A lot to talk about today, as we're going to be covering Bitcoin , Ethereum , & Ripples Technical
Analysis, as well as BNB and why I’m holding the Binance coin right now. Then there is some
awesome headlines to talk about Fidelity Institutional Investments coming into this market were
going to be talking about Tether not being backed by actual Fiat and what you guys need to do
about that, alongside with Facebook building a new crypto currency and why that's important.
We're also going to be looking at daily transactions per day and BTC dominance as things are
starting to cook up.
Getting right into this BTC you can see we are starting to rise up towards this
very strong resistance at 6k USD, you can see it acted as previous support multiple times and
as we know, if you guys are traders anything that was previous support that's broken down is
now going to turn into the next resistance. Looking at where there is a potential opportunity in this
market I am assuming that we are most likely going to see a pullback at the 6k level and if you
guys watched my TA from the last few weeks. We've been following the consolidation trend that
I expected and we are also testing these highs, but I believe we are going to see a healthy
pullback towards this support right around that 4950 levels but possible another consolidation period
around 5500-5800 along the ascending support line. If you haven't gotten your position in
BTC as we know we are starting to see a lot more momentum in this market, in my opinion,
it is time to start Dollar Cost Averaging into BTC . We are starting to see this long term
downtrend starting to curve up and we are seeing this correction come to end and a new bull
market starting to emerge. I wouldn't be surprised to see BTC pullback towards these moving
averages as you can see we got the 50 100 200 MA, it would be a healthy pullback to see BTC
drop down to these 5k levels.
Looking at the you can see we are heading towards these overbought levels as we do not
want to stay at these levels for too long.
I do want to mention that I am still very about Bitcoin in the long-term looking at the chart
of daily transactions per day, you can see here we are starting to maintain these
300-400k transactions per day levels and these are the same highs we saw in 2017 when
Bitcoin was at 20k USD and as you can see we've been staying at these higher levels which
now we're looking to see how long we can stay there.In a fundamental sense, we are still very about
BTC and we are going to go over some news articles to prove that point.
What is also exciting is if we look at BTC markets dominance we are starting to head
towards these higher levels at 55% and that's actually one of the same highs we saw recently
on Sept 10th of 2018 we haven't been at these highs since then, that is a very positive thing but
please note that we for sure know that there is a for BTC and we don't expect it
to just shoot up out of nowhere there will most likely be a healthy pullback as we look at the
of Bitcoin .
Diving right into some News Headlines:
“Institutional Investment in cryptocurrency likely to grow, 22% of
respondents have already purchased cryptocurrency if the survey accurately represents
institutional interest. This is a remarkable increase from the near-zero institutional investment in
2016.” What's really cool is I had a chance to sit with Brock Pierce, he was part of the founding
team of EOS, working alongside Jed McCaleb, Dan Larimer, and even some other big hitters
like Roger Ver, he’s been in the sphere since World of Warcraft coins and is one of the founders
of the largest fundraising funds in the cryptocurrency sphere. He is a Billionaire in this market
and I had a chance to sit with him at a private event and what's interesting is that he mentioned
Cambridge Analytics, which isn't related to Cambridge Analytica which was involved in that FB
Data Scandal. This is a separate company that works with institutional funds that help create
benchmarks for these funds to invest in and at the same time choose the safest investments.
Brock mentioned, that two months ago for the first time they added blockchain & cryptocurrency
as 30 points of recommended investments in their funds.
So as this report from Cambridge Analytics goes to most of these institutions we believe it
represents over 300 billion dollars. What that means is that over the next few years we are not
going to see these funds just jump right into BTC since there is a lot of compliance paperwork
they have to go through to start investing in new assets.
This article is proving Brocks point as you can see where it says “more promising is that 4 out of
10 respondents are open for future investments in cryptocurrency in the next 5 years, if the opinion
remains unchanged this means that institutional investors can increase by 18% over the next 5
years.” So if only 22% right now have already purchased cryptocurrency and we see another
18%, that's 40% more institutions investing in crypto, and I believe that's exactly what we are
starting to see and it's proven in the daily transactions per day, BTC dominance, and as well as
Looking at ETH TA we are below this this is a which is showing a
momentum. We broke major support right around that 3 million satoshi mark and we
are starting to head towards that 2600 level, that's the first target that we have from our previous
support. Also looking at the we see divergence and constant rejections below 40,
anything below 40 is considered , overall not looking so good for Ethereum .
Looking at Ripple TA it is very similar below the , below all MA, broke major support,
headed towards its next target right around that 4k satoshi level. Looking at the very
, multiple rejections below 40 not looking so well.
Finally where I've been hedging the majority of my crypto has been with the Binance Coin. As
you might remember I made a video in Jan 2018 last year stating that the best performing coin
of the year would be BNB. It was the top performing coin of 2018, with my experience of over 9
years it's clear that use case is what creates intrinsic value and that's what we are always
looking for with these coins. BitTorrent coin is a coin that I'm very optimistic about as well, it's a
very long term trade for me.
The Binance Coin is looking very interesting we are seeing a because of Bitcoins
current rise but once again Bitcoin is started to head towards this resistance and that's
actually allowing BNB reach to hit the 50 MA. I can see this as a very strong entry point because
of that 50 actings as support and it would be a good bitcoin hedge. What I also like about keeping
my money in BNB is we are seeing the very strong on a consistent basis and a constant
uptrend and its held very strong over the past few days, we expect the next target to be around
that 50k Satoshi mark. If we look at the is in the neutral showing very good support, looks
like a good player to currently to be hedging with as BNB is trending up.
Moving onto some more news, this is a very interesting article about Tether. As you can see it
states “ Tether confirms 26% of its USD is not backed by Fiat” and they are being sued by the
US Attorney General's office due to the fact that they were hiding they lost a good amount of
money and decided to just print more Tether to cover it up, which is a very big deal. So I would
not be holding USDT at this moment. I would be using USDC TUSD and there is a lot of other
Looking at this next headline, a lot of people are talking about FB Building a Crypto Based
payment system lets talk about why this is extremely important you can see here “FB has been
building a stable coin backed by fiat and recruiting dozen of financial firms and online merchants
to support the financial crypto ecosystem which is very good for growth and mass adoption.
But what's most interesting is this part is that Facebook was looking to raise 1 billion USD from
investors and the report confirmed the money will go towards backing its stable coin. If you see
a billion dollars enter a market that's currently at 180 billion in total market cap that's going to
bring the market cap a lot higher.
Understand that when you are looking at market cap the figure is the total evaluation of all
coins, the actual liquidity is a lot less than what the total market cap is, so 1 billion USD can
make a very big impact . If we look at BTC latest huge move, it was a $100 million dollar order
that brought BTC up about 23% in 1 day. If 1 billion dollars that Facebook is already collecting
from investors to create a stable coin that would theoretically have us see a 10x return of this 23
% that's over 100-200 % gains just from Facebook putting 1 billion dollars into this market and
that's why I am extremely and I hope you are too.
Chart by Avalontrading
Analysis by Naeem Al-Obaidi
money and decided to just print more Tether to cover it up, which is a very big deal"
This is why I originally bought into Bitcoin and still hold bitcoin. There is a finite amount. Even if you fork it into something else there will never be more than 21 million BTC. For that reason alone I do not buy into these unlimited "me too" coins.
I bought BTC to get some of my wealth away from the unlimited printing press.