BRF #13 Elon Musk
Elon Musk Effect
If you have been paying attention today, you will have noticed how strange the last 24hrs have been. It would seem like all in one day we had Tesla stop accepting Bitcoin for payment (as if anyone was gonna do that anyway) and Elon Musk come out against Bitcoin, we had a false story come out stating the DOJ/IRS was investigating Binance and seemingly commentary coming out all over the place from people on crypto. Odd day for sure….
Elon Musk apparently did a full 180 on Bitcoin and now is all-of-a-sudden very concerned with the carbon foot print of Bitcoin mining. Which is interesting considering the fact that Tesla’s footprint isn’t that great, yet investors ignore this fact. This commentary helped roll over the markets both Tesla and Bitcoin responded negatively and almost immediately started selling off.
This confused a lot of economists and bigger crypto influencers like Michael Saylor who ended up getting into a debate with Elon throughout the day.
To which Elon responded with the following links, if you wanted to read them, its here, here and here. Here is a great article on common misconceptions about bitcoin while you’re at it.
Even the original creator of doge himself came back online literally to just sht on Musk and tell him to shutup.
What’s funny about all this is Musk is still promoting Doge which is also POW (proof of work) so therefore is creating the same issue he is complaining about with Bitcoin.
Musk attempted to later clear up his commentary, but it was too late and the damage was done.
A lot of people really don’t like Elon Musk anymore, which if bitcoin commentary is really the defining thing for you to like someone, maybe creating false idols is really the issue you should look at.
On the same day not only do we have Michael Saylor announcing that he bought more bitcoin but we also had over 12,000 bitcoin get bought and moved off exchanges ( 10,004 BTC coinbase pro, 922 Binance, 217 Okex), so everyone who panic dumped their bitcoin, went right into this whales pocket. Mark my words, there will come a time when exchanges have no bitcoin and they will get you to do the same exact thing to fill their bids.
We have seen coordinated attacks now like this in the past, the most recent would be the coincidence attack on XRP with the SEC story.
Lets roll right into some charts…
Bitcoin Charts & Analysis
Bitcoin was already looking weak, so whether you think news drives price or price drives news, doesn’t matter the weakness was there in the markets, just needed a little push and they lined up the stories pretty well throughout the day to help punish weak hands.
Not much has changed for bitcoin, on the daily it looks like we are forming a SFP (swing failure pattern) meaning the bears tried to push it down but couldn’t (also keep in mind there is still 14hrs left on this candle)
The line is holding us up, overall structure still remains bullish, even though there is ground to cover. We could see a pullback to low $40ks and it would still be bullish, but would have to see how things look if we lose this range we are in and close below.
On the 4hr there is some bullish divergence, we see same thing on RSI and waning bearish momentum on the MACD.
ETH Charts & Analysis
ETH looking like a clear U shaped recovery so far as we came down and touched the top of the previous flag we built momentum to break out of (red line). Keeping my eye on the 618 fib level which is purple line on the chart below to see how it interacts with that level. If it rejects and we start to treat as resistance then its safe to assume we go lower, we break above and treat as support then game on.
Its that simple, if this then that on ETH. We are either just testing the top of the breakout range again or that was it and we breakdown further and re-asses from there.
ETH/BTC
This chart on a 3d looks the same, we are in a clear uptrend, ETH leading the way still.
Altcoin Charts
LTC
Got just a few key lines tagged here, if you look back left these lines are points where we had a strong rejection at some point (showing clear bearish bias towards that level) or both strong rejection and support. Top two lines are just rejection points to watch out for. You can also see waning bearish momentum on MACD, RSI ticking up to converge with price going up. No real clear edge at this point.
BNB
We had the big blue flag pattern drawn out along with green box (go back in previous emails), it hit green box and then rejected essentially 3 times now. Three strikes and you’re out as they say, price found support on the top of the flag, even with the fake DOJ and IRS story on Binance breaking today.
Checking oscillators you see waning bearish momentum on MACD and RSI converging with price so far. No real clear edge at this point.
If there is no clear edge I don’t trade, its that simple. I wanted to add in some news like Coinbase Revenue Tripling, but we are maxing out email length (as per usual) so will cut the news segment for today.
Below are links and resources that hopefully help you with your trading while supporting us.
PrimeXBT
This is a crypto & stable coin in/out platform that allows you to leverage trade crypto, major indices and currencies worldwide as well as follow successful trade ideas from other traders. So if you live in Asia, you can trade major S&P stocks and vise versa, alongside major crypto pairs.
Binance Exchange
By far still the largest exchange, if you want to trade majors and a huge selection of alts and defi, not to mention the Binance Smart Chain projects!
FTX Exchange
For non-US residents who want to trade leverage on bitcoin, alts and trade futures contracts on crypto and stocks.
QuanTower
A tool like this is valuable because its a lightweight desktop software that connects via api so even when the front end site goes down during volatility, you can still trade. This happens the most with sites like Binance and FTX. They integrate with tons of exchanges in crypto, forex and options space. Videos coming soon!
NordVPN
Need a VPN to help access exchanges or keep your data private? I have been using Nord since 2017 and have had maybe 1 or 2 issues with IP address. They are one of very few companies we turns down government attempts worldwide to “share data” and are often voted as one of the best VPNs. 2yr deal currently 68% off!
None of what I put in these emails is intended to be taken as investment advice, there is no BUY/SELL calls in these emails, nor is this any kind of signals group. There is obvious and inherent risk involved with trading cryptocurrencies or any asset, that must be taken into consideration by the investor. Any and all outcomes are your fault good/bad!