Cletus Got Bit By A Dog
Dogecoin makes a new local high as November begins
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Cheat Sheet -
Support and resistance levels and our daily, weekly and monthly bias on BTC, GOLD, OIL, ES, and NQ as well as our favorite altcoins
New here? Learn how to read the cheat sheet.
What We Are Watching
We further breakdown our case for these cryptos here : What We Are Watching
CleanSpark's buying spree continues with $5.9 million worth of bitcoin mining machines (The Block)
Stasis integrates euro-backed stablecoin with XRP Ledger (The Block)
Stepn founders' bright idea for its new NFT marketplace: compulsory royalties (The Block)
Indian Finance Minister Says Crypto Regulation Is a 'Working Priority' for Its G20 Presidency Next Month (CoinDesk)
Privacy Protection a Top Issue for Digital Yuan: China's Central Bank Governor (CoinDesk)
The UK has a new name for stablecoins and a new bill to regulate crypto (CoinTelegraph)
ATOM 2.0 On-chain Voting Goes Live (Blockworks)
Bitwise Forms Active Strategies Team, Citing Institutional Demand (Blockworks)
Coinbase Is Backing Ripple Against the SEC (Decrypt)
Open Metaverse Alliance Says It Won’t Let Meta Define the Future of the Internet (Decrypt)
El Salvador Development Bank Refuses to Reveal Bitcoin Records (Decrypt)
BTC DOGE Outlook
If you’ve been keeping up the last couple weeks with the BTC Outlook, we have focused on the 20-week moving average and the continued squeezing of the price volatility. Well if you have been in our discord about a week ago. One of our subscribers reminded us of the fact that when Bitcoin hovers around it’s 20 week moving average that historically this has been a signal for altcoins to rally. Throw in the fire works of Elon Musk officially buying Twitter and his obsession with Dogecoin and you have the perfect setup for irrational exuberance. Since, everyone is buying and trading it so let’s talk about how to trade it.
First, you should understand what you are buying. Dogecoin is a Litecoin clone created by some researchers with the intention of making a cheap coin for fun and newcomers to experiment with. It has a fixed inflation policy of 5 billion coins a year, which is currently about 3.5% per year. Dogecoin is a proof of work network and actually, funnily enough, the third strongest cryptonetwork in the world at resisting a 51% attack.
And Yes… The token’s symbol and named are based on the Japanese dog, Shibu Inu.
Okay - so we now know what we own.
The next critical thing is, is the price going up? Well that’s easy. Yes. And what’s critical is there is momentum. The thing we’ve been waiting so long for Bitcoin to do, Dogecoin is doing. It’s continually trading above it’s 20 week moving average. Notice how the entire progression is parabolic moves away from the 20 week MA and then rapid retracements to it.
So, if you want to become a Dogecoin HODLr, you do you. But, the trade setup is pretty simple here:
Stay long above the 20 week MA and sell below it!! With this setup it’s that easy. Just go look at the chart above. This would have results in 3 fantastic trades and a few fake outs.
Of course this is only our opinion and you are the one who has to manage your own positions. We will continue to monitor this irrationally exuberant Dog coin in our discord. Please join us and let us know what cryptos you are buying and trading.
Oh, and Cletus is recovering from rabies because he got bit by a dog or something. We’ll be back with the private podcast once he’s recovered fully.
Possible Course of Action
Long while price stays above 20 week MA
Short can be dangerous here as the market is behaving with irrational exuberance
Sell below 20 week MA (you could also try shorting with stop loss if price moves back above 20 week MA)
The Bulls’ Defense:
Bitcoin hovering at 20 week moving average
Elon Musk, Twitter acquisition (could integrate dogecoin)
Strong momentum (price consistently rising above 20 week MA)
The Bears’ Prosecution:
Its a coin based on a picture of a dog intended for fun and learning
Market is irrationally exuberant (will end in a large draw down eventually)
A Closer Look
We’ll be back on Thursday with Hal’s closer look.
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