish. The target, based on the length of the flag pole is shown, measure from the breakout. I always use logarithmic charts, hence why the green bar on the right is smaller than that on the left - it is based on the percentage gain. The best entry was the retest around .72, but this still looks like it has a lot of room to rise.
Chart Requests
Here is the weekly chart requests stream. Thanks for making requests - back at it again next Wednesday!
Compound Finance Bug
Compound finance is a popular DeFi lending protocol that allows users to earn interest on their cryptocurrencies. Late last night, a community-designed upgrade took place that contained a strange bug, putting about $80m worth of compound at risk. The upgrade’s purpose was to, “split the COMP distribution to liquidity suppliers and borrowers based on governance-set ratios instead of the previous 50/50 share model,” but that didn't happen.
In short, it was an upgrade designed to distribute out some rewards but instead gave away the whole farm. The upgrade, “mistakenly allowed some users to claim as much as about 168,000 COMP tokens already, worth around $50 million.” The bug is capped at $80m and no user positions are affected. Basically, a pool of project funds are being depleted by some random (very lucky) users. As of right now, there is no way to stop the bug. Compound is a community-run protocol and any changes to the protocol take about 7 days. Developers are searching for ways to kill the bug, but as of writing this, a solution has yet to be found.
Elon Musk Tells Governments To “Do Nothing.”
During a recent interview at a coding convention, Elon Musk spoke with Kara Swisher about cryptocurrencies. He had the following thoughts.
Swisher - So is this the right thing for governments to do, to take control of it? Is it possible?
Musk- It is not possible to destroy it, it is possible for governments to slow down its advancement.
Swisher - What should the U.S. government do?
Musk - I would say do nothing. I would seriously just let it apply…. You know governments have a habit of editing the money database, they can't keep their hands out of the cookie jar.
As simple as his advice is, it is correct. Governments feel compelled to regulate everything, especially if it is a threat. If anyone knows this it is Musk, who has been pushing the pace of innovation under the regulatory microscope since day one. Cryptocurrency challenges the status quo for most government, so the initial knee jerk reaction is to control or kill the innovation. We all know this is short sighted, because this is the technology of the future.
Tether And Bitfinex Score A Big Win In Court
The world has patiently waited to find out if Tether and Bitfinex are guilty of market manipulation. As of yesterday, half of the class action claims against the two entities have been dismissed. The lawsuit facing the two is major. There is over $1 trillion in potential damages and other major exchanges have been dragged into the mess.
Below is an official statement from the Tether team regarding the court win.
“This case is doomed. This is unsurprising given that plaintiffs’ claims are meritless. Bitfinex and Tether look forward to litigating this case and won’t settle what remains of the plaintiffs’ baseless claims. Litigation will expose this case for what it is: a clumsy attempt at a money grab, which recklessly harms the whole cryptocurrency ecosystem.”
The Wolf Of All Streets Podcast Ft. Muneeb Ali
Bitcoin is the world’s most trusted, secure, and reliable digital asset network. These attributes create challenges for developers trying to keep up with the parabolic innovation on other blockchains. In this episode, Muneeb Ali discusses the efforts being made by developers and the need to quickly pool their skills to improve the ecosystem around Bitcoin. He believes that everything being built on other chains can be integrated on Bitcoin, a more solid base for a free financial future.
In this episode, Muneeb Ali and I discussed:
Why DeFi on Bitcoin?
How do we inspire the mainstream?
How can we improve Bitcoin?
What can be built on Stacks?
Risks in DeFi
Creating a new Bitcoin narrative
Taproot is coming
What does a “Bitcoin Standard” look like?
Can we end tribalism?
Study the developers
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