The Wolf Den #49 - Altcoin Wreckage, Berkshire Hathaway, Bitcoin
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This newsletter is sponsored by 2 amazing companies: VOYAGER and PHEMEX.I use Voyager for my spot trading and investing (and to compound interest) and I use Phemex for trading with leverage - this is where I have been able to short LINK. Sign up to both with the links above and get some free Bitcoin. I really encourage you to check them both out - you know that I never endorse a product that I do not use!Rule number 1 of risk management: protect your capital.Rule number 2 of risk management: grow your capital.Rule number 3 of risk management: see rule number 1.My number 1 goal with this newsletter is to help you avoid losing money. My secondary concern is to help you grow it, and it's secondary by a wide margin.A few members understandably expressed disappointment when I decided to exclude the altcoin section from the Tuesday newsletter. As I explained then, I DO NOT TRADE when the market conditions are suboptimal. If I would not consider a trade, I would NEVER share it with someone who may. I did not like what I was seeing with alts at the time. Bitcoin going up clearly hurt altcoins. Bitcoin going down would likely hurt altcoins. And in this case, Bitcoin going sideways has also hurt altcoins. Trying to find a profitable trade in these conditions is like looking for a needle in a haystack. If you were here for some of Bitcoin's biggest runs in the past, you know that when all eyes are on Bitcoin, you do not want to be trading anything else. With the "biggest" fundamental event in years coming in less than a week, the halvening, the honey badger is the only game in town.Since Tuesday, most alts have dropped a few more percent. The charts look terrible. They will likely get some relief due to being oversold on RSI, but none seem to even be forming bullish divergences. Every setup is blown and they all look like potential falling knives at best. Some coins are breaking key support levels without even the hint of a bounce. There's nothing about the market that looks great, unless you are trying to buy bottoms and are willing to hold if they continue down. If you are an alt coin investor (I am NOT), then I could see making some purchases and then checking the balance in a few months. But if you are trading, I can't see a compelling reason to try here. You do NOT NEED TO CATCH THE BOTTOM to be profitable. When they reverse, there will be plenty of time to make money within the movement.Never force trades in bad market conditions. This market is open 24/7/365 - there will be plenty of opportunities to make money. I know the feeling that you have to be in the market all the time, but that's a losing mentality. Sometimes the best trade is no trade at all. Sitting on the sidelines is a position.And now for something completely different.I truly believe that interest in Bitcoin is skyrocketing. As I will discuss later in the newsletter, open interest on the CME has hit an all time high. The Cash App recorded record levels of Bitcoin volume this quarter - in fact, it is the bulk of their revenue. I am increasingly hearing chatter from my "normie" friends about crypto again.More importantly, I think that people are finally opening their eyes to what has been happening around the world. Infinite money printing and stimulus, bailouts, helicopter money and the threat of inflation are all topics that are at the forefront of mainstream media now. All of these are cases for Bitcoin. People have had their eyes closed in the past, shrugging and assuming that whatever was happening was the norm and wasn't hurting them. I see that paradigm shifting. People are scared, they don't trust the government and other centralized entities. This should be Bitcoin's moment. From the amount of people talking about it and buying it, our dreams may be starting to come to fruition.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 AnalysisTrading Quotes That I LoveThe Wolf Of All Streets Podcast Ft. Dan Gunsberg"Woodstock For Capitalists"US National Debt Hits 25 TrillionOpen Interest On Bitcoin Is At An All Time HighInterest In Bitcoin From Retail Is SkyrocketingChart Requests
The Wolf Den #49 - Altcoin Wreckage, Berkshire Hathaway, Bitcoin
The Wolf Den #49 - Altcoin Wreckage…
The Wolf Den #49 - Altcoin Wreckage, Berkshire Hathaway, Bitcoin
This newsletter is sponsored by 2 amazing companies: VOYAGER and PHEMEX.I use Voyager for my spot trading and investing (and to compound interest) and I use Phemex for trading with leverage - this is where I have been able to short LINK. Sign up to both with the links above and get some free Bitcoin. I really encourage you to check them both out - you know that I never endorse a product that I do not use!Rule number 1 of risk management: protect your capital.Rule number 2 of risk management: grow your capital.Rule number 3 of risk management: see rule number 1.My number 1 goal with this newsletter is to help you avoid losing money. My secondary concern is to help you grow it, and it's secondary by a wide margin.A few members understandably expressed disappointment when I decided to exclude the altcoin section from the Tuesday newsletter. As I explained then, I DO NOT TRADE when the market conditions are suboptimal. If I would not consider a trade, I would NEVER share it with someone who may. I did not like what I was seeing with alts at the time. Bitcoin going up clearly hurt altcoins. Bitcoin going down would likely hurt altcoins. And in this case, Bitcoin going sideways has also hurt altcoins. Trying to find a profitable trade in these conditions is like looking for a needle in a haystack. If you were here for some of Bitcoin's biggest runs in the past, you know that when all eyes are on Bitcoin, you do not want to be trading anything else. With the "biggest" fundamental event in years coming in less than a week, the halvening, the honey badger is the only game in town.Since Tuesday, most alts have dropped a few more percent. The charts look terrible. They will likely get some relief due to being oversold on RSI, but none seem to even be forming bullish divergences. Every setup is blown and they all look like potential falling knives at best. Some coins are breaking key support levels without even the hint of a bounce. There's nothing about the market that looks great, unless you are trying to buy bottoms and are willing to hold if they continue down. If you are an alt coin investor (I am NOT), then I could see making some purchases and then checking the balance in a few months. But if you are trading, I can't see a compelling reason to try here. You do NOT NEED TO CATCH THE BOTTOM to be profitable. When they reverse, there will be plenty of time to make money within the movement.Never force trades in bad market conditions. This market is open 24/7/365 - there will be plenty of opportunities to make money. I know the feeling that you have to be in the market all the time, but that's a losing mentality. Sometimes the best trade is no trade at all. Sitting on the sidelines is a position.And now for something completely different.I truly believe that interest in Bitcoin is skyrocketing. As I will discuss later in the newsletter, open interest on the CME has hit an all time high. The Cash App recorded record levels of Bitcoin volume this quarter - in fact, it is the bulk of their revenue. I am increasingly hearing chatter from my "normie" friends about crypto again.More importantly, I think that people are finally opening their eyes to what has been happening around the world. Infinite money printing and stimulus, bailouts, helicopter money and the threat of inflation are all topics that are at the forefront of mainstream media now. All of these are cases for Bitcoin. People have had their eyes closed in the past, shrugging and assuming that whatever was happening was the norm and wasn't hurting them. I see that paradigm shifting. People are scared, they don't trust the government and other centralized entities. This should be Bitcoin's moment. From the amount of people talking about it and buying it, our dreams may be starting to come to fruition.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 AnalysisTrading Quotes That I LoveThe Wolf Of All Streets Podcast Ft. Dan Gunsberg"Woodstock For Capitalists"US National Debt Hits 25 TrillionOpen Interest On Bitcoin Is At An All Time HighInterest In Bitcoin From Retail Is SkyrocketingChart Requests