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 unlock high APRs and access crypto borrowing with Gearbox Protocol.
For any crypto related questions please comment on the website.
Market Analysis
What’s up everyone.
If you were trading these markets this past week, then you might have noticed that they’re on hard mode. Chop is rampant. Bitcoin will make a slight move, alts follow, Bitcoin reverses, alts reverse. Rinse and repeat. Everyone is getting stopped out.
The macro perspective is to wait until you’re confident about which direction Bitcoin will go, and then jam a trade into an ALT that has an ideal setup. Because that ALT will follow Bitcoin. Hopefully you’ll find a setup or two from the analysis below that you can keep an eye on over this next week, in the event that Bitcoin makes a move.
Remember that good trading really comes down to patience and discipline. And these virtues pay off big time in our current market. We know that moves are coming, so the time to strike is near. But forcing a lot of trades now – while we’re still in purgatory – will mostly mean getting stopped out a lot.
So wait patiently, and keep your trade gun loaded for when the time comes.
Bitcoin
We’re still ranging inside this sideways channel, between $91K and $106K. So, the LONGER TERM SIGNAL from last week still applies (i.e. LONG if we get a daily close above resistance at $106K, and SHORT if we get the same below support at $91K).
In the shorter term, we might be gearing up for a significant move within the range, as Bitcoin is getting squeezed between the 21 and 50D EMAs above (i.e. both at $98K) and the 100D EMA below (i.e. at $93K). So for a SHORTER TERM SIGNAL, look for a LONG if Bitcoin breaks above $98K. A reasonable take profits here would be at $106K. Also, look for a LONG if Bitcoin tests, holds, and begins to bounce off the 100D EMA. The take profits here can be the 50D EMA for a small scalp, or use a trailing stop loss in case the bounce sends us higher.
In the shorter term, there’s no short trade flashing. We’re in the lower half of this sideways channel, and shorting a break below the 100D EMA at $93K doesn’t make any sense, because the major channel support is just below that at $91K. So at this point, the bears are sidelined until $91K breaks.
Ethereum
Ethereum continues to do its thang. And by thang, I mean be pathetic.
$2700 has become the new line in the sand (i.e. top white line on the chart). If Bitcoin goes up, I expect ETH to overtake $2,700 and begin to fight against all its EMAs that are acting as resistance. If Bitcoin drops more, then $2,700 will become resistance, and we’re going lower.
SIGNAL: If there’s continued weakness in Bitcoin, look for SHORT entries from $2700 to the bottom of the Fall 2024 sideways channel (i.e. the lower white line at $2,200). Long trades don’t make any sense right now. This chart is too weak, and there’s better opportunities elsewhere.
XRP
XRP is currently trading inside a giant pennant formation. You can see that the bottom of the pennant held nicely as support over this past week. Price is currently getting compressed between the 21 and 50D…
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.
