Introducing “Crypto Trade Shots”

A weekly news and trading piece by Scott “Shooter” Henderson covering crypto currencies.

Kirk & Shooter’s Crypto Thesis

The short story is that most cryptocurrencies are going to zero, but there will be survivors that rise to much higher price ranges. This is a journey of separating winners from losers.

We expect Bitcoin and Ethereum to be among the biggest, if not the biggest, winners. Along the way, we can trade the larger moves for added gains.

What You’ll Get

Each week you’ll get what we are finding in the world of crypto, NFT and/or DeFi news that is most important. You’ll also get Shooter’s investment and swing trade ideas. This week, we start with Shooter’s picks. More news and commentary in future weeks. Sign-up for our free “special reports” to get the next 6 introductory pieces for free.

Shooter’s Crypto Picks

It time to seriously consider what percentage of your portfolio should be held in the Cryptoverse. Crypto is still very speculative. However, the risk rewards is unprecedented in recent history. Stay tuned as I jump into Defi, Pay-to-Earn gaming and others shinning stars in the new year.

Make sure to adhere to a rules based approach to trading using technical indicators. And, we highly recommend trailing stops and/or stops at preset technical levels.

Follow along in chat if you are going to swing trade a portion of your account. We recommend starting with trading 5% or less of your total portfolio and no more than 20% even as you gain experience.

CHART USER GUIDE

Continue to scale in small on all entries!

“Next Entry Window Long label” or “Set-up Long Label”.

Crypto Weekly Trades

XBT/USD The Bitcoin whales are calling for a $69,000 print by year end. Frankly, it’s plausible, but I’m not betting on it. My thinking is a we have less than a week, so we either flush toward $45K or push towards $55K to finish out the year. In any case, I’m Thinking we have a few dips left below $48,000 if any. I’m calling for $79k Bitcoin by year end 2022 without federal regulation, with positive regulation maybe $100K. Keep in mind a 5% global adoption is a $500K Bitcoin. This is just the 1st inning.

ETH/USD ETH/USD Ethereum is putting in a nice launching pad into year end. Yet we are starting to see Alt coins weigh on prices. High gas fees aren’t helping. On the other hand, Ether staking is robust and poised to sustain Ether’s rise toward $5,100 resistance into the New Year and beyond, as I can clearly see a shot at $7,500 into the 3rd quarter 2022 and we could very likely see a headline of “Ethereum $10,000” soon after. We may see a slower progression moving forward in the short term but it’s hard to imagine any other trajectory than straight up. I think the question is doe’s Ether keep the lead? You can read about institutional staking here. Frankly, at a 5.2% yield I can’t help but think it will become a huge driver in years to come. In addition, many people don’t realize that 1% of Bitcoin is wrapped on the Ethereum network. So, as Crypto develops Ether and Bitcoin become more dependent on the other strengthening both spaces. I see that trend continuing well into 2025.

Screen Shot 2021 12 06 at 9 36 05 AM
Source: Beaconcha.in
Bitcoin / US Dollar Pair Weekly Chart

CRV/USD Curve is an up and coming star in the Defi space. Curve allows investors to avoid more volatile crypto assets while still earning high interest rates from lending protocols. You can read more on it here. My outlooks puts this in teens into 2022 or soon after. Stay tuned for additional notes on staking.

Ethereum / US Dollar Pair Weekly Chart

AXS/USD Axes has been on tear since Oct, where it broke out from a symmetrical triangle reaching all-time highs. Though it retraced afterwards. I’d call that heathy. As buyers came right back in and ran it to $135. It continued into Nov and reach new all time highs at $164. Of course, it had a healthy correction and again buyer came in and it bounced back to horizontal support at $135 and began this second up trend. The $181-$186 level should be our next target. While scans tell me we could see $300 as soon as next fall.

AXES US Dollar Pair Weekly Chart

SAND/USD Sandbox is one of the biggest up and coming trends in the Metaverse claiming to be a virtual world where players can build, own, and monetize their gaming experiences using the Ethereum blockchain. Sand is at the forefront of those trends and should continue to expand as more players enter the space. Looking for a $22 print in 2022 and beyond. Yet, the Billion dollar questions is how high can it go with Zuckerberg and others opening the flood gates on “play-to-earn” gamming platforms? Clearly, Sandbox has a nice lead by securing over 50 partnerships including Atari, Crypto Kitties, and Shaun the Sheep to build a fun, creative “play-to-earn” Games.

CTS Article Archive

Scott Henderson’s Risk Disclosure & Disclaimers

Follow Shooter on Twitter @swingtradenotes for his quick thoughts.