Gm friends,
Welcome back to another Premium Investor Report.
Let’s jump in!
Here’s what’s in today’s issue:
- Technical analysis on the current market.
- A DeFi tutorial on how to earn yield from RWA-backed Stablecoins on Usual.
For any crypto related questions please comment on the website.
Market Analysis
Bitcoin
Let’s zoom in on the daily first. Price rallied to a new high this week of 108k.
This move triggered a MACD bull cross, but it has so far been short lived. Now facing a bearish cross indicating the cross was little more than a fakeout short term.
100k is not far below and will not be looked at as a key area of price support. Below that we have 92k.
If Raoul Pal is correct on the above chart, then Bitcoin could correct further in January leading into the Trump inauguration.
This is countered by Saylor buying a few billion per week and ETFs buying a few billion per week which is what has driven us up to 108k this week.
Any short term volatility is normal after the epic run we have just put in.
SIGNAL: Watch for longs at 100k if support holds or 92k. Would like to see longs accompanied by a MACD bull cross. While a breakout of 108k to grind to new highs is a potentially tempting long scenario, the target might not be super high short term, and it is likely better to be patient for better entries or look for other higher risk reward opportunities.
Ethereum
ETH $4,100 remains the key line of price resistance for ETH right now.
MACD is still trending down with the recent price rally failing to ignite the bulls enough to cancel it.
The top orange line on the chart is the multi year downtrend line. Our second attempt to take it out is now holding on by a thread.
A bearish divergence is continuing with the RSI printing lower peaks on the daily charts while the price has put in higher peaks but without enough significance to break the RSI downtrend.
The recent failure to take out the $4,100 price level even made a nice little double top. A bearish chart pattern. Which would need to come down to and lose $3,500 to confirm by the way. So just a potential pattern for now.
SIGNAL: ETH has had a rough year. Lots of hopes to see ETH catch up and out perform BTC for a while, which will happen, but apparently not quite yet. Put in a daily candle close above $4,100 and that would be a signal to long. To the downside, $3,500 remains key support and a likely zone to long if it gets hit. But watch for it to actually hold.
Solana
I am actually digging this Solana chart right now.
It has been in a steady downtrend since making a new high a few weeks ago.
MACD is now below the zero line.
The top orange line in the chart shows that we just keep putting in lower price peaks as the downtrend continues.
Making me think that SOL is getting closer and closer to a potential long scenario.
SIGNAL: Long a breakout of $230 or a retest of $200. Would like to see the $230 breakout come with a MACD bull cross. No trade on this right now… but maybe soon. Obviously if $200 fails to hold on the downside then it would need cut.
Chanlink
Chainlink caught some nice bid on the back of the Trump trade last week with World Liberty seen to be buying a few million bucks worth on chain.
That rally though only managed to cement the…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
