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 access institutional DeFi yield with Upshift.
For any crypto related questions please comment on the website.
Market Analysis
Bitcoin is yet again testing another critical resistance area. This time, it’s $95.8K. A significant break above or below this level means Bitcoin should move ~5%, with many altcoins pivoting even harder.
Now we’ll discuss this a bit more below, but it’s hard to know which direction the markets will turn in the short term. But the good news is it doesn’t matter, because there’s plenty of solid LONG and SHORT setups that we can take advantage of right now in this market.
OK, let’s dive in.
Bitcoin (BTC)
We’re on the daily here for Bitcoin.
Last week, we smashed through that critical $88.5K level, which formally broke Bitcoin’s lower high structure. But now, check out the resistance we’re hitting at the 0.618 fibonacci level at $95.8K. We got a perfect touch on that line, but thus far, Bitcoin has been unable to break it.
Now I’m fundamentally bullish, so I think this all probably plays out in one of two ways over the short term:
Scenario 1: We continue coiling right under this 0.618 / $95.8K price point for several more days, before we get a hard break to the upside. If this happens, the next resistance point is $100K to $101K, which overlaps with the 0.786 fib level.
Scenario 2: The 0.618 / $95.8K area holds as resistance, and we get a retest somewhere between $88.5K to $85.7K. Within this range, we’ve got support at the previous $88.5K lower high, the 0.382 fib level at $87.6K, and the 200D EMA at $85.7K. My bet is if we do get a retest lower, this general area holds.
I do want to make an observation about Bitcoin’s volumes. Two points. First, look at the huge volumes on April 7th and the 9th, when Bitcoin tested $74.4K, bounced off it, and turned the corner. These big volumes are a sign that $74.4K might have been the major regional bottom for this cycle. A lot of buyers stepped in here, so we can view it as a big support area. Second, now look at Bitcoin’s volumes around the 0.618 / $95.8K area. They’re much lower. This signals general market indecision, meaning that a move up or down at this point are both very viable.
SIGNAL: If we get a break above $95.8K, go LONG with a TP at $100K. SHORTS are open now so long as prices are just below 0.618 / $95.8K. A good TP on a SHORT is $88.5K. If we start getting a move, regardless of the direction, the more volume you see, the more confident you can be that there’s strength in it.
Ethereum (ETH)
No big changes with ETH since last week. Bitcoin has held up, so that’s why ETH has held the 20D EMA at $1,733 as support.
SIGNAL: ETH is a scalp trade at this point. Set LIMIT LONGS at the 20D EMA at $1,733, and unload them at the 50D EMA at $1,863. Then set LIMIT SHORTS at the 50D EMA at $1,863, and unload them at the 20D EMA. Use your stop losses.
XRP
Well, XRP finally broke out to the upside of this massive symmetrical triangle, but the breakout most definitely wasn’t the full send, defcon five move that I was expecting. And look at the breakout volumes. Pretty…
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.
