🧘‍♂️Connect the Dots

Dear Premium Meditators

We are delighted to be launching an exclusive discord for our premium community only. Topics for discussion will span:

• Trading ideas with charts and insights.

• Announcements for early access to podcasts and analysis.

• Career discussion and networking.

Here is a private link to join. Looking forward to speaking with you.

And now, on to the latest crypto events…

MARKET BRIEFING

• Crypto. Sounding like a broken record here but bitcoin remains range bound with buyers defending support around $55,000 and strong resistance around $60,000 which has been tested many times since March.

• Legacy. Stock futures wavered after a measure of inflation exceeded forecasts, indicating potential price pressures as the economy reopens. 

Delighted to say this article is brought to you by FTX. Right now I’m earning up to 100%/year lending on FTX… One of my favourite ways to make money in this market, make sure to use our link to get a discount. 

MARKET MEDITATION

Let’s start with a look at bitcoin.

BITCOIN / DOLLAR

One Day

$60,000 remains our key resistance, a clear break and we should see a breakout. 

$50,000 Invalidates our bullish bias.

Altcoins have plenty of room to run with bitcoin going sideways.

ETHEREUM / DOLLAR

One Day

We’ve retested previous key resistance at $1935 as support and successfully held, this is confluent with a 0.382 retracement demonstrating strength.

While the 0.382 level holds, we expect to see an extension to the $2300-$2500 level in April.

DEFI NEWS & ANALYSIS 

Coinbase Joins DeFi Alliance

Coinbase CEO Brian Armstrong said in the firm’s earning call this week that providing access to DeFi apps would be a priority for Coinbase going forward. This has taken shape in the form of a partnership with the DeFi Alliance: a group that provides mentorship and funding for early stage tech teams. It is not difficult to comprehend the appeal of DeFi from the perspective of Coinbase. 

1️⃣Narrative 

In terms of narrative, DeFi is one of the most powerful in the space: the potential to create a more open, free and fair financial market for anyone with Internet access. It would mark an important milestone in the history of financial wealth accumulation. Something that was once only accessible to monarchs, then to corporates and now, finally a public good. 

2️⃣DeFi Protocols

According to data collected by the Block, DeFi protocols generated more than $200 million in revenue last month. Due to the reflexive nature of those DeFi protocols, some token valuations have now become even more attractive as higher token prices lead to more volume, which in turn leads to more fees that accrue back to the token holders.

MARKET NEWS AND ANALYSIS

Bitcoin Displacing Gold As An Inflation Hedge 

A recent Bloomberg article sets out to explain the use case of bitcoin and further, why it does not convey the typical features of a speculative bubble. It has already formed a series of bubbles, which have burst and then re-inflated. Further, Bitcoin’s strength in the last few months has come despite a distinct drop-off in Google searches for the term, which might be taken as a proxy for retail interest, or the kind of excitement that typically accompanies a bubble.

Another interesting statement in the article, considers the extent to which bitcoin has displaced gold as an hedge to fiat or traditional currency. Indeed, there is circumstantial evidence to suggest that money has flowed from gold into bitcoin.

Not all of the money leaving gold has gone into bitcoin, but quite a big chunk has. Adding to the argument that institutions are allocating money from gold to bitcoin. With Bitcoin being perceived as a superior ‘anti-fiat’ asset. (Another important destination appears to be Chinese bonds).

PERSONAL FINANCE

Improve your Investment Decisions with Occam’s Razor

Trading and investing is complex, especially when looking at crypto markets. How do we deal with this complexity and ensure we remain profitable? One way is to consider Occam’s Razor. This states that the solution requiring the smallest number of assumptions is often correct.

If there are less assumptions we are more able to verify if these hold true. Additionally, a simpler solution is easier to execute. Now, let’s consider some actionable insights into trading and investing.

1. Don’t use too many indicators when analysing charts
   From Elliott wave theory to moving averages to RSI there are a huge number of indicators we can use to carry out technical analysis. Instead of trying to use them all at once, focus on ones that suit your strategy.

2. Don’t get distracted by noise
   There has never been such an abundance of information available to investors, a lot of which can be low quality. Focus on high quality information that affects your strategy and that is actionable.

3. Seek simplicity in execution
   When putting together a saving plan or an investment strategy make sure to keep the number of steps to action this strategy as low as possible. Execution can be half the battle and reducing the number of steps allows us to be more consistent in the long run.

4. Consider relative importance
   Just because a hypothesis is correct, it does not mean it will have a major effect on your strategy. Focus not just on what is correct but what actually has a significant impact on your final outcome.

PODCAST

Masterclass: Becoming a Successful Entrepreneur with Dan Held

CLICK HERE TO FOR EARLY ACCESS ?

Dan Held is the Head of Growth at Kraken and founder of newsletter The Held Report. He has previously managed growth at Uber and sold businesses to Blockchain.com and Kraken.

Key Takeaways:

1. Don’t risk it all
   Startups are extremely risky and have a high chance of failure. Putting all of your net worth into a startup, exposes you to the risk of ruin.
   

2. Add variability to your future
   Many traditional jobs are linear in that they offer a fixed path of progression. Introducing variability can lead to significant opportunity.
   

3. Embrace failure
   With every failure comes the opportunity to learn from your mistakes. Doing this consistently improves our decision making process.
   

4. Become obsessed
   The more obsessed you become with solving a problem, the more dedicated you will be. This is easier to do when you are solving a problem that you also face.
   

5. Survival is the key
   Be the cockroach. Minimise your expenditure, stay focused on your ultimate goal, continually improve and you will be on the path to success.
   

6. Grow your network
   Your network can provide a huge amount of opportunity. Go to meet-ups, engage in online communities and constantly push out the boundaries of who you know.
   

7. Always consider a potential’s customer journey
   A customer first must become aware of your product, then sign up for your product and then become active users. Each stage is distinct and must be worked on separately. Increase your brand awareness, clearly demonstrate value to the user and continuously increase the value they receive.

MORE MEDITATIONS

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• Beginner’s Guide to Owning Cryptocurrency

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Disclaimer: The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision.