4 Coins We Are Trading and Why #76
Market Meditations | January 15, 2021
You told us what coins you are trading and why. Now, it’s our turn.
Dear Meditators
Thank you to everyone who participated in our thread earlier today.
You told us what coins you are trading and why. Now, it’s our turn.
If you like what you see, remember to share it with your network. Let’s all grow richer together ?
Miami Mayor Wants to Put City’s Treasury Reserves Into Bitcoin ?
Francis Suarez, the major of Miami, is considering putting some of the city’s treasury reserves into bitcoin. In an interview with Fox Business, said that “if I would have done it last year, I would have made 200 plus percent. So I would have looked like a genius.” The mayor is also looking into allowing citizens to pay taxes and fees to the city with bitcoin, in an effort to make Miami “one of the most crypto forward and technological cities” in the country. Read more.Jerome Powell on CBDCs: ‘We Don’t Feel a Need to Be First’ ?
The U.S. is not in a rush to launch a central bank digital currency (CBDC) considering the risks they may pose to the dollar’s dominance. During a webinar, Federal Reserve chairman Jerome Powell said that “clearly there’s a need for, and we’ve been very focused as you know, on better regulatory answers for potential global stablecoins”. He estimates a U.S. CBDC will take years rather than months, but said that the central bank is investing heavily in understanding the technology and potential policy questions. Read more.Capital Manager: ETH Price Will Double Once Bulls Takes Out $1,400 ✨
According to Moonrock Capital Managing Partner Simon Dedic, ETH isn’t far from roaring past its former peak at $1,400. In a recent tweet, the capital manager argued that as soon as bulls breach the former peak, Ether will double in a flash, similar to what BTC did. “You remember how $BTC pumped from 20k to 40k in just 3 weeks once it broke its ATH? $ETH will pump from 1.4k to 3k in less than 2 weeks once its ATH is broken imo,” Dedic predicted. Read more.Billionaire Marks’ Son Owns ‘a Meaningful Amount‘ of Bitcoin for Family ?
In his latest client memo, asset manager and billionaire investor Howard Marks has said that his son Andrew owns a meaningful amount of bitcoin for the family. Regarding his own opinion, he wrote that ‘I probably allowed my pattern recognition around financial innovation and speculative market behavior to produce my skeptical position’, but was also willing to learn ‘in the spirit of open-mindedness’. Marks was not always open to the idea of bitcoin and has called it a pyramid scheme before, calling cryptocurrencies ‘nothing but an unfounded fad’ at the time. Read more.
4 Coins We Are Trading and Why
1) Bitcoin / Dollar
4 Hour
$39,715 – Key Resistance
$34,491 – Key Structural Level
$32,217 – Bias Invalidation
$30,756 – Danger Zone
Confluent with psychological $40,000 level, $39,715 is our key resistance before continuation of the strong uptrend. Before this breaks expect choppiness in price action. Above $34,491 bulls are in control.
Our medium-term bullish bias is invalidated should we lose $32,217. Positioning for a short here presents a good risk to reward ratio as a loss of $30,756 should result in heavy downside price action.
2) Ethereum / Dollar
4 Hour
$1250 – Key Resistance
$1155 – Key Structural Level
$1045 – Key Support
Simpler than bitcoin’s price action and arguably the preferable play here.
Bias flips dependant on our key level $1155, bullish above and bearish below.
3) Chainlink / Dollar
One Day
Two key levels to watch here.
To sustain short term momentum $18 needs to hold, without it I doubt we have enough demand to sustain this move.
Bullish bias stays valid however as long as $16 holds.
Longs are risky right now given the uncertainty around Bitcoin so any Chainlink plays need to take into account this risk.
4) Cardano / Dollar
One Day
$0.3379 – Key Resistance
$0.2904 – Key Support
$0.2679 – Key Structural Level
Cardano is a recent asset that’s caught my attention. It’s been in a parabolic uptrend and shows no signs of stopping while we can our bullish structure at the 0.382 level.
The Crypto Lark: Emerging Crypto Trends
Lark Davis (@TheCryptoLark) is New Zealand’s most popular investing and bitcoin personality. He provides educational content on Youtube and has managed to grow his channel to over 175k subscribers. Lark also writes a newsletter called Wealth Mastery.
Things I learned:
You don’t have to sell everything at once. Taking out your initial capital soon and laddering out of your position as the market trades higher is a good way to slowly reduce risk on a position.
You don’t have to perfectly time the market in order to make money. Most people make their money by simply being on the right side of the trend.
The really big returns in crypto will likely not come from bitcoin anymore. In order for bitcoin to go another 10x from its current price ($40,000), it would have a market cap of $7 trillion which approximately matches the entire gold market.
If you compare Polkadot right now to Ethereum in 2017 it is very interesting to see how much is being built on Polkadot and its ecosystem.
Remember to pay yourself during the bull run. There is life changing money to be made in this market and if you play your cards right, you can really alter your financial destiny.
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Disclaimer: The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. I am not a financial advisor. Every investment and trading move involves risk. Do your own research when making a decision.
