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 get started with DeFi on Avalanche.
For any crypto related questions please comment on the website.
Market Analysis
It’s crazy how much can happen in seven days.
Last week, we were adjusting to the new “Made in America” narrative, due to Trump’s X post about XRP, SOL, and ADA. This week, we’ve got our US Strategic Bitcoin Reserve, but any preference from the US Government towards anything but Bitcoin is all but gone. This takes away some of the momentum behind the Made in America coins, but it might bring some attention back to Litecoin. We’ll just have to wait and see about the latter.
But the big question is where’s the bottom for Bitcoin? And the bigger question behind that is what’s going to happen with the macro picture? I don’t know about the latter, but I’ve got some ideas as to the former.
As far as trading goes, here’s what I’m continuing to learn:
- Opportunity is everywhere. For me, the key is to take off the permabull glasses, and be honest with myself about what the charts are saying. There’s nothing wrong with shorting contracts while holding long term spot bags.
- Limit orders. Prices react to support and resistance levels, and moving averages (because they are psychologically and behaviorally significant to market participants). Thus, my trades tend to go much, much better when I can get limit orders filled at these levels (as opposed to impatiently smashing a market order). And if I can’t get the fill, no problem. The markets will be here tomorrow.
- Set stop losses. I’ve been a ton better about this lately, and it’s kept me out of trouble.
Alright, let’s look at the charts.
Bitcoin (BTC)
The sell the news event surrounding Trump’s US Strategic Bitcoin Reserve EO, combined with all the macro troubles, resulted in Bitcoin taking another trip to the upper $70Ks. But if you’ve been following our weekly TA, then you know that $78K and $73K are major support zones. And indeed, Bitcoin wicked slightly below $78K, and has since seen a decent bounce into the lower $80Ks.
And thanks again to Elmer. He caught this bottom and rallied some of the troops in the Discord to do the same. So some of us were able to make some money here.
But what about now? Well, this chart is bearish, and it will remain so until we stop printing lower lows and lower highs. We do have a few signs of hope (i.e. bullish RSI divergence, decent volumes on bounce, MACD turning up), but we probably need help from macro or another major catalyst in the crypto space to turn the ship.
And where’s Bitcoin’s bottom? No one knows, but I think it’s somewhere between $78K to $69K. The latter was last cycle’s peak, so I’m expecting us to hold this level, worst case scenario.
SIGNAL: BUY / LONG bounces off the $78K, $73K, and $69K levels. SELL / SHORT rejections at the 200 and 100D EMAs, at $85.6K and $91.9K.
Ethereum (ETH)
Welcome to Hell.
Ethereum lost that very critical multi-year ascending support line at $2,150, and if you look at ETH on the daily, you’ll see that it’s now acting as resistance. Absolute brutality.
But at some point,…
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.
