The big new whale everyone's talking about in crypto is PayPal.
They announced support for Bitcoin, Litecoin, Ethereum, and Bitcoin Cash.
They're back in the headlines again today with the talks of a huge acquisition.
Now, the debate has truly begun,
one people actually care about.
How will this news affect those projects?
Will PayPal become another centralized arbiter that doesn't allow withdrawals like Robinhood?
Or will they champion the ideas of self-governance?
That originally birthed Bitcoin out of the cryptocurrency vagina.
More like Square and its vocal pro Bitcoin CEO, Jack Dorsey.
I told them I wouldn't say that, but I did anyways.
Today, we're gonna analyze PayPal’s move into crypto
and what that means for your portfolio.
Let's get it.
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Now, in this video,
we're gonna be discussing further developments regarding PayPal
and their triumphant arrival into crypto.
But not everyone is happy about the PayPal situation.
The people we hold closest and most dear to this channel,
the Bitcoin maximalists,
are fuming mad.
Poor Maxis got their panties in a wad.
And by panties, I'm referring to the used pair they bought on eBay.
After we break down the PayPal story, we will then jump into looking at Ethereum.
We'll be having Crypto Wendy O on the show, as always on Fridays, to check out to see what the prospects for Ethereum are from a technical perspective.
But first, the latest word on PayPal’s entrance into the world of cryptocurrency involves a possible,
and I would say probable,
acquisition of one of the largest Bitcoin custody providers.
Period.
I think this is where we have to pause
and think about what is good for cryptocurrency.
It's kind of like Robert Frost’s poem,
“The Road Not Taken”
It starts out with the line,
two roads diverged in an orange coin,
or something like that.
I mean, do I look like a poetical genius to you?
Well, maybe.
But the poem is simply about choices.
There are many paths for Bitcoin from here.
And even before our current situation,
there have been many other so-called inflection points for Bitcoin.
I look back and think about things like Silk Road,
the Mt. Gox hack,
BitConnect,
Cash App,
Robinhood,
and many others.
These were times when Bitcoin had a choice of their direction to go.
Of course, Bitcoin is an inanimate digital currency.
It's the supporters of Bitcoin who have often decided which direction Bitcoin will travel.
But the inflection point we've recently arrived at is almost certainly what I would call a point of no return.
Once PayPal brings 346 million people, specifically Americans, into the world of cryptocurrency,
there's no going back.
Even if only a small percentage of PayPal customers invest into crypto at first,
the point is PayPal is going to normalize cryptocurrency,
normalize Bitcoin.
The Bitcoin maximalists have been very angered, churning out statements like “not your keys, not your crypto”.
And I get it.
PayPal adding Bitcoin should be seen as Blockbuster showing Netflix shows in its store,
the beginning of the end, if you will.
But it's time to realize that the libertarian, anti-tax, anti-government narrative of Bitcoin is dying.
The vast majority of Bitcoin investors, I suspect, care absolutely nothing about the humble beginnings and idealistic vision for Bitcoin.
Do you know what they do care about?
Being able to retire before they die.
Being able to take a vacation once every year or two.
Being able to protect their families during an economic crash.
Now, there's certainly an argument to be made
regarding how our current fiat and economic system and broken government are ultimately the source of any upcoming economic crisis.
I get it.
But people care about the here and now.
The people who spend their time thinking about breaking current systems are in it for the long haul.
Meanwhile,
thanks to the pandemic that's reminiscent to the song that never ends,
people are much more concerned about their immediate futures.
We don't know where this is heading to.
And it looks bleak.
The prospects of a falling dollar do not bode well for most Americans.
I say all this to make this statement:
PayPal is here and they aren't leaving.
They’re bringing more people into cryptocurrency,
and this will make the price of Bitcoin go into a frenzy.
It's not great for the ideals of cryptocurrency,
but if this is primarily what you're concerned about,
then you're in the small minority of crypto holders.
It doesn't mean you're wrong,
just outnumbered.
There are too many of them.
What are we going to do?
The complaint for maximalists this week is that PayPal coming into crypto is not good.
How would they possibly do crypto and Bitcoin custody?
Will you really own your cryptocurrency on PayPal?
Well, it seems like we finally have that answer.
My only Bitcoin maximalist friend, Brekkie, aka @BVBTC on Twitter, scripted a probable conversation behind the scenes at PayPal,
where two executives are discussing the complaints from true bitcoiners and anti-establishment types.
You know the ones, the ones that scribbled the anarchist logo on desks in the ISS room.
But ultimately, the executives decide to appease the angry Maxis and libertarians by buying BitGo.
If you're unfamiliar with BitGo,
it is one of the largest digital asset custody solutions in the world.
This will be the PayPal solution for custody.
And BitGo is one of the most trusted Bitcoin-related companies.
Many crypto projects trust BitGo for their custody solutions, including Celsius.
Now, the acquisition is not 100% complete,
but this is kind of like when Binance announced acquisitions of Swipe and CoinMarketCap.
When the news gets out,
it's pretty much done.
BitGo isn't a company that a lot of people hate,
unless they're totally against custody solutions in the first place,
which, of course, some people are, and that's their opinion.
But a BitGo acquisition does go to further the hopium dreams from those of us fully invested and maybe overextended into cryptocurrency.
Now, speaking of fully invested,
my biggest holding by a longshot right now is Ethereum.
And I'm super pumped to see where it is going to head by the end of the year and beyond.
Some people are predicting a trillion dollar market cap for Ethereum alone.
Yes, absolutely insane, but I love it.
In the short term, many people are starting to believe $500 is in the cards,
and it will be happening extremely soon.
And I personally tend to agree with that notion.
But let's stop taking my word for it.
This isn’t Reading Rainbow.
I already told you I'm pretty much overextended into Ethereum,
so let's get somebody else's opinion.
Time for our weekly check in with Wendy O.
Wendy, good to see you as always,
but I'm dying to know, with my last breath,
what is happening with Ethereum?
And where do the charts say it's heading to?
Thanks for having me back, BitBoy, and shout-out to the BitSquad.
Today, we're gonna do something a little bit different.
We're gonna take a look at Ethereum long term.
We're gonna take a look at the macro charts.
Me, personally, I like to look at the micro charts because we have a little bit of a better hold of what is going to happen in the near future as opposed to long term.
As most of you guys know, it is very very volatile and unstable globally, regarding economics with this election, all that type of stuff.
However, Bitcoin is extremely bullish, so I wanted to go ahead and take a look at Ethereum and see long term what could happen.
Right now, just taking a look at the MACD,
we had a bear cross that was initially completed on September 28 of 2020,
and now, we're starting to flip bull.
This was a pretty short-lived bear cross that occurred on the weekly chart,
which is exciting.
Some important things to notice here that we do need to talk about before talking about breaking all-time high is this area, which is now support,
but it was acting as heavy resistance in the past, at about $344.
Taking a look back around June 2017, we had a pump.
We hit this area of $344.
We even hit a high of about $415.
We failed. We had a second attempt, August 28, 2017.
We almost flipped it.
We had a similar experience. We hit about $400.
And we failed and we dumped.
However, one important thing I want to notice is this little U-like shape.
The reason why I wrote that U-line shape there is because we've got this nice consolidation range
that occurred when we had that dump from September to about November 13, 2017, when we actually pumped and we skyrocketed.
This pump was about a 400% gain with Ethereum.
Absolutely amazing. Putting us at about $400 to about $1400.
This area of resistance is important at $344 because we actually had a little test that we popped up and we almost flipped it into support in June of 2019,
and we actually failed, so this area's extremely important.
The difference between this U shape that occurred in 2017 and this U shape here, well, this little line, but essentially it's a consolidation period,
is that we've actually been able to flip $344 into support,
which is amazing.
We've been consolidating really nicely above it,
and we're looking primed for a pump.
Obviously, we would need to break this trendline here of about $500 or, I'm sorry, resistance line, which is that $500.
This area is important here because we tested it in July of 2018,
when we had that massive dump from that all-time high,
and we actually tested it, tried to flip it.
It didn't work out, and we ended up dumping even further.
This line is also important at around $500 because before we had that massive pump up to $1400, we hit it and we rejected.
This area is extremely important,
but once we get that cleared, we can then test about $550.
As far as us breaking all-time high,
the area that's resonating with me that I like to see,
and, you guys, price discovery is a very hard thing to predict.
A lot of people will say they haven't mastered,
but they use fibs because it's an easy guide to use.
An area that resonates with me after breaking all-time high of about $1450 would be hitting $1858,
which is denoted by the 1.272 fib area,
but I like the middle--the median range in this, about $1600.
That seems like a plausible target first.
So overall, Ethereum is looking extremely bullish.
Are we gonna break all-time high by the end of the year?
I don't think so.
There's a lot of work that needs to be done.
However, once we are ready to break all-time high, I am targeting $1851 to about $1600, and then from there, that's just all bonus.
Thanks, Wendy!
Guys, don't forget to subscribe to Crypto Wendy O on YouTube
for daily TA and news videos.
Let me know if Wendy's analysis changed your mind
on where you believe Ethereum is heading to.
That's all I got.
Be blessed.
BitBoy out.