A weekly Crypto trading piece by Scott “Shooter” Henderson covering crypto currencies. Kirk Spano provides seperate analysis of where the broader “macro crypto” space, including, NFTs, digital contracts, the Metaverse, taxation and DeFi are headed. Read his free Kirk’s Crypto pieces.
The short story is that most cryptocurrencies are going to zero, but there will be survivors that settle at much higher price ranges. This is the journey to those higher price levels.
These early pieces will be open to all so you can get to know us. Crypto Tracker will move to a paid membership soon. Subscriptions will be only $199/year for founding members with another service.
Kirk & Shooter’s Crypto Thesis
Our thesis is that short term price is only a reflection of either fear of missing out or weak hands getting shook out. As adoption continues, certain Crypto, in particular Bitcoin and Ethereum, will continue to increase in value over time. Along the way, we can trade the larger moves for added gains.
Shooter’s Crypto Picks
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.
Continue to scale in small on all entries!
“Next Entry Window Long label” or “Set-up Long Label”.
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.
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.
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.
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.
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.