The Wolf Den #476 - Financial Advisors Are Bullish On Crypto
Bitcoin Thoughts And Analysis
Yesterday was a rough day in markets, and Bitcoin was no exception. Price broke below 40K and invalidated certain bullish narrative for the moment. That said, we know the key levels - 45.5, 42, 39.6. Price held the 39.6 area for now.
WEEKLY CHART
You can see the key levels here. The red line at $39,600 is very important and is a major support. Below that, we have a clear area between $38,400 and $37,700 that would likely be strong support.
DAILY CHART
Bitcoin could be putting in another higher low. Could. We want to see that trend continuing, which we have for now.
4-HOUR CHART
The beautiful potential bullish divergence was not to be. RSI put in a slightly lower low on the drop. That said, any move below the $39,500 area on the 4-hour chart and close there would likely give us an even better one. Patience.
Legacy Markets
DXY (DOLLAR INDEX)
As you know by now, most assets traded inversely to the dollar. When the dollar is strong, hard assets suffer. The opposite is also true. Also, the DXY is merely a comparison of dollar strength versus a basket of other currencies. It can still go up even with inflation and money printing, because it is stronger than the other currencies.
The dollar has been showing strength now since bottoming in 2021. I have shared the blue channel and double bottom many times. Now the dollar is flipping even more key levels to support.
Here is the zoomed in version. The dollar is back above 100 for the moment, putting pressure on almost everything else.
Misinformation Around The Merge
Ethereum critics have posited that the Merge will be a “sell the news” event. This idea comes from the belief that when the Merge happens, all staked Ethereum will be unlocked, creating massive selling pressure.
This is incorrect.
Ethereum will not be unlocked the day the merge happens and also won't be unlocked all at once. It will happen after a few months in increments of 30k ETH per day. This may seem like a lot, but there is currently 11M Ethereum staked and the demand should grow significantly post-merge.
The market is always unpredictable, and this may be a "sell the news" event, but it won't be for the reason being proposed.
Altcoins And Airlines
Jimmy Song, a long-time Bitcoin advocate wrote a fascinating article in Bitcoin Magazine likening “airline mile chasers” to “altcoin chasers.” Essentially the argument goes something like this - chasing free or cheap airline miles is a worthless pursuit like altcoiners spending countless hours looking for bargains without utility.
Before you grab your pitchforks, I want to say that I do and do not agree with the claims of the article. Many of you already know that I invest in numerous altcoins that I believe are working on solving real-world problems ie. Ethereum, Polygon, Avalanche, Elrond, etc. I own these because I truly believe that, like Bitcoin, they are revolutionizing our financial system in their own unique way.
Many of the 20,000 altcoins are as thin as air and chasing them really is like chasing airline miles. I highly suggest you read this article. I’m even considering revisiting the idea with more extended thoughts at some point.
I also interviewed Jimmy in Miami, and he held nothing back about his disdain for altcoins.
Inflation Continues To Run Hot
I expect a gold medal performance of mental gymnastics in the inflation number reporting today. Not only do we know that the government recently conveniently changed how they calculate CPI, but we also have them now blaming Russia for historic rises in inflation, as if printing 40% of the money in the history of the country in 18 months had nothing to do with it.
Bottom line? Inflation is out of control and things are about to get ugly.
Watch This Right Now
I was busy hosting interviews and missed most of the panels during Bitcoin 2022. That said, almost every guest independently told me that I "had to watch" the video from the "Bitcoin is Freedom" panel.
It is easy to get caught up in trading, speculating, and the "number go up" mentality. But it is more important to understand what we are a part of and why it matters.
Bitcoin is freedom and is saving lives all over the world. Watch the video, and then watch the entire panel.
The Wolf Of All Streets Podcast Ft. Joshua Frank
How can you make more money in the world of crypto? By knowing the market. And that starts with data. Our guest today is Joshua Frank, Co-Founder and CEO of The TIE. The TIE is a leading information services provider for digital assets. Joshua and his team are on a mission to help crypto-driven businesses make informed, data-driven decisions by monitoring everything from the news to investor relations. In this episode we discuss whether or not crypto is really the Wild Wild West, the massive shift we’re seeing from traditional assets to cryptocurrencies, the importance of being first in on the newest trends, and the increasing need for information analytics.
In this episode with Joshua, we discussed:
Is Crypto really the Wild Wild West?
What’s triggering the crypto “gold rush”?
Tokenize everything
Bloomberg & the network effect
The shift from traditional assets to crypto
Our sponsors: Vauld & Vuori
How The TIE helps their clients make smart decisions
Cross-chain wallet data
Be the first in
The need for information analytics
Institutional Money Making the Switch
What to look forward to in the next year
This episode is sponsored by: VUORI and VAULD.
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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.