The Wolf Den #352 - Maximalism Strikes Again
Bitcoin Thoughts And Analysis
After another massive weekly close, Bitcoin has its sights set on the all time high. There is very little resistance, if any, between here and that level. I expect a bit of consolidation and then a push through, although nothing is certain in trading, especially with Bitcoin.
We have lower time frame bearish divergence all of the way up to the 12 hour or so, but also likely hidden bullish divergence to follow. We almost always see this after a major push, so for me it is not of major concern, but could indicate we see a bit more retracement before a push. Everything looks bullish.
WEEKLY CHART
Nice. This week's candle close was the HIGHEST IN BITCOIN HISTORY. Even though price reached $64,899, this was on a weekly wick, with the close slightly below 60K.
On the weekly chart the only resistance left is the all time high.
The weekly candle was also another bullish monster. Interesting, because in the middle of the week it looked likely to close as a shooting star, with a long wick up and small body. A reminder never to judge a candle until it closes.
I would watch for a retest of the previous highest close at $59,985.26 if you are looking for a potential entry. That would be a retest of a key former resistance as support.
DAILY CHART
Consolidating above resistance is bullish. You can see that price has also broken the last key level before all time high on the daily chart. No reason for price not to retest the highs again, but you never know.
Altcoin Charts
BITCOIN DOMINANCE
As I have said before, charting Bitcoin Dominance is a bit of a "meme," because it is not a traded asset and therefore does not have orders on the books to create support and resistance. That said, we can still use the chart to visualize what is happening.
Simply Bitcoin is dominating.
As I continue to say, Bitcoin's strength is notoriously bad for altcoins on their Bitcoin pairs. They will likely continue to tread water against USDT, being pulled up by Bitcoin's rising tide. Once the Bitcoin move ceases and it consolidates, altcoins will catch up a bit, although perhaps not all of the way.
As you can see, Dominance has bounced hard and is likely to continue rising (no guarantees). If Bitcoin pushes through the all time high, we should see alts take another leg down.
Careful out there, now is not the ideal time to take risks.
Read The Bitcoin White Paper
If you are invested in cryptocurrency of any kind, now is the perfect time to revisit the Bitcoin White Paper, which is the foundation of EVERYTHING.
If you have not read it before, then stop what you are doing and consume it immediately.
If you have a friend that thinks they understands crypto but has never bothered to read this, stop what you are doing and send it to them.
Seriously, read the white paper!
Double Top
Each time Bitcoin approaches a new all time high, we start to hear inexperienced traders on twitter scream "double top" and I am forced to offer clarification.
A double top is just an idea unless the swing low between the two tops is broken to the downside.
In this case, that is $28,800.
Since a double top does not exist without a confirmation on the breakdown, it's not even worth discussing. It is a "potential" DT. Price would have to drop MORE THAN 50% for there to be a DT here.
The target is taken by pulling the depth of the pattern to the breakdown. On a linear chart, the target would be -$7,538.41. Yes, below 0.
On a log chart the target is debatable, but under 14K.
Conclusion. There is no double top. There is no potential double top. Even if there was you can't trade it until $28,800.
Learn the rules.
Tether Fined 41M
The charge is that Tether Internatinoal Limited make “untrue or misleading statements and omissions of material” related to USDT.
More from the article.
According to the statement, the regulator examined 26 months between 2016 to 2018 and found that Tether only had sufficient reserves to fully back USDT on 27.6% of the examined days.
“In fact Tether reserves were not ‘fully-backed’ the majority of the time. The order further finds that Tether failed to disclose that it included unsecured receivables and non-fiat assets in its reserves, and that Tether falsely represented that it would undergo routine, professional audits to demonstrate that it maintained ‘100% reserves at all times’ even though Tether reserves were not audited.”
The CFTC also says Tether dipped its reserve funds into the operational and customer funds of crypto exchange Bitfinex.
“The order also finds that, instead of holding all USDT token reserves in U.S. dollars as represented, Tether relied upon unregulated entities and certain third-parties to hold funds comprising the reserves; comingled reserve funds with Bitfinex’s operational and customer funds; and held reserves in non-fiat financial products. The order further finds that Tether and Bitfinex’s combined assets included funds held by third-parties, including at least 29 arrangements that were not documented through any agreement or contract, and that Tether transferred Tether reserve funds to Bitfinex, including when Bitfinex needed help responding to a ‘liquidity crisis.'”
North Vancouver To Use Excess Bitcoin Mining Heat
The city of North Vancouver has a plan to use excess heat from Bitcoin mining to heat buildings. Canada-based cleantech cryptocurrency miner MintGreen will partner with the Lonsdale Energy Corporation (LEC). The result of this initiative is to supply heat to residents of North Vancouver starting in 2022.
Just another way that we can dispel the absurd Bitcoin energy debate.
Indian Government Testing Blockchain Use Case
If this test run succeeds, the initiative may be launched across India.
One of the most common pieces of fake news in the Bitcoin space has always been "Indian bans." This is part of the normal FUD cycle that we see every time price drops.
This is the opposite! India is testing blockchain tech in an attempt to improve and streamline its logistics industry.
"On Oct. 15, the central board of indirect taxes and customs under the country’s finance ministry launched a pilot electronic cargo tracking system (ECTS) project based on blockchain technology. This aims to achieve secure documentation and GPS-based tracking of containers.
The test run is being carried out at the Inland Container Depot (ICD) of the Tughlakabad Import Commissionerate, which accounts for about 20% of the total tax revenues under Delhi Customs."
This would be huge for the adoption of the technology. Just another step...
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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.