The Wolf Den #416 - Keep Politics Out Of Investing
Bitcoin Thoughts And Analysis
There is very little to look at on the Bitcoin chart, as it continues to trade around 42K and test the range lows. Not much has changed since yesterday, although price has continued to float down on low volume.
Sharing the larger time frame charts at this point is redundant, so I will spare you the same ideas.
DAILY CHART
This is what I am watching at the moment. A daily close below $41,535 will likely end up forming a massive bullish divergence with RSI, coming out of oversold.
Remember, we need to see the close below that level, then a clear elbow up on RSI to confirm. Price could continue down, even if we get the close below. But it would take a serious move down for RSI to make a lower low.
Legacy Markets
KO (COCA-COLA)
A newsletter subscriber actually asked me to look at this last week. I finally got around to it and he was, indeed, correct. Coke has moved into price discovery for a new all time high, breaking the previous high at $60.13. That level has already been retested as support on the weekly, so there's a chance this continues up into price discovery. That said, it is still likely worth bidding that area for another retest.
I know nothing about the current fundamentals of Coke, so always take a look before investing in stock.
Rio De Janeiro Buys Crypto
The Brazilian city also plans to give discounts on tax payments made with bitcoin.
Since El Salvador adopted a Bitcoin standard, speculators have taken guesses at who would likely be next. Tonga seems in line for national adoption, while cities around the world are starting to consider the idea. Following in the footsteps of Miami and with the advice of Mayor Suarez, Rio De Janeiro has announced their own plans in the crypto space. Rio will be allocating 1% of their treasury reserves to crypto. Their Mayor also announced “Crypto Rio," a program to further adopt crypto at the city level. Citizens of the city will now be incentivized to pay taxes in Bitcoin for a 10% discount on their fees.
The dominos are starting to fall.
Crypto Is In "Napster Age"
Crypto is still in its Napster days, according to JPMorgan's Umar Farooq
According to Omar Farooq, the head of JPMorgan’s Blockchain unit, cryptocurrency is currently “sitting in the Napster age. We just don't know what Spotify looks like. So, I think [crypto] is here to stay. I just don't know in what shape or form.” For context, Napster peaked around the year 2000. Spotify, on the other hand, may not have found its peak yet. Napster had about 60 million users. Spotify has over 380 million. If the comparison runs true, that means this executive is predicting crypto will at least 6x over time. Not a bad time to be investing in crypto.
The Wolf Of All Streets Podcast Ft. Mike McGlone
Mike McGlone, the Senior Commodity Strategist for Bloomberg, made his third appearance on the podcast to share with listeners his current perspective on the state of the market. Mike believes that the data is pointing to an imminent market correction that will surprise most people. His tagline “Don’t Fight The Fed” encapsulates his belief that tightening monetary policy is the largest contributor to this short-term pullback. You’ll have to watch the full episode to find out how Mike is preparing for 2022.
In this episode with Mike McGlone, we discussed:
What Are The Market Gods Telling Us?
Is Bitcoin A Correlated Asset?
Nothing Can Compete With Ethereum
Bitcoin Is Replacing Gold
Is The Market Too Bullish?
The Market’s Endgame
Deflation Is Natural
Corrections Are Normal
How To Succeed In The Market
What Happens To The Dollar?
Do Bears Win Long-Term?
This episode is sponsored by: AMBER GROUP and HORIZEN.
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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.