The Wolf Den #367 - Mess With The Bull, Get The Horns!
Bitcoin Thoughts And Analysis
WEEKLY CHART
After showing some indecision for the past few weeks, Bitcoin invalidated the shooting star candle and spinning top with a bullish candle. Now we are already seeing follow through, although we have 6.5 days left in the current weekly candle. As you can see, price is pushing back through the previous all time high on the way to the more recent highs. Everything on the weekly continues to look bullish.
DAILY CHART
It does not not get much cleaner than this! Price approached resistance yesterday, broke it right at the daily open and has continued up. It will be interesting to see where the day ends, but today's volume is already greater than yesterday's with 13 hours left.
Bollinger Bands have tightened on the daily to levels seen infrequently. As I mentioned, price has held the centerline as support, meaning that the next move should be to the upside. We are seeing that now, with price pushing the upper band as resistance. Usually this leads to expansion of the bands and price tracking the upper resistance. This looks very bullish.
Bottom line - Bitcoin continues to push up, refusing to retrace in any meaningful manner. It looks like you should consider buying any dips that come your way. The key now is a break of the all time high - always be cautious at resistance, which is basically where we are now.
Altcoin Charts
The altcoin market has been fun and should continue to rise with time, especially on the USD pairs. That said, Bitcoin is pushing for a new all time high and altcoins are temporarily suffering on their BTC pairs. If BTC pushes through all time high resistance, expect this trend to continue. This is a time to be very cautious about entering new altcoin trades, unless you are adding to investments and buying dips, knowing they can dip further.
Again, USDT pairs largely look fine, an indicator that Bitcoin is likely about to rip up and carry the market behind it. In this scenarios, Bitcoin generally outperforms alts. You are fine in alts, no problem - it's just not the best trade in those times.
BNB/BTC
BNB had beautiful breakouts through multiple descending resistance levels, also breaking resistance at the EQ of the large blue trading range. Price made an ugly shooting star candle up top yesterday and has continued down today, so this is a very risky trade. That said, we have a perfect retest at the moment of descending blue resistance. If this does not hold, I would be watching for the channel EQ (equilibrium, the dashed center line) for an entry.
BNB/USDT
This has followed the idea that I laid out closely and has nearly hit its target at the all time high, just under $700. If you are not in already, then the next trade would be a flip of this all time high to support. I would expect some resistance here before that happens, so either look to buy dips or confirmation of price heading into discovery.
VET/USDT
VET looks to be flipping a key resistance at .157 to support. You can see the first entry at the arrow, and this has taken a textbook path heading up, flipping key levels of resistance to support. A clean flip here should send price to much higher levels, likely the all time high around .279 with some bumps along the way. The key is seeing .157 hold.
A DeFi Warning From CZ
If trading, lending, staking, or yield farming in DeFi is your thing, I suggest you read this article on how to stay safe. While there is a lot of money to be made, one mistake can leave you broke if you are not careful. CZ, the CEO of Binance, likely understands the risks better than anyone, having a birds eye view of the entire crypto space. I highly recommend you study his blog post if this is your thing. You are playing with fire, take the steps to avoid getting burned.
Mayors Are Endorsing Bitcoin
During the Florida Blockchain and Bitcoin Conference in Tampa, Florida, the mayor of the city made a special announcement that she will accept her pay in Bitcoin. Jane Castor, the newest of the mayors taking the leap of faith, is also joined by a mayor in Tennessee who is exploring payment options in Bitcoin. Government adoption won’t happen overnight. It will be a grassroots movement, starting from local politicians. You love to see it.
OpenSea Hits $10B in Volume
If there was any doubt that NFTs are here to stay, this should settle the debate. A single platform has done 10B in sales, a massively significant milestone and a sign that adoption is real. As NFTs become more accessible to the mainstream on platforms that are far easier to use and understand than OpenSea, we will likely continue to see interest explode.
We are still early.
Thank You So Much!
The main reason that I continue to write newsletter and create content is because of all of you. Every day, I am afforded the opportunity to share what's on my mind and push the needle of crypto mainstream adoption forward ever so slightly because of your support. Over the weekend, I found out that I was selected one of the five “Top Financial Influencers” at the 2021 Benzinga Global Fintech Awards, alongside some incredible other financial minds, including Chamath Palihapitiya and Jaspreet Singh. I can say it until I am blue in the face, but thank you again, it means so much.
My Recommended Platforms And Tools
This is where I trade with leverage and can also trade spot with no fees.
This is where I spend my days teaching and learning! Our Discord group is a one stop shop for everything you need to learn to trade and control your emotions. Feel free to DM me on Twitter or respond to this email for questions. Code Wolfsden50%off for a 50% discount on the first month.
This is where I invest, commission-free. They now let you earn interest on your Bitcoin held in Voyager, so you can compound while trading. Not only that, you’ll get $25 in free BTC when you download & fund.
Rewards Code: WOLF25
Mining for everyone! You can buy an ASIC and have it set up at a destination of your choice by them, and you only pay the electricity cost. Absolutely awesome.
I use RoundlyX to buy small amounts of Bitcoin every single day. They automatically round up my credit card purchases (with 10x multiplier) and invest them in crypto. Absolutely brilliant. Passively invest money you don’t need without a thought. Further, they have integrated with Voyager (see above) to offer commission-free purchases.
Rewards Code: WOLF
Concierge Phone Service for Americans that protects your from SIM Swaps and other phone related hacks. I cannot stress enough how amazing this service is.
Subscribe to my YouTube channel for free daily content.
Follow me on Twitter at @scottmelker. This is where I am constantly updating my trades and sharing ideas.
On-chain and fundamental analysis, research, predictions and indicators, all in one place. Highly recommend.
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.