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.
Scale in small on all entries!
“Next Entry Window Long label” or “Set-up Long Label”.
Crypto Weekly Trades
XBT/USD Bitcoin closed the year at $45,530.30. Who knew? Well Fundi’s knew, or at least we knew it was an outcome from the first Crypto Tracker. I still believe history will prove we see very few prints below $48,000.00 again. That said, we could still see one more flush toward the 200 day. I’m not betting on it! We need Oil and Equities to come off for that to manifest. What I have noticed in the past few drawdowns is that margin calls from Equities or Bonds spill over into crypto markets and force weak hands to cover. That said, I’ve moved my Next Entry Long down $41,989.00, which was wave 3 of the 1st breakout. Technically, this chart looks weak considering we have already broken below $41,989.00 and went right to the off number 3 times at $40,252.00. So, make note of that price; it’s important. If that gives way, we could flush to the 200 day mark and retest the floor. I’d prefer that because then I would have conviction to get above my 3% allocation in Bitcoin. If we don’t get a back-test to $41,989.00, just buy the breakout at $51,844.40. In that respect, the 50 day should hold once we get above it. Like always, this is my bias not indicative of any future performance.
Bitcoin / US Dollar Pair Weekly Chart
Bitcoin / US Dollar Pair Daily Chart
ETH/USD The count suggests we print a $3,993.27, then we retrace $1,082 to the 50 day and print one final $2,910.47, and then head for all time highs. That count has shifted my short term bias. Subsequently, I’ve moved the Next Entry Long down $2,910.47, and the impulse leg was also adjusted downward to $5,345.54 to reflect those changes. Again, that is my bias.
Ethereum / US Dollar Pair Daily Chart
CRV/USD We barely put in a higher high at $6.454, and then retraced and put in a wave 4 at $5.903 and should breakout from there heading for the primary wave (3) around $8.060. You can read more about CRV/USD here. My outlook puts this in the teens into 2022 or soon after. Stay tuned for additional notes on staking.
AXS/USD We are at my Next Entry Long target so its a good spot to start scaling.
SAND/USD I expects some big news on this Metaverse player. I have no technical trigger today. Any retrace to the 8 day support adding or on any breakout of 8 day resistance I’ll be buying it.