The Wolf Den #368 - Let’s Talk About Ethereum
Bitcoin Thoughts And Analysis
MONTHLY CHART
The climb to the ascending channel highs is well underway. 6 figure Bitcoin, here we come.
DAILY CHART
What's not to love!? Bitcoin made a new all time high yesterday, on significantly increased volume with one of the most bullish candles we have seen. It narrowly missed forming a Marubozu Candle, arguably the most bullish candle possible. A marubozu occurs when you have the a massive candle with no upper or lower wick, indicating that price opened at the lows and closed at the extreme highs. Still, this candle is incredible, with a very small upper shadow.
Clearly we are in the "buy the dip" territory. The previous all time high is now likely support, so bidding that area is one approach. It was almost retested as support already, but front run by about $100.
I have been screaming from the mountaintop about this Bollinger Band setup for what feels like ages. As you can see, the bands were the tightest that they have been in months, indicating a sizable move and volatility were ready to return. That move was most likely going to be up. Price broke the upper band and is currently trading above. This means that the bands will likely expand upwards and that price will track the upper resistance. John Bollinger agrees - see the tweet below.
Altcoin Charts
A number of "dinosaur" coins seem to be pumping this morning. No surprise, right? I shared the ADA and LTC charts last week, showing bullish divergence at key support.
As I have discussed many times, in the past we would see Bitcoin move first, then large caps and dinosaur coins, then mid caps, small caps and repeat. This is the cycle, but not as obvious as it once was because there are so many new coins and different areas of the market now.
Still, when you see ADA, EOS and LTC moving, it's worth revisiting the idea.
ADA/BTC
I have shared this a few times. ADA has had one of the ugliest drops that we have seen during the past few months - the higher they go, the farther they can fall.
That said, price is at support and showed very clear bullish divergence with oversold RSI. My favorite setup. Also, people are saying ADA is dead, usually a sign that they are emotional and things are ready to turn around.
Watch for potential hidden bearish divergence to invalidate the bullish divergence. This is tremendous upside and very little risk - a close below support and you can exit.
ADA/USDT
I shared this on the livestream yesterday afternoon and we have seen follow through and a break out since. The first target is $2.47, the top of the wedge and a clear resistance from a previous all time high. If that flips to support, the all time high is the next target.
EOS/USD
Monster move from EOS, breaking through descending resistance and the top of the trading range on 2 large grey candles. This move will be confirmed with a close above the blue range today, and a retest of either the blue descending line or the range highs as support would be the ideal entries. $6.422 is my first target.
INJ/USDT
I have had an alarm set on this descending line for weeks, waiting for a breakout. Two days ago we had a fake out above the line but on significant volume. Today's candle appears to finally be making the move, although we need to see a close above. Target is $25, the previous highs.
LTC/BTC
No surprises here. I shared this idea in the newsletter last week and in the afternoon live stream yesterday. We had very clear and continued bullish divergence with RSI at the all time low, the strongest support on the chart. A break of the blue line would signal more upside, but this has endless upside and very limited downside. If it breaks support and closes there, you can exit with a small loss.
LTC/USD
I discussed this yesterday on the stream and it did not disappoint. Massive move on significant volume from LTC. Overhead supply should act as resistance and a first target, around $281. Now that we have the breakout, a retest of $236.49 as support would be safest entry.
How To Trade With The Trend
This is a great summary of the various approaches to trading and the strategies utilized within each to make money. I would consider myself a trend trader, having been a day and swing trader in the past. Longer trades with the trend suit my personality and lifestyle far better - this approach may work for you as well.
This is a good read.
The ETF Craze Continues
ETFs are all the rage. Now that Bitcoin Futures ETFs have been approved, firms are getting creative with their own submissions. Grayscale has made it clear that they want to convert their GBTC Trust to a spot ETF, but in the meantime they have filed for a “fund that would offer indirect exposure to bitcoin and other crypto assets through a Grayscale equity ETF.” Named the Grayscale Future of Finance Fund, GFOF will consist of U.S.-based and non-U.S. based equities, but not include any direct exposure to digital assets.
BlockFi has also filed for an ETF, alongside the many other novel approaches that we have discussed before. It is clearly ETF season.
FBI Warns About Crypto Scam
If anyone asks you to use a Bitcoin ATM to acquire Bitcoin and send it to them, you can almost guarantee it is a scam. Criminals are leveraging the newfound popularity of Bitcoin ATMs to fool unsuspecting victims. This is no different than mail scams, text scams, catfishing or other scams that have existed for years - it merely uses the ATM as the means of wealth transfer.
The FBI specifically noted that scammers have improved their methods and spend more time grooming their victims to up their chances of success. Technology is a double-edged sword. It is our job to protect ourselves and others, as bad actors will always be out there.
The Wolf Of All Streets Podcast Ft. Mark Yusko
Fan-favorite Mark Yusko returned to give an update on the state of crypto and where it fits in the context of global markets. Mark provided a thoughtful case as to why caution is necessary for the current market conditions. This episode includes a number of priceless tenets investors should consider regarding the crypto market and managing risk.
In this episode, Mark Yusko and I discussed:
Will Long-Term HODLERs Win?
The Emotions Of Taking Profits
Price Is A Liar
Taxing Unrealized Gains
The Solution To Debt
Gaming The Monetary System
Why Are We At All-Time Highs?
The Truth Behind The Futures ETF
Sustaining The Bull Run
Opt Out Now
Mark’s Top Picks
Hope For The Future
This episode is sponsored by: SORARE and HEDERA
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