Hey there, Power Profit Traders!
Good morning!
Before we dive into today’s Power Profit Trades lesson on the mother of all cryptos, the big news is that my LIVE sessions time slot is changing next week.
I’ll be talking coins and alternative wealth with my buddy and fellow crypto expert Nick Black at 11:30 a.m. ET every Monday and Wednesday, and I’ll be flying solo for your Power Profits Trades hour at 11:30 a.m. ET each Tuesday! (Apologies for posting an incorrect schedule in yesterday’s newsletter.)
Even before that, though, you can catch me this Monday, Jan. 10, on the 8:30 a.m. ET Money Morning LIVE show with the gang, and then I may even make a cameo on our NEW show with Money Morning LIVE host Olivia Voz at 10 a.m. ET…
It’s gonna be fun, so follow the Money Morning LIVE calendar to make sure you never miss a trade idea or lesson. And if you DO miss one of my LIVE trading hours, bookmark this page for REPLAYS of my sessions.
That said, the markets have been unsettled this week. Stocks have been volatile, and today’s jobs report will likely shake things up again.
No matter what happens, though, I have my patterns, proprietary trading tools, and a diverse array of trading strategies at my disposal, so I can withstand the chop!
Part of that diversification is having exposure to the cyber coin market.
Similar to stocks, several cryptocurrencies have undergone a pullback over the past few weeks… However, one could be poised to bounce off a key level soon.
It’s a mega coin that really started the crypto boom years ago, and I alerted my Microcurrency Traders to a potential buy signal and levels to watch earlier this week.
The Mother of Cyber Coins
Bitcoin (BTC) is arguably the mother of all modern cyber coins, and likely the most famous. It set off the mining concept whereby theoretically, anyone with enough computing power could solve for algorithms that result in coins.
And it was the first mega coin to utilize a Blockchain ledger, also known as decentralized accounting.
Blockchain provides the entire history of all transactions of each Bitcoin. This means that from origination through each and every single exchange, each Bitcoin comes with a full history that is audited by third-party participants on an ongoing basis.
In addition, Bitcoin has a finite number of coins set for its full existence, making it relatively unique.
In its origin days, mining and trading Bitcoin was really a fringe market. But increasingly, BTC has become mainstream, with major institutional investors now embracing it.
Even major coin skeptics like billionaire Ray Dalio, the founder of Bridgewater Associates (one of the more significant hedge fund and private equity investment management firms in the world) is now an active believer and participant.
Mr. Dalio famously called Bitcoin and other coins a bubble waiting to pop and disappear, but recently changed his tune, stating he has made investments as a regular percentage of his own personal assets.
Further demonstrating the growth of BTC, we now have futures contracts in the U.S. and global markets pricing and trading Bitcoin contracts, as well as ETFs that synthetically hold Bitcoin via futures. And beyond U.S. securities regulations, we have other funds that directly hold Bitcoin, with plenty of active investors and traders.
There has even been some talk of Bitcoin replacing gold, especially amid recent concerns about inflation.
While I don’t buy into that theory – especially since gold is continuously mined, whereas Bitcoin is finite in number – it has certainly been proving itself a better asset with imputed value…
Here is a comparison chart of the Bloomberg Bitcoin Index vs. spot gold since January 2020:
Bloomberg Bitcoin Index & Gold Spot Comparison – Source: Bloomberg
Over the past two years alone – as the economy has gone through the Covid wringer and inflation has soared to multi-decade highs – Bitcoin has gained 474.62%, compared with gold at 14.27%.
More recently, BTC has pulled back from its November 2021 highs.
But for me, this drop to and consolidation around a key Fibonacci Retracement level could point to an opportune entry point for the mother of all cyber coins.
BTC and Fibonacci Retracement Levels – Source: Microcurrency Trader
I gave my Microcurrency Traders specific entry and profit targets earlier this week, as well as a potential level of resistance to beware of and the must-hold support levels for the cryptocurrency.
But the bottom line is: Bitcoin has come a long way, baby, and the microcurrency and NFT demand isn’t going anywhere.
While there may be pullbacks along the way, with the right guidance and technical analysis, I expect a lot more buy-in opportunities for a lot more coins in 2022.
That’s why it’s more important than ever to catch my hour-long show with my fellow crypto nerd Nick Black at 11:30 a.m. ET on Monday, Jan. 10!
We have much to discuss…
In the meantime, have a great weekend!
Have a great day!
Tom Gentile
Tom Gentile
America’s #1 Pattern Trader
