The Wolf Den #474 - Trade Less To Make More
Bitcoin Thoughts And Analysis
Bitcoin continues to trade sideways after dropping a few days ago - right at the beginning of the Bitcoin Conference. It has currently failed to recapture the key $45,500 level, which obviously puts the $42,000 area in view as the next support. Floating between the two levels with little clarity is suboptimal for traders.
You have seen my charts enough - you know the key levels by now.
4-HOUR CHART
This is the only thing that I am currently watching for, as you likely know. When RSI goes oversold, especially on the 4-hour chart (for me), I look for bullish divergence. That would require a candle close below th eblack line at $43,191, and then a definitive move up on both RSI and price - and RSI has to make a higher low in the process. Just an idea, no guarantees. But this is the signal that I trade and look for over and over and over and over again on these moves. Price can go down much further without a div, but we will eventually make the trip back to overbought.
Lightning Strikes Mainstream Adoption
Well, we didn't get Apple, but Lightning did strike. Earlier yesterday, Robinhood got the ball rolling, by announcing their plans to adopt the Lightning Network on their app. Later in the day, Jack Mallers went for the slam dunk, announcing Strike x Shopify - a huge partnership for mainstream adoption and Bitcoin functionality. Let’s talk about Robinhood first.
Ever since Robinhood jumped into the crypto world, users made it painfully clear they wanted full control over their crypto. Robinhood delivered. On top of the added functionality, the advantages of Lighting are pretty amazing, ie. faster transactions, fees as low as a few pennies, and a lower carbon footprint. During the presentation, Robinhood also let us in on a key stat - "Bitcoin is their #1 most recurring buy asset on the platform.”
Now let’s talk about Shopify. Shopify currently has the largest e-commerce market share in the U.S. It is approaching 3M daily users and serves 175 countries. They are HUGE. Through Strike, Jack Mallers is merging Bitcoin, Lightning, and Shopify for a better financial landscape. It's a meaningful step forward.
My one gripe is that in the U.S. and most parts of the world, paying in crypto incurs capital gains tax. Until this is resolved, I imagine most hodlers will have no desire to spend their sats on coffee or pants. The math simply does not add up.
Senator Lummis is working hard on fixing this with a bill, but until we have signed legislation, this is the way things are. Regardless, we are well on our way to an improved financial future, these things take time.
That said, this move will allow consumers to make dollar payments over the lightening network and to reduce fees and friction for merchants.
“Any online merchant that uses Shopify can accept payments without the 1949 boomer [credit card] network, receive it instantly, cash final, no intermediary, no 3% fee."
I'll leave you with a quote from Jack Mallers.
"In reality, payment networks have not innovated in over 50 years. That’s insane. There’s not been, since 1949, a superior payments network that allows us to innovate, build on financial inclusion, offer cheaper services, [and] move the world forward. You're going to be able to walk into a grocery store, to a Whole Foods, to Chipotle, you want to use a Lightning node over Tor, you do that. You want to use the Cash App? You do that."
Bitcoin Friendly Regulation In The Works In Three More Countries
*My newsletter program is failing to allow me to embed more links at the moment. HERE IS THE STORY.
In the battle of daily announcements at the Bitcoin Conference, Samson Mow brought 3 politicians on stage to describe their plans for Bitcoin in their countries.
Joel Bomgar, the president of Próspera, an “economic development hub” located in Honduras, described favorable tax regulations being established there; Miguel Filipe Machado de Albuquerque, the president of Portugal’s Madeira region announced that bitcoin investors will pay no personal income taxes there; and Indira Kempis, a senator in Mexico, announced that she plans to propose regulation there to recognize bitcoin as legal tender.
"I think now is the pivotal time in human history and we need to move things forward fast. What we need is more nation state bitcoin adoption,” Mow said. “Every country, every jurisdiction, will have a unique path to bitcoin adoption. Legal tender is one way, another way is de facto legal tender."
UFC Will Offer Bitcoin To Fighters
Did you know you can now win Bitcoin for beating the crap out of someone? thanks to crypto.com, UFC fans will be able to vote on their favorite fights of the night, which pays out Bitcoin to the fighters. Five figures of Bitcoin will be awarded for the most brutal fights. It's Bitcoin for blood.
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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.