Buffett & Munger
Well the annual Berkshire investor meeting took place the other day and as you can expect there was some interesting commentary towards crypto. As I am typing this Eth crossed over $3140 and I saw several other coins hit all time highs today. Its clear that during a time when Americans and people all over the world are feeling like they need to get ahead, that something like risk assets which strive off speculation would in fact start to see insane volatility. We covered this in the last issue, but just look at how many weird speculation vehicles are pumping right now from vintage video games to trading cards.
Like many others, I tuned into some of the Berkshire investor meeting which was all virtual this year (of course) because I wanted to hear if their viewpoint on Bitcoin and crypto had changed or what they thought of the future essentially. Well, can’t say I was disappointed to hear them still completely cemented in their beliefs and ideals, after all they are both in their 80s-90s now. Its really hard to change worldviews and be open to new tech at those ages.
Buffett gave a story about how he new a senator of Nebraska who would dodge questions he didn’t want to answer and went on to use that same excuse to not answer and passed it onto Munger. Buffett acknowledged that there were more people that follow him that were long bitcoin and only a few that were short so it was better if he didn’t talk about it.
Munger on the other hand didn’t hold back, a few quotes
”Why would I invest billions into some new currency that released overnight”
And my favorite...
“Of course I hate the bitcoin success, and that the whole development is disgusting and contrary to the interests of civilization”
Yuck, those are the words of a bitter old man who is more upset with being wrong then just accepting change in the world. Will be interesting to see what he thinks when we swap over to central bank digital currencies…
In This Issue:
Buffett & Munger
Weekly Giveaway
Bitcoin Thoughts & Charts
ETH Thoughts & Charts
Altcoin Charts
Uponly Tv Changes Another Life
Fundstrat’s ETH Target
Sponsors & Recommendations
PRIMEXBT Weekly Giveaway
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This week we are going to give it to best comment again but this time instead of just randomly picking a comment, share with us your best trade ( could be from an ROI standpoint or a trade that you’re most proud of) and best comment wins. I will pick multiple winners if we get that many shared!
Comment below for your chance to win! Winner picked by Wednesday
Bitcoin Charts & Analysis
Bitcoin seems to be taking a slight back seat still to ETH which is just printing green candles since the end of last week. So last issue I painted two squiggles and so lets check in with how that went. The HL that we did get wasn’t that deep actually, so don’t think a lot of late longs got filled there over the weekend, and now its back above red dotted line which is the neckline to the inverse H&S pattern.
This is what I usually like to look for, many patterns/indication playing out at the same time or at the same zone (not target, prices don’t move in exacts, layering in and out of positions is much better)
I think BTC could move much higher but one-day at a time, lets get back up to the green box and then go from there. There is also a nice bullish engulfing playing out on the daily.
I think at some point ETH is gonna cool off here and it will be bitcoins turn to pump, which will also mean alts will probably cool off as well.
ETH Thoughts
ETH is leading the charge here and dragging up bitcoin and other altcoins along with it. As I type this ETH is still pumping, well into $3200 now, and getting to be quite over extended. I am expecting this to cool off sooner than later.
Quite a bit to cover here on ETH, the green box was my original target for ETH and where I took profits, which is a key fib area where several patterns played out. Now we are extending well beyond that. Keep in mind the more an asset over extends the harder the fall when it does correct, now assets like BTC and ETH tend to not hyper extend like alts and low caps do but we could see this run up to 2.618 level ($3500ish) now that its in price discovery.
Altcoin Thoughts
SRM
This hit ATHs again today, I originally spotted that triple (quadruple, if you want to count it) bottom, which ended in a W pattern reversal (very easy pattern to spot, with high playout rate on higher time frames) and massive pump up to original ATHs, then it cooled down (where the rest of my position was stopped) and now today hit ATHs again. Not much to report here, MACD looks rocky but oscillators are converging (going with) with price.
LINK
Link and SRM are a few of the alt majors that didn’t have this inverse h&s pattern play out from the lows.
A few key levels to watch out for that line up with fibs and square ups are tagged in purple below. Also look at the rising steps up here on the 4hr closes, as long as bitcoin stays sideways and doesn’t mega pump or dump we should see link take off to the upside.
YFI
This is always a fun alt to chart, and its one that fell into that inverse h&s pattern with the purple line its been sitting on for days now being the neckline. This is usually very bullish for an asset to sit on top of a level/price area like this, especially if you look it allowed a bearish hidden divergence to play out while still on that level.
Green targets is first area I am looking at.
CAKE
This is a great example of a recent “alt major” that grabbed up market share and pumped from $9-$40 in just a few weeks, while massively over extending (like I talked about above on ETH) I rode a long up, sold too soon (first green squiggle) and then nailed the short from the top and am currently in that.
Never underestimate the ability for a non-major coin to pump well beyond fib levels and get into 1.618s, 2.618s etc.
Cake ended exactly how you would expect, with a nice double top, oscillators in over bought territory to create that divergence which essentially led us down.
On the way down now there has so far been a nice retest of blue diagonal line which painted a LH.
UpOnly TV Changes Another Life!
UpOnly Tv run by @ledger and @cryptocobain has started to create a reputation for itself now that its run two streams where the whole goal was to find great musicians streaming on twitch who had very low views (possibly 0 views) and get everyone to jump on their stream and create a donation link which has led to hundreds of thousands given away now. The first artist got over $80k donated to them, and today somewhere over $190k so far. Its kinda hard to track the ERC20s because some of the pricing is off. This is behavior in crypto I can get behind.
Fundstrat’s Target For Eth Is $10,500
I still remember back in 2017 when myself and others were calling for $33-$40k bitcoin, back then it seemed so hard to see! Well, similar could be said as Fundstrat calls for $10,500 target on ETH just a few days ago. Just as we are breaking ATHs and hitting $3k, is when we usually start to hear higher and higher targets.
BullRun Forever Updates
I just wanted to pop in a few updates here, first off I want to start streaming again so expect that to start back up soon, not sure the flow just yet of them as there is so much we could cover from macro to crypto, I do however want to start hanging out more so if you have ideas on format for the streams I am all ears. Also we are still working on securing a new video editor, I thought we had this locked down but a last minute change has us scrambling to find someone else now. This has been the massive delay with us getting back to regular video drops on the channel. Hoping to have that rolling this week!
Thanks for all your support and feedback!
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BRF#9 Buffet & Munger
As always, Chief, a fantastic write-up! Again, I'm not sure what the beefing among Berkshire Hathaway's top guns is all about. Their perspectives about the whole crypto thing lead me to believe that they are envious of the successes people have had in the crypto space because they didn't see it coming because if they had, they would have seized the opportunity. It's their fault, after all.
Anyway, just so I don't lose out on this week's giveaway :), my best trading moments occurred in 2017, when I participated in the HaasOnline trading competition on the Binance platform. That was my first foray into cryptocurrency trading. I still recall finishing the second or third best. However activities fizzled out from early 2018 and now, I am attempting to pick up from where I left off.
Meanwhile, I'd like to see some reviews of the best DeFi staking and farming platforms. I know you've tried a couple of these platforms, but your top three or five choices will be fantastic.
Cheers!
My best trade was my first trade when I exchanged USD for my first bit of BTC and took the dive into cryptocurrency back in late 2017. Mining, masternodes and smart contracts all followed shortly thereafter and I've been hooked ever since.