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 rewards from VIRTUAL/cbBTC on Aerodrome and Pendle.
For any crypto related questions please comment on the website.
Market Analysis
First thoughts, markets are selling off due to macro fears once again.
TLDR of the situation. The markets fear inflation is going to surge again meaning that rate cuts will stop or go up again.
12 days until Trump gets in and tries to change course with a flurry of executive orders.
Bitcoin
Bitcoin dropped from around 103k to 95k on the news.
The 50 day EMA is still holding as key support.
MACD trending back towards a bearish cross following our bull cross last week. A decent bounce would invalidate the bear cross happening.
Bull or bear cross aside, we want to see the 50 day EMA hold. That is around $94,000.
Silver lining for you, so far this is just a higher low, the first actually, in the start of a new uptrend.
You can see from the 108k top in December we had a short term downtrend with two peaks and two valleys. This reversed at the end of the year when we bounced for the fourth time off of the 50 day EMA.
The recent move up to 103k has set in motion what could be a new uptrend. This move being the first peak.
The new higher low around the 50 day EMA would be fine.
SIGNAL: Long a touch of the 50 day EMA or from around the current price at the time of writing just under 96k is not bad either although not ideal. Be ready to cut fast on a loss of the 50 day EMA. If you want to “play it safe” you can always wait around for 100K to be taken out again before going long.
Ethereum
Let’s talk about our old buddy Ethereum. The little demons in my head keep saying… “sell it Lark, buy Fartcoin”, and the angels keep saying “just hold on, it will hit 10k eventually”.
Ethereum has lost the 50 day EMA again. As usual showing weaker price performance than Bitcoin. Days to grind up then one quick elevator down.
MACD daily on the verge of a bear cross again, and the RSI yellow line lost.
Showing a reset on momentum.
A quick V shaped recovery would put us right back on track. But until that happens…
Silver lining again is higher highs and higher lows forming so technically an uptrend starting, but showing early weakness.
SIGNAL: Long a breakout of the 50 day EMA, currently around $3,450.
Solana
Lots to say on the SOL chart here.
Top orange line is the downtrend that started from the local top in late November. We traded back over this for just 5 days, indicating a fakeout, not a breakout.
Blue line is the 50 day EMA. We have once again lost this indicating at least short term a switch to bearish momentum.
MACD has not yet hit a bearish crossover on the daily. And we still have a few days left to avoid it.
The bottom orange line is the uptrend line in play since December 20th.
The price of Solana now sits at the nexus of the downtrend line, the uptrend line, and the 50 day EMA.
The only question becomes what direction will it go?
Assuming that we don’t see broad market weakness then up is the most likely scenario.
BUT, if BTC fails to hold the 50 day EMA…
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.
