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 stablecoin rewards in a simple way with Avalon Labs.
For any crypto related questions please comment on the website.
Market Analysis
Well… that was a crazy week! Keep in mind that CPI data later today can quickly change market sentiment. So be prepared.
Bitcoin
Bitcoin has been one of the strongest coins during the market sell off. The move down to 89k was only about 17% under the previous high at 108k. A baby correction for Bitcoin.
The two orange lines on the chart represent the trading range for Bitcoin with 102k at the top and 92k at the bottom. The vast majority of the price action in the last 2 months has been here.
Sellers keep appearing aggressively over 100k and buyers keep buying aggressively near the lower 90k range.
The move down to 89k and the subsequent recovery was impressive. Wicks under the range bottom are fine. What we don’t want is to start putting in daily candle closes down there. That would indicate a deeper correction and trend change.
This chart here shows that on the sell off, Bitcoin came back down and almost hit the 100 day EMA (yellow line), but most importantly ended the day back at the 50 day EMA (blue line). At the time of writing we were even trading back above the 20 day EMA (purple line).
MACD daily has once again flipped bullish. Possibly the start of a new uptrend after the fake out last week.
Orange line on the chart represents the downtrend.
SIGNAL: Long a break of 100k, this would break the down trend (orange line), the 100k psychological number, and provide deeper confirmation to the MACD bull cross. Targets would be new highs into March.
Ethereum
Ethereum as usual is a disappointment.
Strong downtrend remains in play for now. Lower peaks and valleys. Currently trading under the 100 day EMA and MACD still showing bearish momentum.
SIGNAL: I am not excited about ETH until it can show some strength and regain the 50 day EMA (blue line) currently at $3,350. That might even be enough to drag that the MACD up into a bullish cross. And yes, I want to see the 50 day, not the 100 day EMA get crossed. I want ETH to show some damn strength!
Solana
Solana has taken an absolute beating here.
Still in a down trend, like most coins. It is right now trading under the 100 day EMA (yellow line), which is not great.
SIGNAL: Long a breakout of the 100 day EMA at $195. I feel like SOL has been more reflexive and a break of the 100 day has a decent risk reward versus waiting for the 50 day (blue line). If you want a more cautious approach then one could wait for the orange down trend line to be broken around $210.
XRP
XRP has shown incredible strength as an asset.
Let’s keep it simple for the first chart so you can see the strength. The blue line is the 50 day EMA, it has traded solidly above it since November. Didn’t even touch it since then. Compare that to ETH and SOL…
MACD bull cross hit 5 days ago. Price is pumping now.
Also XRP bucked the trend of previous price performance, usually when there is a big run up on the weekly RSI then we will see XRP dump hard, it didn’t.
At the time…
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.
