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HEALTH, WEALTH, AND HAPPINESS |
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| "Human greatness does not lie in wealth or power, but in character and goodness. People are just people, and all people have faults and shortcomings, but all of us are born with a basic goodness." - Anne Frank |
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| Everyone Has Crypto FOMO (New York Times): Finally, the banks and financial advisors are getting it. They're hearing from so many customers with FOMO, or Fear Of Missing Out, that they can't ignore crypto any longer.
Investor takeaway: While you'll hear plenty of crypto skepticism in the media, articles like this one -- which walks you through all the ways to add crypto to your portfolio -- show that the tide is turning.
Regular readers of Bitcoin Market Journal, of course, know all about how to add crypto to your portfolio, but it's good to see The New York Times catching up. |
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The New York Times gave some numbers on top crypto assets in the article above, but it would have been more helpful to see it as a pie chart, so we fixed it for them: |
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| Investor takeaway: If you're just getting started, the top digital assets are bitcoin, Ethereum, and BNB (all in our Future Winners Portfolio).
Since Tether and USDC are stablecoins, pegged to the US dollar, they are not really "investible" unless you deposit them in interest-bearing accounts (see our page on Best Interest Rates).
... and that's how you add crypto to your portfolio. |
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| Hi Everyone,
As the saying goes, in technical analysis, it doesn't matter how fast the price moves within a range. What's important is the force with which it breaks out. But is that really how it works?
In Monday's newsletter, titled Reflection Time, we identified a consolidating range in bitcoin's price action, which is even more relevant now as we test the top of that range.
Today, Bloomberg put out an article focusing on this pattern, with contributions from yours truly. Vildana Hajric and Katherine Greifeld authored this piece, so thanks for reading, ladies!
In this chart, we zoom in on the wedge (dotted orange lines) to see how the cryptocurrency's price was moving quite erratically from top to bottom in a short time span. However, on this last leg from bottom to top, the movement was much more gradual and consistent, and it has even formed its own upward channel (blue lines). |
| Now, we are faced with a double resistance point, both from the rising channel and the greater wedge, which will be quite difficult to break out of without first pulling back toward the bottom blue line in order to gather the strength needed for a breakout.
In this case, it's easy see that the speed of the movement within the range may become quite significant indeed. Whereas the faster, more erratic movements tired out and tapered off at the edges, a more slow and consistent movement has a much better chance of causing a breakout. |
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New volume ATH
One metric that I like to watch when measuring crypto market volumes comes from social analytics platform LunarCrush, which tracks social media data in order to gauge the respective sizes of the different cryptocurrency networks.
Here we can see that the total social media activity of the entire crypto market reached a fresh, all-time high of 2.22 million posts on Tuesday. |
| Normally, you might think that this is a fluke occurrence, a spike caused by something or other. However, similar to the bitcoin price chart above, if we zoom in, we can see this growth has been building up organically over the last three weeks.
It's a bit odd given that there haven't been any major technical breakouts, trading volumes on crypto exchanges have been quite tame lately and transaction volumes on the bitcoin network are essentially stable.
According to a tweet posted by the LC Twitter account, posts involving the hashtags #bitcoin and #ethereum are the biggest contributors to this robust social media activity.
It's good to see the industry consolidating around the top projects. |
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Lump sum investing vs. averaging
As a parting thought, we would like to bring an interesting research piece to your attention.
This article, authored by analyst Gerald Votta, explores the differences between lump-sum investing and dollar cost averaging.
It could make for an interesting read if you want to evaluate these two wealth-building approaches, along with their respective costs and benefits.
Hope everyone has a restful weekend. I certainly will.
Stay blessed, |
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| Mati Greenspan Analysis, Advisory, Money Management |
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Talk about a compelling case of institutional adoption! It's great to see this energy behemoth getting involved with bitcoin mining. |
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If only we had more arms. |
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| Bitcoin Market Journal is a daily newsletter that makes you a better crypto investor. It is created by Evamarie Augustine, Charles Bovaird, Mati Greenspan, John Hargrave, and Alexandre Lores.
Paid subscribers get full access to our top crypto picks; both free and paid subscribers get content to build you into a better investor.
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