The Wolf Den #363 - Stablecoins Are Center Stage
Bitcoin Thoughts And Analysis
4-HOUR CHART
After making a new all time high, Bitcoin trolled everyone and failed to maintain momentum. It has been consolidating since - until today. As you can see above, Bitcoin is breaking through descending resistance on increasing volume (over the past few candles). This should signal that it is ready to at least retest the recent highs. A break above the all time high would signal that price discovery is likely and much higher targets are in play.
That's it, no need to go into higher timeframes again today - you have seen them before!
Altcoin Charts
DOT/USDT
I have shared a number of DOT setups of late, and on the previous bull run up to all time highs. Yesterday, DOT made a new all time high on the USDT pair and managed to close slightly above, avoiding a bearish SFP. Price is currently trading below that level, so we want to see it back above, but we technically have a shot now at price discovery. If you are not already in DOT, this area could be a nice entry for a ride into clear blue skies. It is slightly risky, since price has already moved significantly, but as I have said before, most competitors have already pumped and DOT was lagging. This has Solana type potential.
SUSHI/USDT
I have shared this setup before, as you can see from the black line that I drew with a proposed path to roughly $16. I believe that target is now officially in play, as price has broken the horizontal resistance at the top of the ascending triangle. The original setup had a slightly different ascending support, but all that matters in an ascending triangle is a series of higher lows. We have that, as you can see. The ideal entry now is a retest of $11.966 as support, although that may have already been front run or may not quite happen at all.
Squid Token Mayhem - Buyers Beware
Playing off of the rise in popularity of the hit Netflix show Squid Games, an unaffiliated scam token called $SQUID rose from $.01 to $2,861.80 in about one week’s time. Investors continued to pile into the coin that promised the arrival of a play-to-earn game inspired by the show, but didn’t know there was no way to sell the token. Major media outlets began to cover the coin because of its parabolic gains, but the hype ended up being the Achilles heel. An anti-dumping mechanism was implemented into the protocol, but ended up being an anti-selling mechanism. Investors were trapped, because selling meant trading into another coin that wiped away all of the profits, and so the inevitable happened and the coin crashed to $.003 at the time of writing.
Not all restrictions on investors selling raise alarm bells, but some certainly should. The spectrum varies drastically. In some instances, being locked can be a good thing - like staking, delegating, or collecting interest. In other scenarios, when money is locked on a platform that doesn’t have an exit option, it is always bad. The reality of the $SQUID situation sucks, but the burden is on the investor to make sure they understand what they are getting into. Anytime people rush into something, it’s probably a good time to slow down and do extra research. This requires reading up on the purpose of the locking features and finding out what problem or purpose the lockup is solving. If any coin seems too good to be true, it almost always is.
Vitalik Buterin Supports Crypto Cities
One of the more interesting and less discussed innovations in the space is the rise of crypto cities. Vitalik Buterin, the creator of Ethereum, released an in-depth blog post on why he supports the idea of individual states and cities creating their own unique governance models through crypto.
CityCoins was mentioned in the blog and is a leader in assisting the creation of city coins through a fair and open-source model. They currently have "Miami Coin," supported by Mayor Suarez and have been able to raise millions for the municipality.
These projects are yet to gain much traction, but every solid idea starts somewhere. I agree with Vitalik that unique city coins could be a promising addition to society. The next time you hear about a cryptocurrency unique to where you live, I suggest you check it out. It may be a good chance to get involved in something early that could someday be as big as the innovations the news cycles are currently focused on.
Aaron Rodgers Will Be Paid In Bitcoin
On the heels of arch rival Tom Brady, Aaron Rogers has joined the crypto currency space, partnering with Cash App to receive part of his salary in Bitcoin. They are also giving away $1M in Bitcoin as a part of the announcement, clearly trying to woo the general public to Cash App to transact and invest in Bitcoin.
Another massive step towards mainstream adoption.
The Wolf Of All Streets Podcast Ft. Brett Gibson
Nearly a decade ago, a brave VC took a million-dollar leap of faith and made a bet on a small company called Bitbank. Fast forward to today and that investment turned into a $600 million return, as Bitbank became Coinbase. Brett Gibson, a general partner from the firm, came on to tell the story and better explain how venture capital is flowing into the crypto space at break-neck speed.
In this episode, Scott Melker and Brett Gibson discussed:
The first investor in Coinbase
Money is flooding in
What do VC investments look like?
What is VC interested in?
Why Brett Gibson likes Bitcoin
Gearing up for mainstream adoption
The challenges of investing
What’s the next big investment?
The polarity of institutional involvement
What will be the next major public listing?
What will it take to be bearish?
This episode is sponsored by: SORARE and HEDERA
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