Hey there, Power Profit Traders!
Good morning!
Make sure you hop in the room at 11:30 a.m. ET today for our Power Profit Trades LIVE session, where I’ll be teaching and trading in real time.
And thank you to all who attended yesterday’s first-ever Alternative Wealth Daily LIVE show! I couldn’t believe the attendance – I think we had nearly 1,900 people in the room at one point.
If you missed it, though, have no fear – not only can you watch replays of my LIVE sessions here… I’m going to break down some key crypto points for you in today’s Power Profit Trades newsletter!
In fact, we’ll review:
- 2 Bitcoin-adjacent names that could be buying opportunities
- My top 3 microcurrencies at the moment
- What Matt Damon commercials tell me about the industry
- The 3 things I look at before buying microcurrencies
- The Microcurrency Trader tool I use to hunt “buy” signals
- What could disqualify a coin’s “buy” signal, in my book
And a whole lot more!
There’s a lot to unpack, so let’s get started.
2 Bitcoin-Adjacent Names on My Radar
We began yesterday’s Alternative Wealth Daily session by going over some key headlines, including those around PayPal (PYPL) exploring its own dollar-backed coin.
We discussed how PayPal has been slow to the race when it comes to adopting crypto, and while the headlines are exciting, it could take months – if not longer – for something more solid to come to fruition here.
From a technical standpoint, though – because I’m a technical trader, as opposed to fundamentals-focused – PYPL is one of two Bitcoin-adjacent names I’m interested in right now.
You’ll notice that PYPL stock suffered quite a spectacular drawdown from early September to its recent lows, surrendering about 40%, give or take.
More recently, though, the shares have been moving sideways, in a range around $180 to $200.
As such, PYPL has been stronger than Bitcoin (BTC) itself over the last 40+ days.
This divergence – in my opinion and based on my analysis signaling BTC is nearing a low – is a bullish sign for PayPal stock.
In that same vein, Enjin (ENJ) – a coin we’ve discussed quite a bit in my Microcurrency Trader universe – has also outperformed BTC recently.
With ENJ now holding support, it looks like a very strong coin at the moment.
Otherwise, three of the microcurrency names I’m watching closely are Algorand (ALGO), Polygon (MATIC), and yearn.finance (YFI).
While many names in the crypto universe have taken it on the chin recently, this trio has managed to stay above water, so to speak.
In fact, my talented broadcaster Eric, who has emerged as an alternative asset lover himself, posed a very valid question during yesterday’s broadcast: While those microcurrencies are faring well, should people be worried about the broader crypto pullback?
My answer to that is: Managing losses – and knowing when to exit vs. sit tight – is what separates a pro from a rookie trader.
That’s why the goal of the new Alternative Wealth Daily shows is to EDUCATE my Power Profit Traders and help to bridge that gap.
As far as BTC itself – well, I continue to monitor key Fibonacci levels very closely (though note that I don’t plot around the wicks of candles) with my Microcurrency Trader team.
Ideally, I would love to see BTC move above $51,000 and hold it for three days… But even if we do pull back more, that wouldn’t be anything new for Bitcoin.
In fact, we’ve only been through two real investing cycles around BTC and other coin-related assets since inception; the first two waves preceded roughly 85% pullbacks.
However, I’m encouraged that the third wave of coin investing could be even BIGGER – which would help to mitigate the next cyclical breather and stem the tide, so to speak.
That’s because this go-round features INSTITUTIONAL adoption – something we haven’t seen until now, and a topic I discuss with my Microcurrency Trader team. I mean, if I have to watch that Matt Damon crypto commercial one more time…
In other words, we have a lot of big-money players in the mix now, and they surely don’t want to watch BTC drop to $15,000.
All of that is encouraging for Bitcoin – and I’m also monitoring a recent “buy” signal that hit my alerts this week.
The “buy” signal was what I call a “Triple Stack Compression,” which is based on my DarkNet strategy.
In the simplest terms, the Triple Stack resembles something called the Elliott Wave, and consists of long-, intermediate-, and short-term support levels stacking up and presenting a buying opportunity.
My Microcurrency Trader members can use this tool in my TG Suite app to search for signals inside the coin universe… However, just because a name pops up doesn’t necessarily make it an automatic buy – I vet the names before I make a move.
In fact, during yesterday’s LIVE show, I took a look at Po.et (POE), which popped up on the Darknet scan.
Although a signal flashed, I DQ’d POE from my list of possible coin buys, because I’m not a big fan of names priced five decimal points out – two is my limit.
Not to mention POE doesn’t even trade on Coinbase – another DQ.
In closing, I don’t take every signal that comes from my software, which scans about 1,200 currently. I’m looking for only the best and brightest, and I do my due diligence.
In fact, before I buy into ANY microcurrency, I do three things:
- Take the temperature of the overall coin market via Bitcoin or Ethereum (ETH)
- Look for Triple Stack Compressions
- And examine currency waves – something I plan to dive into during an upcoming Alternative Wealth Daily session.
So, we’ll dive into currency waves next, as well as the best way to reflect – and improve – on your trading in the month of January, and a whole lot more.
In the meantime, get in the room at 11:30 a.m. ET TODAY for my LIVE Power Profit Trades hour!
See you there,
Tom Gentile
America’s #1 Pattern Trader
