Last night the SEC approved the closest thing we have ever had to a Bitcoin ETF. Let’s be clear, it is NOT a Bitcoin ETF but instead an ETF made up of companies that are heavily weighted into Bitcoin by either their revenue or their holdings. Some of the companies listed on the original announcement were Microstrategies, Marathon and Bitfarms. It is interesting that RIOT was not on the initial list but I have a feeling it will surely be added.
So why do we care about 9:30 EST? That is when you can hear the opening bell of the New York Stock Exchange ringing to signal to all floor traders that the market is open! The idea is to see if not only Bitcoin reacts as their are institutional buyers in the stock market that have access to buy Bitcoin but also to see if companies like MARA and RIOT will see renewed interest.
This situation is what we call Fundamental Analysis. Fundamental Analysis is used heavily for Investors and a little less so for Traders. Fundamental Analysis is not only diving in deep to the core structure of a company, it’s executive board, it’s money flow, debts etc but also any relevant news that can shift the opinion or value of a particular stock.
Fundamental Analysis is one of the reasons Crypto gets recommended over Tradition Stocks for most new Traders. There is far less Fundamental information to wrap your head around when you’re trading Crypto as opposed to the Traditional Stock Market.
SHIB had a beautiful 42% drop but was unfortunately 4% away from our re-entry. Sometimes the good ones get away from you. There were traders that were able to enter on the bounce but there are two things to keep in mind for something like SHIB that can make you a bit more conservative on your entries.
- New Coin/No History – SHIB came out in May and was newly listed on CB a few days ago.
- MEME COIN – There is nothing specifically wrong with MEME Coins but they do attract a different kind of buyer and therefore a different style of trading. Sometimes its best just to watch the first couple cycles before risking money on the trade
When it comes to trading – especially for new traders – we recommend you Never Chase. For example, we missed our re-entry into SHIB so we dust off our jeans and move on to the next trade. We will not start buying above our original entry in an effort to make sure we have some SHIB in our pocket. There are strategies that can help you enter after confirmation of a Pullback. These are things we teach in the more advanced lessons.
What else is HOT!
FTM has hit it’s Resistance at $2.26 and oh what a wild ride it has been. There were entries at 0.40 and 0.70 with initial targets from 1.34 to 5.16. We can see some hesitation here at 2.26 and there is a chance we see 1.80 again. If that is the case – FTM would be bought on the dips.
TROY is a bit of a wildcard but we started watching this two days ago. The issue is the Volume is very low. 0.0158 was our first local area of resistance that made us very interested once it broke. We are still looking for around a 100% move up to 0.0307. TROY does have some very nasty wicks on its daily chart and is not recommended to trade for beginners.
Troy Trade is a global prime broker specialized in crypto trading and asset management. It provides crypto brokerage services for institutional clients and professional traders with products such as spot & margin trading, derivatives, data, custody, lending, and staking in one account.
BEAM is another very low liquid coin and is much more suited for advanced traders with smaller capital. BEAM broke 0.6114 and we’re up 32% from that point. Looking at a plus 200% move for BEAM over the course of the next month. 1.9129 is the area we are most interested in. Again, super low volume and not for beginner traders but certainly something to watch.
BEAM is a confidential decentralized finance (DeFi) platform that runs on a combination of two blockchain protocols (LelantusMW and Mimblewimble).
In the early years of the industry, transactions with public-blockchain cryptocurrencies like Bitcoin (BTC) were thought to be untraceable. With developments in blockchain analysis, it became clear that transactions can actually be traced back to the senders, posing a great threat to users’ privacy.
To solve this issue, BEAM came up with innovative ways of increasing the anonymity of transactions, address balances and user identities.
Beam runs on the Mimblewimble protocol and was launched in March 2018.