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10/26/2021

A string of articles have come out recently that will make you consider crypto and the potential around the emerging industry. Here are a few article headlines that I will summarize and explain why this is really important to the market as a whole.

Tesla May Restart Crypto Transactions Again

Several months ago, Tesla decided to stop bitcoin transactions because of environmental reasons. However, the EV and space exploration founder is a firm believer in the future of crypto and has said that he would continue transactions should the amount of energy from mining start to make less of an environmental impact and become cleaner and more efficient.

Citi Starts Coverage of Coinbase With $415 Price Target, Says ‘Buy Crypto’s General Store’

More implied volatility could be leaning toward the bullish side of crypto as Citi gives Coinbase a price target of $415. They describe Coinbase as the hub for crypto investing that they call crypto's "general store". Although the company's price is very correlated with the performance of crypto, it also provides a service for those investors looking to invest in more than a coin. The sentiment Citi has around Coinbase, therefore, is staunchly correlated to the sentiment they have on crypto as a market. A $415 PT is also a statement towards further gains from bitcoin and other major altcoins.

Bakkt's stock surges on Mastercard, Fiserv deal to broaden use of crypto in payments

BKKT, previously known as VIH, completed its merger this quarter and is now making a deal with Mastercard to work out a simple way to make crypto transactions. Not only is money and technology flowing into this industry, but major institutions and investors are gearing for mass adoption. Bakkt is one of the potential major competitors against Coinbase as it expects to have about 30 million users on their platform in the coming years. More competition, money, technology, adoption and attention is going into this space which can only mean one thing: the market will just keep getting bigger.

Whether it's stocks or individual coins to invest in, I think it's imperative to look more into this space if you are a speculative investor trying to find that once-in-a-while opportunity that could potentially stack your portfolio.

10/22/2021

Although bitcoin is pulling back from its all-time highs above $66K, there is sill an argument for the coin's potential that could help the bulls in the not-so-long-term. BTCUSD is down 1.89% on the day today after a 50% rise in price for the month of October.

Our outlook

The argument for bitcoin is that the new fund (NYSE: BITO) will attract tens of billions of dollars from investment. The crypto market is still in its early stages of growth now that money has only been heavily flowing into this industry within the past couple years. And now, with this new ETF, investors can indirectly invest in crypto without taking on the large risk from direct investment in the coins. This will also bring around a lot more attention to the crypto market as institutions will likely take stakes in a tradable fund on the NYSE.

Trade Setups

BTC/USD

Price is pulling back for the first time in several days after a monster run to new highs above $66,000. On the 1D chart, the crypto could find mild support at $57,000 and $52,000 if price continues to fall. If today's candle can close above the $58,923 level, it would be a good sign that price might have a bottom at that point.

10/19/2021

Another great week for this value coin is taking price closer and closer to ATH around $65,000, as investors eye the last psychological level of resistance in the way. A new crypto fund debuted on the NYSE this morning which was the first traded fund on this exchange marking this event as a big step for the crypto community.

Our outlook

Whether we support or not, more money and technology continue to get piled into this industry, and the best minds in tech are working to improve security, business, transactions, etc. In just the month of October, bitcoin has climbed over 50% and 115% from July when it hit the lows. I think it's very possible we see another test at the all-time highs in the next few days to week, judging purely off this recent surge in momentum.

Trade Setups

BTCUSD

Price made a higher high on the 1D chart and inches slightly higher towards ATH at $65K. Because of the already-big move, support is way below around $53,000, but momentum suggests that a move to the $65,000 is more likely than a 15% decline. If price can break this major level of resistance, we may see an additional leg higher with increased momentum on the break.

10/5/2021

The entire crypto market is up overall going into the New York Session, and Bitcoin is currently above the $50K psychological level at the time of writing this. Price has not seen this level for about a month since bitcoin was crushed by China's continued pressure on the market.

Our outlook

Just like any market, crypto goes through cycles of uptrends and downtrends. However, in a relatively new and emerging market, we can see upside for an extended period of time with momentous returns. And the same applies to the downside, but money can be made both ways. The first level for bitcoin was that golden cross we talked about a few weeks ago in this article. Now, it seems that the crypto will have to maintain price above $50K in order to continue its bullish move. Otherwise, we will likely see a retrace.

Trade Setups

BTCUSD

Bitcoin is currently above $50K, and formed new support around $49,246. I think it will be important to watch price action closely today to see whether it can stay above this level. $51,031 is the next potential resistance level on the 4H chart if price keeps running up, and it looks like we could very well see that level get tested today. In short, if bitcoin closes the day above $50K, I think this crypto will likely have enough momentum to catch another big run to the upside.

10/1/2021

After a brutal month for crypto, stocks and gold in September, sentiment is beginning to change once again which could land us in another cycle of bullishness. But it's hard to decide where to put your money to get the best bang for your buck. Here are three ways you can tackle your investments this month:

  1. Buy the market that got beaten down the most

The US stock market fell well over 5% this month as the Fed kept sending us mixed signals as to whether or not they will taper or not this year. Global equities struggled as well which turned into a mostly risk-off sentiment. Bitcoin fell as low as 18% last month after fears of China's crackdown put more pressure on the coin. In my mind, it seemed that the turbulence in the stock markets were more justifiable than the sell off in crypto. We already knew China was banning mining and transactions, but price sold even further in September. So looking towards a big move to the upside in crypto could be the better play.

2. Go risk-off

Times are still highly uncertain and very unstable when it comes to monetary policy and market sentiment, which could lead you to believe that things will continue. This could be very true, and the economy could continue to suffer; we have seen several weeks in a row of missed jobless claims expectations and higher-than-expected inflation rates. If this persists, gold could start seeing more demand. Or if economic sentiment improves, the USD might see another rise from the expectations of tapering and raising rates.

3. Just buy everything (read below)

Some experts would argue that diversification is the best way to invest, and usually, I don't think so. However, price action in September took most everything down. So there could be a chance that everything improves; if we saw gold, crypto and stocks fall last month, then we might just see an improvement in all three markets. Two may recover less than the other, one may recover worse, but this sets you up for the best chances of at least one market rebounding well. US stock market goes up more often than not, gold goes through month-long swings in either direction, and crypto has the potential to give you thousand percent returns.

Either way, there's lots of ways to go about this other than these three suggestions, but I think it's important to consider these three way before you set your heart on going all in on one thing. Figure out which could be best for you and your investment strategy. And remember to practice good risk management!

9/24/2021

The People's Bank of China banned all crypto transactions on overseas Chinese services along with its domestic ban. Bitcoin is down over 8% today and Ethereum is down 11.48%.

Our outlook

I think we're seeing a lot of noise around China and their condemning of cryptocurrencies before they digitize their own. In the short term, this puts a ton of pressure around these digital coins, but lower prices seem like they're setting up better deals for long term success. Mining has already moved away from China as mining activity is starting to pick back up elsewhere. I think we're seeing another sale of cryptos: bitcoin below $40K and Ethereum below $3K seems like great spots to consider getting in.

Trade Setups

BTCUSD

Bitcoin just under support in the $42,000s and possibly making a higher low on the 1D chart. The golden cross is still relevant for this pair, but COT will have to pick up some and help out price action. Additional support lies underneath around $37,300s.

ETHUSD

Price action is the same for ETHUSD as it looks to be making a higher low on the 1D chart. Price is just above its 200 DMA which could act as support should price fall all the way back down to this level. More support is under around $2438.

9/21/2021

Bitcoin Update

For the past month, Bitcoin went on a tear rising over 20% from the beginning of August. Recently, however, China and other risk-off factors have contributed to a 23% decline from the recent highs around $52,760. Now the most prominent crypto has touched these monthly lows which could be a potentially good deal at this level.

Trade Setups

BTCUSD

Bitcoin on the 1D chart fell back to the low $40Ks and rejected the lows on the latest daily candle. Price is below its 50 and 200 DMA, but there was a golden cross on this timeframe (50 crosses above 200 DMA). This golden cross along with the bounce from the lows could signal a move to the upside for bitcoin.

9/7/2021

El Salvador is now the first country in the world to be accepting Bitcoin as its national currency. The country just bought 400 BTC as it plans to go full adoption today. On top of this, crypto mining is starting to come back after it was banned in China- where the majority of global mining was located.

Our outlook

For countries that are struggling with their current monetary system in Latin and South America, the crypto adoption seems like the best option from their point of view. And this only means more usage, mining and transactions for Bitcoin while mining is now not centralized in a single place like China. More and more companies will probably come out of this emerging industry and will find ways to make the transaction process easier. And it all starts with adoption, from there more and more doors will open for this market.

Trade Setups

BTCUSD

BTCUSD on the 4H chart dipped hard today as price comes to support around the $50,500s. This level served as a previous high and a double top on this timeframe, so it could serve as a strong level of support. If not, price can find more support around the $48,800s.

ETHUSD

Ethereum looks like it's getting ready to rebound on the 4H timeframe as it rejects the lows from the 50 SMA and is currently riding it. Additional support sits under around $3380.

ADAUSD

ADAUSD Cardano came down near a bottom on the 4H chart and is rejecting the lows. If price can bounce from the $2.50s level and stay above, this could be a potential area to look for long setups.

8/3/2021

All of the allurement around the crypto community has to do with the fact that most transactions are anonymous and independent form any national regulatory system. But, the new Infrastructure Bill introduced by Congress could stop the crypto tax loophole that investors have used to avoid reporting to the IRS, and lead to a more traceable market of transactions. Now these digital assets will be treated as assets to the IRS, which means any kind of cryptocurrency trade or transaction will be counted on your capital gains tax sheets.

Our outlook

An argument for the increased regulation and oversight for crypto from this Bloomberg article actually makes sense to me. Gary Gensler, SEC Chair, argued that an increase in regulation would mean more investor protection from fraud, which could lead to more adoption of cryptocurrencies on an institutional scale. How tight of a grip should the government have in the altcoin market, I don't know. More regulation will probably hurt the market in the short term before analysts start finding any kind of benefit of oversight.

Trade Setups

BTCUSD

Bitcoin forms a lower low on the 4H chart as price action looks weak right now. Further support lies below around $36,381. $40K still serves as a psychological level to break, and bitcoin's recent retracement looks like it will be a tough level to break.

ADAUSD

Cardano looks like it's forming a triple top on the 4H timeframe as price is showing some rejection from the highs at the time of writing this. A break in this resistance could lead to a run up to 1.494521, but a dip could take the coin back to support around 1.262134.

ETHUSD

Ethereum on the 4H timeframe broke and closed under a rising trend line which could send price to support around $2,415. The most recent high on this coin is around $2,699.

7/26/2021

Bitcoin, dogecoin and Ethereum all had a great weekend and are now starting off the week strong as BTC is up over 8% on the day nearing $40,000 again. The crypto has seen more growth in the past few days since April of this year. The altcoin market has been in a steady downtrend since then, but the recent breakout is catching the eyes of lots of investors. Tesla and Twitter CEOs have been talking about how they will start to incorporate bitcoin into their business, and speculation of Amazon beginning the adoption of crypto payments has pumped price this weekend.

Our outlook

For one, I'm glad the consolidation zone held up for the past couple months because that suggests how strong this level of support is in the long run. Additionally, Amazon's potential acceptance of bitcoin was not the best piece of news. For the past several weeks, institutional money has poured more and more money on each dip as they accumulated their stake. I do think that if bitcoin can hold its own above $40K that would be a really good sign for the bulls as breaking that psychological level could help price reach further. And every heavy spike in crypto usually means a continued move to the upside. Now that we have sustained and broke out of consolidation, price will probably test resistance around $40K before breaking or retracing.

Trade Setups

BTCUSD

Bitcoin popped up above resistance after breaking out of a falling trend line of the 4H and its consolidation zone. Price is still hovering in the $38,500s, but the long wicks rejecting the lows make it look like price wants to push higher. Resistance around $40K.

DOGEUSD

Dogecoin mirroring the performance of bitcoin as it breaks out of its consolidation zone as well. Price did come back to test the top of the channel it broke out of, and it looks like it will bounce off. If we get a long wick at the bottom of the candle it could suggest further upside.

ETHUSD

Ethereum up over 6% today and looks like it's forming a double top on the 4H timeframe. However, the coin could test this resistance level again around $2,406. A break in this level would be a good sign for the ETH bulls.

A1 Trading Company

A1 Trading Company is a financial services and media business founded in Atlanta, USA.
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