The Wolf Den #44 - Bitcoin's Big Move, My Bad Trades, Chart Requests
thewolfden.substack.com
A MAJOR THANK YOU AS ALWAYS to my sponsors: VOYAGER and PHEMEX.Please make sure to sign up for an account! I use Voyager for my spot trading and investing (and to compound interest) and I use Phemex for trading with leverage. Sign up to both with the links above and get some free Bitcoin.Stablecoins have been the talk of the crypto world for years, most notably the seemingly endless controversy around Tether (USDT) and its role in driving Bitcoin price. I do not indulge in conspiracy theories and personally never was particularly concerned with the FUD that surrounded Bitfinex and Tether. If Tether was not backed by dollars, it would have likely been exposed by now. I also never used it - I have always preferred to go straight to dollars.The big news regarding stablecoins follows, from Messari:"Driven by a global flight to safety, and demand for USD, stablecoins saw an explosive Q1’20 with total market capitalization ending the quarter at more than $8 billion. In fact, demand for stablecoins was so strong that more value flowed into the sector in Q1’20 than in all of 2019. Most flows were into Tether, the dominant stablecoin, though others like USDC have started to grow significantly."Wow. Stablecoins have reached a market cap of 8 billion dollars. Interestingly, a huge swath of that is reportedly sitting on exchanges (3-4B at least). In my eyes, this is extremely bullish for Bitcoin and the space. Given the option, you would think that billions of dollars would be moved to fiat if the intention was to exit the market entirely. That has not happened. Instead, investors have moved to stablecoins and left them on exchanges - the only rational reason to do this is if you are waiting for the opportunity to buy Bitcoin and other cryptocurrencies. Otherwise, you are taking on exceptional added risk by holding Tether and other stablecoins on an exchange, rather than in your own wallet.This is a massive store of "dry powder" to fuel another bull run.What's more interesting?Ethereum has been the big winner in the stablecoin bonanza. ETH recently reached value transfer parity with Bitcoin. Stablecoins now account for 80% of daily transfer value on Ethereum as it has proven to be the issuance platform of choice for new stablecoins. This growth is likely to continue as Tether moves more of its issuance on to Ethereum and new stablecoin projects are launched throughout the year. This is also clearly bullish for the DeFi (Decentralized Finance) space.If you have been following me for a while, you are aware that I am more bullish on Ethereum than I am on Bitcoin, and that I have switched my dollar cost averaging strategy from Bitcoin to Ethereum over the past few months.I have a number of DCA (Dollar Cost Averaging Strategies). I automatically buy Ethereum (and other assets) at a fixed time on a fixed day, regardless of price. If you want to automate this with small amounts, I highly suggest using RoundlyX and Voyager together. I have been doing this since before I was working directly with either. In fact, I was such a fan of both platforms individually that I introduced them and helped to facilitate this partnership.All you have to do is sign up for RoundlyX (use code WOLF for $4 in free BTC - I don't get anything for it!) and attach an account to "roundup." Every time you use that account (I use a credit card), it rounds up your purchase to the nearest dollar and invests it in the crypto of your choice, from the exchange of your choice. Since Voyager has no fees, it seems like the obvious choice. Once you have both accounts set ups, you can get this up and running. RoundlyX never holds any of your crypto - the transaction is done on exchange so it is super secure.I personally have the 10x feature chosen on RoundlyX, which accelerates my buying. You'll find yourself investing a few dollars at a time and will never even notice that the money is gone. After a few weeks/months/years, you will be shocked at how much you have saved and, hopefully, at how much it has grown.I also use Acorns to passively buy small amounts of stock on a daily basis using roundups - it's the exact same concept.In today's newsletter, I will detail a few BAD trades that I took in the past few weeks. It is always important to review your trades and keep a journal - I am effectively doing that here for all of you to see. Everyone makes mistakes, it's part of the process no matter how long you trade for. I hope that you can learn a bit from my errors.I will not be sharing any alt trades today - I had a few lined up, but do not feel it would be particularly responsible when Bitcoin is making such big moves. I am still in almost all of my alt trades and still really like MATIC here - you can refer to any of the last few issues for that chart. If Bitcoin chills here, altcoins should remain fine. As I am going back over this, they seem to be reacting quite well (a few percent drop). A general note - whenever I draw a line on a chart, it should be viewed as elastic and not static. It is more of a zone. So the areas around those lines are usually more accurate. Further, I try to use multiple techniques and indicators on various charts, so if you are learning TA, you should read through all of these to see how I blindly look at a chart.If you are a new member, please refer to Issue 10 (you can click on it here - https://www.getrevue.co/profile/TheWolfDen/issues/the-wolf-den-crypto-newsletter-issue-10-219754 and have it sent to you) for instructions on how to make my charts your own.IMPORTANT NOTE - I will only accept requests on Wednesdays, between 8 AM and 1 PM EST. That will make sure that they are your most pressing requests. Please mark it in your calendar and email me by responding to this email!What's in this issue?Bitcoin Thoughts And AnalysisThe Wolf Of All Streets Podcast Ft. Charlie ShremAnatomy Of The Worst Break-Even Trade Ever26.4 Million Jobs Lost In The United States... In Weeks"Digital Dollar" Is Back On The DocketInstitutional Money Is HereLetter From A New Jersey DoctorSchwab's Market PerspectiveChart Requests
The Wolf Den #44 - Bitcoin's Big Move, My Bad Trades, Chart Requests
The Wolf Den #44 - Bitcoin's Big Move, My Bad…
The Wolf Den #44 - Bitcoin's Big Move, My Bad Trades, Chart Requests
A MAJOR THANK YOU AS ALWAYS to my sponsors: VOYAGER and PHEMEX.Please make sure to sign up for an account! I use Voyager for my spot trading and investing (and to compound interest) and I use Phemex for trading with leverage. Sign up to both with the links above and get some free Bitcoin.Stablecoins have been the talk of the crypto world for years, most notably the seemingly endless controversy around Tether (USDT) and its role in driving Bitcoin price. I do not indulge in conspiracy theories and personally never was particularly concerned with the FUD that surrounded Bitfinex and Tether. If Tether was not backed by dollars, it would have likely been exposed by now. I also never used it - I have always preferred to go straight to dollars.The big news regarding stablecoins follows, from Messari:"Driven by a global flight to safety, and demand for USD, stablecoins saw an explosive Q1’20 with total market capitalization ending the quarter at more than $8 billion. In fact, demand for stablecoins was so strong that more value flowed into the sector in Q1’20 than in all of 2019. Most flows were into Tether, the dominant stablecoin, though others like USDC have started to grow significantly."Wow. Stablecoins have reached a market cap of 8 billion dollars. Interestingly, a huge swath of that is reportedly sitting on exchanges (3-4B at least). In my eyes, this is extremely bullish for Bitcoin and the space. Given the option, you would think that billions of dollars would be moved to fiat if the intention was to exit the market entirely. That has not happened. Instead, investors have moved to stablecoins and left them on exchanges - the only rational reason to do this is if you are waiting for the opportunity to buy Bitcoin and other cryptocurrencies. Otherwise, you are taking on exceptional added risk by holding Tether and other stablecoins on an exchange, rather than in your own wallet.This is a massive store of "dry powder" to fuel another bull run.What's more interesting?Ethereum has been the big winner in the stablecoin bonanza. ETH recently reached value transfer parity with Bitcoin. Stablecoins now account for 80% of daily transfer value on Ethereum as it has proven to be the issuance platform of choice for new stablecoins. This growth is likely to continue as Tether moves more of its issuance on to Ethereum and new stablecoin projects are launched throughout the year. This is also clearly bullish for the DeFi (Decentralized Finance) space.If you have been following me for a while, you are aware that I am more bullish on Ethereum than I am on Bitcoin, and that I have switched my dollar cost averaging strategy from Bitcoin to Ethereum over the past few months.I have a number of DCA (Dollar Cost Averaging Strategies). I automatically buy Ethereum (and other assets) at a fixed time on a fixed day, regardless of price. If you want to automate this with small amounts, I highly suggest using RoundlyX and Voyager together. I have been doing this since before I was working directly with either. In fact, I was such a fan of both platforms individually that I introduced them and helped to facilitate this partnership.All you have to do is sign up for RoundlyX (use code WOLF for $4 in free BTC - I don't get anything for it!) and attach an account to "roundup." Every time you use that account (I use a credit card), it rounds up your purchase to the nearest dollar and invests it in the crypto of your choice, from the exchange of your choice. Since Voyager has no fees, it seems like the obvious choice. Once you have both accounts set ups, you can get this up and running. RoundlyX never holds any of your crypto - the transaction is done on exchange so it is super secure.I personally have the 10x feature chosen on RoundlyX, which accelerates my buying. You'll find yourself investing a few dollars at a time and will never even notice that the money is gone. After a few weeks/months/years, you will be shocked at how much you have saved and, hopefully, at how much it has grown.I also use Acorns to passively buy small amounts of stock on a daily basis using roundups - it's the exact same concept.In today's newsletter, I will detail a few BAD trades that I took in the past few weeks. It is always important to review your trades and keep a journal - I am effectively doing that here for all of you to see. Everyone makes mistakes, it's part of the process no matter how long you trade for. I hope that you can learn a bit from my errors.I will not be sharing any alt trades today - I had a few lined up, but do not feel it would be particularly responsible when Bitcoin is making such big moves. I am still in almost all of my alt trades and still really like MATIC here - you can refer to any of the last few issues for that chart. If Bitcoin chills here, altcoins should remain fine. As I am going back over this, they seem to be reacting quite well (a few percent drop). A general note - whenever I draw a line on a chart, it should be viewed as elastic and not static. It is more of a zone. So the areas around those lines are usually more accurate. Further, I try to use multiple techniques and indicators on various charts, so if you are learning TA, you should read through all of these to see how I blindly look at a chart.If you are a new member, please refer to Issue 10 (you can click on it here - https://www.getrevue.co/profile/TheWolfDen/issues/the-wolf-den-crypto-newsletter-issue-10-219754 and have it sent to you) for instructions on how to make my charts your own.IMPORTANT NOTE - I will only accept requests on Wednesdays, between 8 AM and 1 PM EST. That will make sure that they are your most pressing requests. Please mark it in your calendar and email me by responding to this email!What's in this issue?Bitcoin Thoughts And AnalysisThe Wolf Of All Streets Podcast Ft. Charlie ShremAnatomy Of The Worst Break-Even Trade Ever26.4 Million Jobs Lost In The United States... In Weeks"Digital Dollar" Is Back On The DocketInstitutional Money Is HereLetter From A New Jersey DoctorSchwab's Market PerspectiveChart Requests