The Wolf Den #348 - Will There Be More Than 21M Coins?
Bitcoin Thoughts And Analysis
WEEKLY CHART
Bitcoin continues to push into the last remaining supply zone on the weekly chart, an area of expected strong resistance. The highest weekly close ever was around $60,000, so price is quite close to breaking that.
As you know, last week we made a higher high, meaning that we should absolutely retest the all time high, based on the chart.
That said, it will take serious volume and conviction from bulls to push through here, so a drop and some consolidation is a likely scenario.
DAILY CHART
Bitcoin close above daily supply yesterday and is currently retesting it as support. Yesterday's candle was VERY bullish and also invalidated any potential bearish divergence with RSI, as you can see here below.
The bottom line at this point: even if we see some consolidation or a drop, Bitcoin has done everything to indicate that a retest of the all time high is extremely likely.
Altcoin Charts
Altcoins look awful. No surprises here, this has continued to be a likely scenario with Bitcoin moving so aggressively to the upside. ALT/BTC pairs have looked bad for quite a while and that has not changed. Bitcoin Dominance has risen. There are no trades worth discussing at the moment, but here are a few interesting charts.
Alts will likely catch up when Bitcoin chills out - no reason to panic.
ETH/BTC
After breaking above the EQ of this blue channel, Ethereum "should" have targeted the channel highs. It almost got there, but eventually dropped and broke support again. That means that the target is the channel lows, in the circle. As proven by the fact that it failed to hit the high, it's equally possible it fails to reach the lows! Charts are just ideas, nobody can tell the future. Regardless, this chart is ugly at the moment.
LTC/BTC
Litecoin just made an all time low on the Bitcoin pair. That should illustrate just how powerful Bitcoin can be when it makes a substantial move. This is going all of the way back to 2013.
That said, if price does close back above the previous all time high, this could be a signal that alts are ready to reverse. I would not buy it, personally, but there are people who love to catch a falling knife with a relatively tight stop loss.
Last time it was at this price, it went on a face melting run (left of the chart), but those were different times and history certainly does not have to repeat itself.
For now, this is potential price discovery... down.
Take A Loan Against Your Coins
Two weeks ago, I took some time to lay out the case for taking a loan against your Bitcoin. I extended these thoughts in my blog for a full analysis of the pros and cons of taking a crypto loan. In the article, I described how to take the loan, what to expect, why you should consider it, what the LTV ratio is, and the risks involved in loans. It includes effectively everything you need to know.
One thing you may not know about loans is the risk of loss when downside volatility occurs in the market. This is one of the less-discussed aspects of loans, but extremely important to consider. If the price of your collateral drops significantly, you will be at risk of a margin call and liquidation of assets if you do not add more coins as collateral. I covered this extensively in the blog, along with everything else mentioned above. If you are considering the option of a loan, I highly recommend you begin your diligence with the link above.
Can Coinbase Surpass Tesla?
Bill Miller believes that it is possible for Coinbase to become bigger than Tesla
Billionaire investor and market commentator Bill Miller revealed that he thinks Coinbase can surpass Tesla in value in a recent interview. As of now, Coinbase has a market cap of $54B, with Tesla at $784B. Coinbase’s market cap would need to rise 14.5x from its current position to catch up to Tesla, a feat that would take a years to accomplish. Miller is certainly a voice worth listening to, as he bought Bitcoin for an average price of $500 and Amazon for $17. Below are his thoughts on Coinbase from the interview:
“Coinbase could be the default position for growth investors. Tesla has a $750 billion market cap in a mature industry that is never gonna grow very fast, just because it hoovered up the technological change. Coinbase could easily have a $500 billion or $1 trillion market cap as a disruptive company in a rapidly growing, changing industry.”
“If you buy Coinbase or anything else, don't get too worried about a quarter or two, or even a year or two. If you're going to get shaken out by how the stock trades in three months or six months or nine months, you probably shouldn't own it.”
FTX And NFTs
You can now buy Solana NFTs with USD on FTX’s regulated marketplace, and Ethereum support is on the way. This is big. Anyone who has used OpenSea knows that it's difficult for anyone who lacks experience transacting in crypto, because you have to have a basic level of understanding on wallets and Ethereum. Buying an NFT on FTX eliminates these barriers - you can do it with USD or a credit card. This is how mainstream adoption happens.
The Wolf Of All Streets Podcast Ft. Shaan Puri
Shaan Puri is a prolific thought leader in the business world. He recently took a play from Bill Gates’s book and took a weeklong deep dive into crypto, completely removed from everything else in the real world. After this journey, Shaan recognized a lot of truths both good and bad about the space and came on the show to share his raw and uncut opinions on everything from NFTs to growth hacking to top signals and the metaverse. This tell-all episode reveals a lot about us and our interests as investors that may not be obvious to even experienced veterans.
In this episode, Shaan Purin and I discussed:
Shaan takes a lesson from Bill Gates
Shaan needs more Ethereum
NFTs and networking
Minting 5 minutes of fame
What is the future of NFTs?
The metaverse future
The importance of status symbols
Fighting top signals
Diversification is for losers
How did Bitcoin go from 0 to 1
Thanks to SORARE for sponsoring!
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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.