The Wolf Den #455 - Value Investing
Bitcoin Thoughts And Analysis
Charts are effectively useless at the moment. Here are a few images that better describe Bitcoin price action than any chart that I can post.
Trading and analyzing Bitcoin right now is effectively impossible. NOTHING is happening. Bitcoin has traded at 39K every single weekend for the past 3 weeks, and almost every day.
WEEKLY CHART
Gross. Monster wicks all over the chart, and 2 weeks with huge wicks up and rejection by bears. Clearly sellers are still in control, blocking any attempt to push up. They key levels remain the same. There is nothing to do here for now.
Altcoin Charts
Altcoins continue to bleed as Bitcoin searches for direction. As I always say, having no position is a position. Choosing not to be in a trade and to sit on the sidelines is as important a decision as which coin to buy, when to buy and when to sell. Hopefully you realize that I have not shared many charts because the market looks weak and I do not trade in suboptimal conditions.
Addressing The Fake Russian News
Uncertain markets are a breeding ground for fake news. Over the weekend, a rumor began to circulate that wealthy Russians were trying to liquidate the crypto they own in the UAE in fear of government freezes and sanctions. Supposedly, phone calls were flooding into different investment funds from Russians demanding “to liquidate billions of dollars.” According to one firm, the lowest liquidation request was for over $2B. All of this set in motion the idea that many billions of dollars were about to be dumped on the open market.
To make the story even more ridiculous, the reporters covering the story said that the investors wanted the cash to either stash away in new hiding places or to buy real estate, as if that would somehow be safer. There were even fears that the Swiss government was going to start freezing accounts and seizing money. Luckily, critics were quick to point out that the story was almost entirely false before it took off and caused even greater fear. It’s a full-time job at this point to keep up with all the FUD.
Will Mexico Adopt Bitcoin?
Ever since El Salvador’s move to adopt Bitcoin as legal tender, rumors have run rampant as to what country would be next. Over the weekend, tweets went viral announcing that Mexico had decided to make Bitcoin legal tender. Of course, no evidence followed. The rumor isn’t entirely based on speculation. Three weeks ago, Mexican Senator Indira Kempis, announced that she would present a Bitcoin bill to the government. Kempis even visited El Salvador for inspiration. Mexico, we are rooting for you!
MICA Bill Heads To Vote
The crypto community was in a panic this weekend on rumor that the EU's major crypto bill would include an effective ban on Proof Of Work mining, making Bitcoin effectively illegal in Europe. As is often the case, the panic was overblown, and a watered down version of the bill without the POW ban has been submitted.
The public meeting beings at 7:45 a.m. ET and can be watched live.
We are safe - for now.
Stripe Returns To Crypto
Stripe has had a complicated relationship with crypto, enabling and disabling features over the years. They are back on the right side of history again, launching crypto payments support and allowing customers and merchants to interact with cryptocurrencies.
Alongside the news, crypto exchange FTX announced that it is partnering with Stripe to improve its identity compliance features and fiat onboarding workflows for users.
My Recommended Platforms And Tools
This is where I trade with leverage and can also trade spot with no fees.
This is where I invest, commission-free. They now let you earn interest on your Bitcoin held in Voyager, so you can compound while trading. Not only that, you’ll get $25 in free BTC when you download & fund.
Rewards Code: WOLF25
Mining for everyone! You can buy an ASIC and have it set up at a destination of your choice by them, and you only pay the electricity cost. Absolutely awesome.
I use RoundlyX to buy small amounts of Bitcoin every single day. They automatically round up my credit card purchases (with 10x multiplier) and invest them in crypto. Absolutely brilliant. Passively invest money you don’t need without a thought. Further, they have integrated with Voyager (see above) to offer commission-free purchases.
Rewards Code: WOLF
Concierge Phone Service for Americans that protects your from SIM Swaps and other phone related hacks. I cannot stress enough how amazing this service is.
Subscribe to my YouTube channel for free daily content.
Follow me on Twitter at @scottmelker. This is where I am constantly updating my trades and sharing ideas.
On-chain and fundamental analysis, research, predictions and indicators, all in one place. Highly recommend.
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.