The Wolf Den #36 - Bailouts And Bitcoin
Bitcoin Thoughts
Ignore the price of Bitcoin today, it's irrelevant.
Everyone should own at least a little bit just as an insurance policy against the corruption of our governments.
It's the best middle finger that we can give to the system. I have never been much of a Bitcoin maximalist, but my perspective continues to evolve. Bitcoin remains one of the best ways to protect yourself and your financial future.
Nothing has changed on the chart since Tuesday! Price continues to range sideways.
Here is the daily:
As I said, nothing changed. Still currently holding support, key levels are marked. It has stalled a bit, but really nothing to see here. The weekly and monthly are exactly the same as Tuesday! I would like to see price finally move up and stop retesting support over and over. The more it retests, the more likely it is to fail.
I remain in my positions.
Another Perspective On Covid-19 And The Shutdown
Udonis Haslem is a retired NBA player who both grew up and played his entire professional basketball career in Miami, FL. I have been a huge fan, as he was the star of the Florida Gators, the team that I grew up cheering for.
This article really captures the human side of sheltering in place for many less fortunate Americans. It's a great read and a really important topic.
Mt. Gox Victims A Step Closer To Being Compensated
The victims of the Mt. Gox hack are one step closer to finally being compensated for their losses. That's the good news. The bad news is that they may potentially sell quite a bit of crypto to compensate the victims. Further, most of the people who were hacked will be paid in BTC, meaning the current value would be exponentially higher than it was in 2014 when they were hacked. This will bear watching, depending on how much BTC is paid back and can potentially be dumped on the market.
COTI/BTC
This was the ONLY alt setup that I shared on Tuesday, beside the two that I was already in.
"COTI is sitting on a key support, so one could argue that there’s a good entry here with a tight stop. The safest entry would be a break of the top descending line, with a target of the depth of the descending wedge from where price exits."
This one absolutely exploded off of support and through resistance. I entered on the retest of the descending line as support and remain in the position.
Trading Horizontal Support And Resistance
I was working on a quick primer for trading horizontal support and resistance, but then remembered that Crypto Cred already had it covered in a great free video. This is definitely worth 30 minutes of your time, as it largely explains how to identify key areas of support and resistance - which is important for understanding my approach and the way that I view a naked chart. Once you get a hang of it, these areas will absolutely JUMP OUT at you, and you will be able to figure out where you want to take trades in a matter of moments. Then you can set your alarms and walk away - no reason to stare at price action all day!
The Wolf Of All Street Podcast Ft. Rob McNealy
Rob McNealy and I discuss how to prepare for disaster (which Rob has been doing for decades), why you can't trust the government, why the United States is the least prepared country to deal with COVID-19, the importance of eliminating personal debt and having a 6 month emergency fund, the value of gold, cash, precious medals and medications and why everyone should have a garden. Rob offers a multitude of valuable tips for everyone, from those who are completely unprepared for a global pandemic to those who have been preparing for a lifetime. This is an absolute must listen in context of current global events. Subscribe and listen!
Interview With Radio Cade - Father And Son!
The Cade Museum in Gainesville, FL has a popular podcast and they recently asked me to speak with them about my unique life journey and the value of Bitcoin. It was a great conversation, worth a quick listen if you are curious about my background and thoughts.
More importantly, they recently interviewed my father, who's even better at podcasting than I am! That podcast is linked below.
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Chart Requests
BSV/BTC
This chart looks good at the moment. Price broke out of a descending wedge after a major move up. It reversed up from a key demand area (blue channel) at around the 78.6% retracement level of the entire move up. That "should" be the end of the downside, but we all know that this is dependent on the market as a whole. An ideal entry would be a retest of the descending wedge top as support, but anywhere here looks decent if this chooses to continue up. The black line around .0301 is still a key resistance.
DIS (DISNEY)
I really don't know. The chart clearly shows a massive weekly candle (not yet closed) that bounced just above the target of the breakdown from that ascending blue support. That's really bullish. The candle is engulfing the previous one. That's also really bullish. There's still a lot of resistance up ahead.
Rationally, I just don't see it. Disney parks are CLOSED. I don't really care about the chart yet, I just can't bring myself to buy Disney stock in the midst of a global pandemic.
ENG/BTC
Weekly chart. I am sure that we could zoom in and find some local reasons to watch this, but this is a really ugly view. Further, ENG had terrible news about being viewed as a security, which started this more recent down trend. Those things combined make this a major avoid for me, although I am sure it will still be traded and have it's moments. It's still dropping on the weekly, and is close to potential price discovery for another fresh all time low. This has not had a green week in months. You can try, but it's definitely catching a falling knife, with no real bullishness.
ETH/BTC
I was more bullish on Ethereum than on Bitcoin before the major crypto drop on March 12th. That has changed to some degree, as Ethereum has continued to see more downside on the Bitcoin pair. That said, it is presently oversold on daily RSI (not shown) and is approaching a key are of potential support (the blue rectangle). If that area can hold, this could be a decent area for an entry. Still, it's a bit of a falling knife. EMAs on the daily here look terrible. All are curving down, with the 21 EMA crossing both the 50 and 200 EMAs bearishly in a death cross.
ETH/USD
While the ETH/BTC pair looks a bit mediocre, the USD pair looks a bit better. The daily shows a clear retest of the old descending channel as support, which I have shared before. The weekly shows a huge bull pennant or symmetrical triangle. I do not see a clear trade here for now, but the general outlook is positive.
KNC/BTC
Not really sure about KNC at the moment. Price has clearly entered a downtrend after the major move up. That said, the black line is local support, which held on yesterday's candle. Also, yesterday's candle looks like a reversal up, with the large down wick. This could be heading back up, just not convinced at the moment.
RSR/BTC
This is currently at a key level. Holding 3800 would be a start, although I would personally prefer to see a break of the descending line to show that price is exiting the immediate down trend.
TDOC (TELADOC HEALTH)
Not sure the chart is useful, as we know that TDOC is pumping because doctors are using it to meet with their patients while in isolation. That said, holding 148 on the chart is bullish, both MAs are pointing up and offering support, and price has bounced off of the ascending support and moved up. Pretty chart.
TRX/BTC
Does not look great at the moment, but a break of the descending line would be a solid place to start thinking about an entry. For now, it's in a down trend. A flip of 181 to support would be even better.
WIN/TRX
Pretty daily candle so far. If it can close above that rectangle, I would say that it is likely to keep going. Daily close is really key here. A close above that level should target the top black line first.
QQQ
The monthly chart is interesting. You can see a clear breakdown of the uptrend (blue line) although the month is not over. Price is sitting exactly on a key horizontal support right now, which will be interesting to watch at the monthly close. Price also held the 50 MA on this time frame.
Zooming in on the daily, you can see that price is still under the key level of resistance. So don't get too excited yet.
ZM (ZOOM)
Another one where the chart is somewhat irrelevant. Everyone is at home, they are using Zoom. Number go up!
From a chart perspective, anything above $129.83 looks good to me.
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.