Howdy traders, it’s Matt here.
We’ve had a lot of great volatility from the crypto market recently.
You may have heard the saying, “three out of four stocks follow the market.”
I’m not sure if it translates perfectly to crypto, but we definitely experience bigger and more frequent spikes when major coins are bullish.
And that’s been the case for all of 2023.
Look at this chart of Bitcoin (BTC) so far …
BTC chart 4-hour candles Source: BitcoinWisdom.io
The key to finding reliable plays in this market is by following key catalysts.
Let’s run through a perfect example from last week …
Elon Musk Influence
If you’re new to this niche or unaware, Twitter and Tesla Inc. (NASDAQ: TSLA) CEO, Elon Musk has a notable influence on crypto prices.
Especially for meme tokens like DogeCoin (DOGE).
Last week on Tuesday, Musk posted a series of photos on Twitter of his dog as the new CEO.
He’s great with numbers! pic.twitter.com/auv5M1stUS
— Elon Musk (@elonmusk) February 15, 2023
DOGE spiked a bit as a result.
But the real move came from a sympathy token with a smaller market cap.
PolyDoge (POLYDOGE) had moved a bit back in early February. But the most recent spike came right after February 14, 2023. After Musk posted those photos.
Here’s a chart …
POLYDOGE chart 1-hour candles Source: BitcoinWisdom.io
There is real opportunity in this niche.
Even as regulators crack down.
In some aspects, regulation could be fueling this spike higher.
Now that there are rules to follow to become a legitimate crypto firm, natural selection will start to weed out the rotten apples.
The move on POLYDOGE is awesome, but I’ve got my eyes on a different token.
One that hasn’t started running.
I haven’t bought any tokens yet, I’m still waiting for the perfect entry.
I can’t share my whole thesis in this letter. I wrote up a whole copy right here.
Get ahead of these moves by focusing on the hottest catalysts.
See you in the next letter.