The Wolf Den #76 - Trade Ideas
Bitcoin Dominance And Altcoin Marketcap
Bitcoin Dominance has actually been following technical analysis beautifully, breaking support and then retesting as resistance before dropping. This happened once again yesterday, with it being rejected at 64.17 before dropping again. There's no reason to believe that alt season is coming to an end based on this chart. Dominance continues to fall off of a cliff with few signs of an incoming bounce. I have said over and over that there will be some times still when alts look bad, but on a larger scale this is all very encouraging.
Once again, the TOTAL2 chart represents the crypto market cap without bitcoin - so it's the marketcap of alts. Beautiful chart, macro breakout from the descending black line, which we discussed before. Also a breakout from the red bull flag, which was the consolidation below that black resistance. This is currently retesting both as support, so even if alts drop a bit for that to happen, the overall trend is very bullish for alts.
Altcoin Trades
Many of these are updates and reminders, some of them are new trades. I have not looked at everything that is out there and a lot of coins I would have posted have already taken off.
COMP/BTC
This went on an epic run at the beginning of the "yield farming" craze, but has dropped since being added to Binance. It looks like it is potentially ready to reverse and head back up. Anything above 18005 is good (my entry), that's a key local level to flip back to support. The real party should theoretically start if this breaks the descending blue line. Stops are below the lowest lows. I want nothing to do with downward price discovery here.
ENG/BTC
This is an update and still looks great to me. Much like some of the other setups I have shared, this is a macro breakout and will likely take time to really play out. I have been in this for weeks and this is a weekly chart. That said, 2901 is a key level which is currently being broken once again. I am using blue resistance lines and Fibonacci levels as targets here. Stops at this point can be placed safely below the red line, depending on position size. There are a lot of ways to approach this, but I usually size my positions smaller on larger time frame charts, because the moves and time they take are much larger.
ERD/BTC
I have taken some profit on this pair after doing an 8X in only a few weeks on the setups that I have posted. Nothing looks "bad" here at all - it continues to rise and flip resistance to support. That said there has been a clear and major decrease in volume as price has risen the past week, so I am proceeding with caution. This is more of an update than a setup. For now, you want to see 172 hold or the red line broken to signal more movement up. Just don't give away all the gains we have made!
PNT/BTC
This was another great trade from Tuesday, which follows other great opportunities on this pair. Price once again broke resistance and came back to test descending black resistance as support. This was successful and price has risen since. The blue line at 7871 is a key local support that we want to see tested successfully. That is happening now. Stops can be placed safely below the red ascending support line and can be raised accordingly as price continue. I love having an ascending support to use as an invalidation, because it gives a good reason to lock in profits and move up stops. Targeting the highs at the top black line, but have higher expectations for this going into price discovery if alt season continues.
POWR/BTC
Just a quick update, because nothing has changed on this trade for me. The macro breakout is still intact, and price is currently retesting local support at 983. I am still fully in this, so I just wanted to let you all know that I have not altered my plan.
SXP/BTC
Update - this is up 25% since Tuesday, when I shared the entry at the lowest blue line. It has since consolidating and broken out again and is once again consolidating below the highs and another descending blue line. Targets are impossible to discern here, because there's not price history and we are practically in price discovery once again. I would just say that this is a Binance project and is likely to continue up. I am still in from the original entry, moving stops up as it goes.
THIS IS ALREADY BREAKING OUT AGAIN, SINCE I WROTE UP THE SETUP
TROY/BTC
I posted this setup yesterday. It failed to break resistance, as discussed and went back to test the descending black line as support. I have entered this from 47 sats. My targets are 54 (again) and 75, for the moment. If it reaches that high, I will update and consider what to do with the rest of the position. With a smaller position size, you can put stops at various spots - below the ascending black line is the safest, and you can raise the stop as price continues on and the line rises. Otherwise, below the recent lows on this quick move down will work, but be wary of a quick wick.
Legacy Markets
A few updates. Keep an eye on the DYNT setup. NBY and CRON have also offered massive gains. What a few weeks!
I am still short TESLA and BYND.
APT (ALPHA PRO TECH)
Up more than 50% since our entry a few short weeks ago and currently testing a key resistance. If it can close today above 20.6, sky is the limit.
CODX (CO DIAGNOSTICS)
Another update on this, just so you can see that it broke out and has retested the blue descending resistance as support!
My Recommended Platforms And Tools
Voyager
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: Scott25
Phemex
This is where I trade with leverage and can also trade spot with no fees.
RoundlyX
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
TexasWest Capital
This is where I spend my days teaching and learning! Our Discord group is a one stop shop for everything you need to learn to trade and control your emotions. Feel free to DM me on Twitter or respond to this email for questions.
Choice IRA by Kingdom Trust
Self-Directed IRA for Americans - allows you to invest in Bitcoin and any other asset for your retirement, with all of the tax benefits of a normal IRA.
Efani
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.
A new crypto rewards debit card that I have been testing and loving. I use both the virtual card online and the physical black card at actual retail (I will do this more after COVID!). They offer 6.38% cash back in crypto, which is really astounding.
BlockFi
BlockFI is where I personally store part of my long holdings. They offer up to 8.6% annually, compounding, depending on the asset (BTC, ETH or GUSD), which is much better than any legacy savings account or investment.
Follow me on Twitter at @scottmelker. This is where I am constantly updating my trades and sharing ideas.
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.