The Wolf Den #347 - Snowden Speaks Out On CBDCs
Bitcoin Thoughts And Analysis
WEEKLY CHART
Another beautiful weekly candle, confirming the breakout through both the descending blue resistance and $52,944, confirming a higher high and invalidating the bearish market structure (lower highs). Price is currently pushing into the last major resistance on the weekly chart, the blue supply structure.
DAILY CHART
Bitstamp saw insane volatility in a matter of minutes yesterday, as one massive sell order sent price rocketing down and right back up. That's why the candle looks so insane on this chart. Regardless, price is pushing into resistance on the daily chart, the red zone. A close above would be extremely bullish and would show a complete retrace of the dump from May 19th which was initiated in this area.
RSI is once again about to tap overbought and needs to continue up to avoid any bearish divergence. This is a key moment for Bitcoin, in my opinion. It has pushed into major resistance on most time frames, so we need to see follow through.
The Bollinger Bands are massively expanding, with price tracking the top band. This is very bullish.
Altcoins
As I have been warning for a couple of weeks, altcoins are looking extremely weak on their Bitcoin pairs. Right now, it is better to focus on Bitcoin and be patient, unless you are looking at USDT pairs and willing to largely underperform Bitcoin. Part of being a good trader is knowing when to sit on your hands and do nothing. For me, this is one of those times.
This does NOT mean that I am selling off positions, it just means that I am willing to watch and wait. Altcoins tend to catch up when Bitcoin is finished.
Could Bitcoin Be Worth $1 Million?
$1 million Bitcoin is certainly possible, but not worth betting on at the moment. Nonetheless, observations like this are interesting to consider. The world population is 7.75 billion and there are only 21 million Bitcoins. The comment above only considers how Bitcoin would be allotted to millionaires, but the reality is that everyone is buying this asset, both millionaires and working-class alike.
Satoshisperperson.com is a popular website that considers the world’s population and states that there are only 232,690 Sats per person, roughly worth $127.55. All Sats are scarce and millionaires that are late to make the leap will be paying a heavy price if the asset reaches a fair market value. This number could certainly be $1 million.
Ethereum Network Sees Massive Growth
Ethereum price and network data are growing together, which might be the beginning of a strong trend
Price has not recovered to the all time high, but that doesn’t mean that protocol metrics are under performing. On-chain metrics show that Ethereum is seeing a massive spike in activity, with the highest number of addresses created in one day since May 18. According to DeFiLlamma, a popular DeFi tracking site, the total value locked in DeFi is also currently at an all-time high, which is largely Ethereum based. It is my belief that price is lagging behind value. Be patient - it always catches up.
Bitcoin Network Settled 31B In A Day
"The bitcoin network settled a record $31 billion in a single day on Oct. 6, 2021. This marks a new all-time high for settlement numbers on the network. For some perspective, this represents a 40x jump in settlement value since the start of 2020.
Since then, however, there has been a noticeable drop in settlement value, reaching figures of around $11.6 billion in the days that followed. Still, it marks a strong rise for bitcoin usage since the start of 2020, where the figure was well under $10 billion."
This is what adoption looks like, and we are only scratching the surface.
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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.