The Wolf Den #415 - Trading Quotes To Live By
Bitcoin Thoughts And Analysis
Bitcoin did effectively nothing this entire weekend. The good news is that it did nothing above 42K support as opposed to below, allowing altcoins to move with a bit of confidence. At this point, we really want to see 42K hold more than anything else.
There is nothing to see on lower time frame charts for now. Tight range and sideways chop.
WEEKLY CHART
Nice candle, need to see follow through next week. Bounced perfectly around $39,600 support, closed above 42K support, long wick down and green body.
Exactly what bulls wanted to see... for now. Still a long way to go.
TD Sequential has officially printed a red 9 on the weekly chart, a rare macro reversal signal on this indicator. The weekly rarely gets ugly enough to complete this 9 count, which can continue to 13 candles before a reversal. Also, we have seen these fail often in the past, so nothing is certain at all.
If you are a fan of this indicator, this is a very big buy signal.
DAILY CHART
MACD confirmed bullish divergence with both MAs and the histogram. The MAs also crossed bullish with the histogram crossing bullish as well. This happened a few weeks ago and price was sent to 52K. Something similar is in the cards here, according to MACD.
Altcoin Charts
There are quite a few promising altcoin charts at the moment. The caveat is that if Bitcoin makes a move, these setups will likely fail en masse. I would still be very careful, but things are looking up if Bitcoin remains boring or pushes up slowly.
ATOM/USDT
ATOM has been rejected three times at $44.80, the previous all time high and key resistance on the chart. To be clear, I would not buy this at the current price - it is at strong resistance. But this appears to be consolidation below a major resistance, which usually leads to a big move up. What you are looking for here is a break of that level and a close above. That would signal price discovery. A buy at the retest of $44.80 as support would be ideal.
LTC/BTC
I have made a few jokes on twitter about Litecoin dangling it's toes over the edge of a cliff, sitting at the all time low on the BTC pair on Binance.
Litecoin wasn't too thrilled, and bounced once again from the strong support at .00302. Now it is setting up for a serious reversal if it can break the descending blue line.
You do NOT want to see price going lower than it already has in the past few weeks. You do want to see a break of the blue line, targeting .007.
LTC/USD
Last summer, we had a powerful trade on Litecoin on the break of the blue wedge on the left. The entry was around $128 with a target just under $300, in the key supply zone shown. It played out almost perfectly.
Litecoin appears to be setting up for almost the same move again, testing a key area of descending resistance. A break should send price to $166, then $232, then back into that supply around $300. Take the levels as they come, if they do. Obviously need to see a break of the blue descending line on decent volume to confirm.
ONE/USDT
ONE looks similar to ATOM - rejection at the previous all time high and consolidation below. I want to see this break .38 cents and close above and preferably retest it as support. Then you are in price discovery for new highs. This is also finding local support at .33 cents.
Again, this is just below a major resistance, so buying now is risky.
ROSE/USDT
ROSE officially went into price discovery last week on the break of .46 on major volume. It has not retested this level as support, which is the trade that I would be looking for. It may NOT HAPPEN at all - you always take the risk of "missing out" on a trade when you try to buy support, but it's the safest play with the best risk/reward because it's easy to exit if support fails.
SCRT/BTC
SCRT has made huge moves the past week and has now broken a key resistance on the BTC pair. .000194 was a key resistance which has now been broken. Placing bids around this area to buy a retest as support is a classic setup, with a target at the next resistance around. .000365 - almost a 2x move.
Invest Like A Chess Player - 8 Steps Ahead
I wrote a blog hashing out some ideas shared in the newsletter. In this post, I discussed 8 predictions that could move the crypto market in the future.
Walmart Is Here
This is one of the most notable pieces of news that we have seen in the crypto market - ever.
Key points from CNBC
"Walmart appears to be venturing into the metaverse with plans to create its own cryptocurrency and collection of NFTs.
The big-box retailer filed several new trademarks late last month that indicate its intent to make and sell virtual goods.
In a separate filing, the company said it would offer users a virtual currency, as well as non-fungible tokens, or NFTs."
Walmart filed seven separate "intense" applications, covering a slew of virtual goods and a future cryptocurrency of their own. Since Facebook announced their rebrand to "Meta," huge companies have been scrambling to prepare their presence in the virtual world. It appears Walmart is poised to replicate their in store experience in the metaverse.
Huge.
US Government To Discuss Mining On January 20th
The world has taken notice of cryptocurrencies in the past two years, with a particular focus on the environmental impact of blockchains, The US Government is clearly taking this issue seriously.
“The Subcommittee on Oversight and Investigations of the Committee on Energy and Commerce will hold a hybrid hearing that includes both in-person and remote attendance on Thursday, January 20, 2022, at 10:30 a.m.”
"The investigation is titled “Clearing Cryptocurrency: The Energy Implications of Blockchains,” and in particular, the Subcommittee is interested in learning about the energy consumption of blockchains, with the premise that they may create environmental concerns in the future. On the scheduled day, the hybrid hearing will also live stream on YouTube."
This will be worth watching.
The Case For Bitcoin In Ukraine
This is an exceptional opinion piece from Bitcoin Magazine on Bitcoin adoption in Ukraine and how case study can be used as a template for other nations. There's no point in me summarizing... give it a read.
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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.