The Wolf Den #358 - Psychology And Health In A Bull Market
Bitcoin Thoughts And Analysis
DAILY CHART
Very little has changed on the Bitcoin chart since the full analysis yesterday. We had a nice daily candle yesterday. Saturday and Sunday both had small hammer candles that bottomed at support, so Monday's big grey candle was confirmation of the local reversal.
Nothing to see here, honestly. At this point we need to see a break of the all time high again to signal price is likely to head up. Altcoins should likely be the immediate focus.
Altcoin Charts
DOGE/USDT
Clean and simple setup. Breakout through descending blue line signals an end of the down trend. And we had major volume on the break, which is what you want to see. Yesterday's sell off sent price down for a nearly perfect retest of resistance as support. Target is the top of the pattern at $.3517.
ETH/USD
Ethereum had its highest close ever on the daily chart yesterday against USD. A few days ago, ETH almost made a new all time high, but was ultimately rejected and did not even manage it's highest close.
The only resistance on the chart now is the all time high. After that it is blue skies and price discovery ahead. The safest trade is to wait for that break and try to buy the retest as support, or to buy the break and add to the position on the retest if it happens.
Either way, this looks quite ready to make an explosive move if it can just clear that line.
MATIC/USDT
This is not a trade yet. It JUST REACHED the target of $1.79 that I have been talking about for ages. That said, a break of $1.79 would trigger another entry, targeting the all time high at $2.70. We are at resistance now, so you need patience and to make sure that the $1.79 line is cleared first.
For those trading this, great job. Target hit.
SUSHI/USDT
Sushi has been disappointing, failing to make the huge gains that many expected during the last altcoin run. That presents an opportunity on a coin that is fundamentally sound and setting up for a nice potential move.
First, we had the breakout on the left of the chart which still has a target of $22.537, so it is important to zoom out and keep that in context.
Now we have a nice setup (not signal, of course) with a clear ascending triangle. We have equal highs and higher lows, consolidating towards resistance at $11.966. The trade is a break and/or retest of that line. The target based on the measured move is shown in red.
If price drops a bit, buying another higher low could be a nice entry as well, with a tight stop below support.
There's a lot of potential here, but remember there's no trigger yet.
Legacy Markets
BKKT (BAKKT)
This is NOT A TRADE! Just a crazy chart worth sharing.
Remember when BAKKT was the talk of the crypto world years ago, because it was a signal that institutional adoption was inevitable? That did not happen at the time, but they did a massive deal with Mastercard today (news section)... and their newly trading stock did this...
I would not buy BAKKT here after a major pump. I just wanted to share this to illustrate the power of crypto news. Mastercard opening their doors to all of their merchants is massive, and BAKKT investors are reaping the benefits.
COIN (COINBASE)
Coinbase launched in April and has been a disappointing investment for short sighted traders with no patience. Good thing that isn't us, right?
As you know, I started buying Coinbase at the lows on the first day, right around the current price. This was about 15% of my final position, which I continually added to on the way down. My lowest buy were around $220.
In legacy markets, being underwater on a position for a few months is nothing - in fact, it is an opportunity to add significantly to a position you believe in. My cost basis is now around $260 and COIN is finally breaking out.
As you can see, price broke the range highs and came back down for a retest, as expected. The retest went deeper than support, which is common. Lines on a chart should be viewed as zones or areas. Regardless, now that price has exited this accumulation range, there is nearly no resistance ahead. This should easily be above $400 in the coming weeks and months, especially if Bitcoin continues to perform.
TSLA (TESLA)
This is not a new trade, just an opportunity to circle back and celebrate. As you know, I have been pounding the drum (again) on Tesla, at the breakout of the blue descending line. I was adding to my position between $600 and $700, like many of you. Now we have gone fully parabolic, with price making a new all time high and heading into discovery. If you get lucky enough for a retest of the previous high around $900 and a fill of the gap left on the daily chart yesterday, I would consider it.
The most heavily shorted stock on Wall Street for years... rekt.
The Market Cap Leaderboards Are Changing
After a clean break into all-time highs, Tesla has officially crossed the trillion-dollar market cap threshold, joining the ranks of Apple, Microsoft, Saudi Aramco, Google, and Amazon as the top companies in the world. The catalyst behind the move was the news that Hertz placed an order of 100,000 vehicles to build out its electric vehicle car rental fleet. The deal should bring Tesla a record $4.2B and mark the largest purchase of electric vehicles ever.
Including all assets into the market cap leaderboards, silver is number 7 at $1.38T, which is being closely followed by Bitcoin at $1.198T. It will only take a little more than a 10% rise in the price of Bitcoin for the digital currency to pass the world’s second most valuable precious metal. At the top of all assets by market cap is gold, sitting at $11.47T. Keep in mind, if money flows from gold to Bitcoin, the Bitcoin does not need to reach $11.47T - the two assets could meet somewhere in the middle.
Mastercard Moves Closer To Crypto
Mastercard is currently planning to announce a major partnership with Bakkt, a major digital asset firm, that aims to allow all of its banks and merchants the ability to offer crypto. Under its network, Mastercard currently has millions of merchants and thousands of banks. According to the press release, consumers will, “have the ability to buy, sell and hold digital assets through custodial wallets powered by the Bakkt platform and there will be streamlined issuance of branded crypto debit and credit cards.” Furthermore, with the partnership, Mastercard is looking to expand upon its reward programs so customers can have the option of earning crypto back instead of loyalty points or other less desirable rewards.
U.S Senator Sees Bitcoin As Possible Reserve Currency
In a recent interview discussing the future of currency, Senator Rand Paul (R-KY) said, “I've started to question now whether or not cryptocurrency could actually become the reserve currency of the world as more and more people lose confidence in the government.” He has endorsed Bitcoin in the past, and even accepted it for campaign contributions since 2016. While elaborating on his position, Rand Paul continued with, “the government currencies are so unreliable — they're also fiat currencies. They're not backed by anything. As people keep losing faith in their government's ability to handle problems and best represent their interests, Bitcoin and cryptocurrencies are set to benefit and be even more embraced.”
The Wolf Of All Streets Podcast Ft. Harry Dent
Harry Dent Jr. is considered one of the greatest financial commentators of our time. It is his belief that a major financial reset is right around the corner, largely due to the FED’s carefree and haphazard monetary policy. When this crash happens, on the top of Harry’s purchase list is our favorite asset, cryptocurrencies. Harry has written numerous bestsellers, runs his own firm, and has been right numerous times in the past. Listen to this episode and decide for yourself if you think the markets are setting up for an epic crash.
In this episode, Harry Dent Jr. and I discussed:
The FED is printing a trillion-dollar coin
Is inflation the problem?
When is the crash coming?
Is a buying opportunity coming?
Is hyperinflation coming?
What should happen with the market?
Will technology take our jobs?
The digitization of all finance
Faith in human nature?
This episode is sponsored by: SORARE
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