The Wolf Den #436 - Learn To Love Volatility
Bitcoin Thoughts And Analysis
DAILY CHART
Beautiful price action. What a difference a day makes. The 50 MA remains the key line and held beautifully as support. $45,478 is clearly the key resistance that needs to be attacked and broken.
If you did not buy support on the 50 MA, then there is really nothing to do here. Still floating between levels.
4-HOUR CHART
That bull div played out beautifully.
BOTTOM LINE: Key levels remain the same on almost every time frame, and price is between levels now. We want to see 42K hold, with 39.6K below as the next support. More accurately, we want to see price above 45.5K and heading to 52-53K.
Altcoin Charts
ATOM/USDT
Nothing to do here yet. I am watching the descending blue line as a signal that ATOM is truly reversing. That said, there's bullish divergence (not shown) confirmed with RSI, a potential double bottom (would need to break the red line above to be valid) and a really nice bounce above strong support. If alts are reversing here, this should do well.
I have an alarm set on the descending blue line, which would be my trigger to pay attention.
EGLD/USDT
This is a setup that I shared last week. As you can see, it is currently following the idea, bouncing beautifully off of support. Any price action above $185 remains bullish.
Canada Is Targeting Cryptocurrencies
A complicated political conflict has emerged in Canada and cryptocurrencies are caught in the crossfire. You may have heard about the "The Freedom Convoy" happening in Canada, a blockade designed to put pressure on the government to lift Covid restrictions. Truckers have rallied together and blocked important chokepoints, preventing the free flow of goods. As a result, major companies and manufacturers are shutting down.
Sites like GoFundMe and GiveSendGo saw millions of dollars in donations. The Canadian government resorted to invoking the Emergencies Act, which ordered the freezing of all donations. They are also moving to freeze the accounts of the individual truckers.
Bitcoiners around the world, upset by the decision, donated over 20 Bitcoin to the movement outside of these legacy systems, which inevitably pissed off the government. These funds presumably will still make it to the truckers.
Crowdfunding was shut down, access to banking denied, and intermediary services were ordered to cease interaction with protestors. The government rug pulled its citizens without any democratic processes in place, in what some say is one of the most progressive countries in the world. Any form of fundraising was deemed illegal, including digital assets raised through popular sites. Donations were sent back to the original donators through the financial services they were raised in. It is a complete shit show in Canada.
The story serves as an advertisement for Bitcoin, a financial system that can’t be shut down directly. People assumed that Bitcoin only made sense in countries with oppressive regimes, but here it is posing a solution to a real-world problem in a 1st world country. Bitcoin can and will save us.
Coinbase Becomes A Meme Again
For most of the major crypto companies, their marketing “Super Bowl” came in the form of cleverly crafted commercials making the case for using crypto on their platform. Coinbase went a different direction. They didn't hire actors, allude to the metaverse, or even use dialogue. Instead, they spent $14M to have a colorful QR code bounce around the screen for 60 seconds, like an old DVD player or computer icon. Nobody even knew it was a Coinbase commercial unless they pointed their camera at the screen, which then linked viewers to the site.
As expected, reviews were mixed. Some people called it the most brilliant Super Bowl ad ever, while others called it hot garbage.
That means that the idea actually worked. Seemingly everyone was talking about Coinbase after the commercial ran.
The problem?
The commercial resulted in 20M hits within a minute of airing, immediately crashing the site in what might be the most unironic Coinbase crash yet. No surprises here, right? Almost 10 years in business, and Coinbase freezes on days with moderate volatility.
The fact that they were still somehow unprepared for the traffic is poetic.
Coinbase has found a way to outdo itself once again and they are still trending from the nonsense. Go figure.
Stablecoin Bill Proposed
This will inevitably be the first of many proposed pieces of legislation on stablecoins. From the article:
New Jersey Rep. Josh Gottheimer unveiled an early draft of legislation aimed at placing definitions around stablecoins.
Critics consider stablecoins susceptible to manipulation, bad actors and collapse the result of insufficient reserve capital.
A draft released by Gottheimer’s office proposes to designate certain digital currencies as “qualified” stablecoins if they can be redeemed on a one-for-one basis for U.S. dollars.
Gottheimer has apparently been consulting heavy hitters in the crypto space, as well as the Treasury Department, so this bill may have legs. We know that regulation of stablecoins is coming, and this seems like a reasonable first proposal.
The Wolf Of All Streets Podcast Ft. Sven Henrich
The Fed is out of control and so is the monetary policy of central banks around the globe. Sven Henrich from NorthmanTrader, once a vocal skeptic of Bitcoin, now considers it to be a potential solution to the madness. He recently authored a viral manifesto called (R)evolution, articulating why he thinks Bitcoin is both an evolution and revolution of money. This exciting episode breaks down the Fed’s circus, market cycles, and Bitcoin as our inflation hedge - you can’t miss it.
In this episode with Sven Henrich, we discussed:
How Screwed Are We?
Stock Prices Aren’t Natural
Goldman Prices In Interest Hikes
Let The Market Sort Itself Out
The Market Is A Circus, Bitcoin Will Save Us
Is Bitcoin An Inflation Hedge?
The System Can’t Handle Higher Rates
What Do You Do With $5M Right Now?
Surviving Drawdowns
More Printing, More Money
This episode is sponsored by: HORIZEN
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