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 use Yield Yak on Avalanche.
For any crypto related questions please comment on the website.
Market Analysis
It’s been a pretty uneventful week. Bitcoin has traded sideways; and therefore, most other cryptos have done the same.
But even though this last week has been a snoozefest, this can only last for so long. Sideways price action means consolidation, and consolidation means breakouts.
Also, you’ll notice as we go through the charts that a lot of cryptos are in wedges, triangles, and flags. That’s all consolidation, which means breakouts are coming.
So the question now is the following: will we be breaking up or down? Well, who gives a shit.
Try to look at the charts objectively, instead of what you want to happen. And if you feel so inclined, make some trades (i.e. longs or shorts) based purely off the technicals. Your spot bags aren’t going anywhere.
Finally, even though last week was a bore, I think there’s actually a lot of trade setups brewing. So let’s dive in.
Bitcoin (BTC)
We’re on the four hour chart here. In the short term, this chart isn’t a pretty one for the bulls. Bitcoin has managed to stay above $80K, but it hasn’t yet mustered the power to break above the 200D EMA, which is currently at $85,500. And all the indicators are announcing weakness and indecision. Downtrending EMAs, low volumes, and a neutral RSI and MACD.
Now you can draw a few different rising wedge patterns on the chart, depending on what angles you want to take. But regardless of how you do it, they’re all indicating a continuation of bearish price action.
So overall, it seems like the market is waiting for an external catalyst to either send Bitcoin up or down, and it’s willing to go either way. Therefore, I think the move with Bitcoin right now is to wait, watch, and be patient.
SIGNAL: The lines in the sand are the two horizontal white ones on the chart. There’s the support line at $80K, and the resistance line at $85.5K. If you look at the daily EMAs, you’ll find that the 200D EMA and the 20D EMA are at $85.5K right now.
Short term, you can trade within this range, but it’s going to be choppy. LONG at $80K and SHORT at $85K. But long term, trade a breakout from this range. LONG a confirmation above $85.5K, and SHORT a confirmation below $80K.
Ethereum (ETH)
We’ve got a trade brewing for Ethereum. This is the 4 hour chart.
Honestly, I still don’t know if this is an ascending or quasi-symmetrical triangle, but it doesn’t matter. What we definitely have is consolidating price action, with resistance forming slightly lower highs, and support forming lower lows. The longer term price action suggests a bearish continuation pattern, but the more aggressive upwards sloping support line suggests a possible price reversal. This can break either way.
Let whatever happens, happen. Just trade the breakout.
SIGNAL: LONG a confirming close above resistance at $1,950. A good take profit level is $2,150. SHORT a confirming close below support at $1,880. The technical take profit here would be $1,680.
XRP
XRP’s been one of the stronger cryptos…
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.
