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 passive yields on SOL and stables with restaking platform Solayer.
For any crypto related questions please comment on the website.
Market Analysis
Bitcoin is still battling the mid-$90Ks, as the market is undecided on whether we’re due for a pullback and retest of some prior resistance levels, or if it’s up only from here. And of course, this technical uncertainty reflects the same in the macro picture (i.e. lots of jitters about the larger economy, but several bullish catalysts for Bitcoin).
So with that landscape in mind, let’s dig into the charts, and see what opportunities the market is giving us.
Bitcoin (BTC)
Last week, we posited that Bitcoin would either (1) break through the 0.618 fib level at $95.7K and head to $100K, or (2) get rejected at the 0.618 and retest the $88.5K to $85.7K region. Well, what we got (so far) is a fake-out to the upside, with prices in the same place they were a week ago.
So what about now? Well, the technicals are indicating that we should go lower for that retest. Here’s a few points to consider:
- Volumes: They’ve been super low since we got above $94K, both for the buyers and sellers. This signals market indecision.
- EMAs: They’re all lower than the price, and we haven’t retested any of them yet. So when you combine this with the low volumes, it seems like an EMA retest is overdue.
- MACD: We’re getting a bearish crossover now (i.e. blue line falling below the yellow). This is just further confirmation about the loss of momentum for the bulls.
SIGNAL: I think the best two plays at this point are the following:
- Set a limit buy / long order somewhere between $90K to $84.2K. Apologies for the large range here, but there’s a lot of converging and overlapping support within this range (i.e. EMAs, price support zones, the 0.382 fib level), which makes it difficult to pin down one target.
- Short Bitcoin between $95.7K to $94K. Obviously, this is a bet that the 0.618 at $95.7K continues to hold as resistance. The recommended stop loss is just above this fib around $96.1K, and the take profit is anywhere between $90K to $84.2K.
Ethereum (ETH)
ETH is such a snoozefest. How much longer until we stop covering this asset all together!!!
So last week, our signal was to scalp trade this by setting limit longs at the 20D EMA and unload them at the 50D EMA. And then to set limit shorts at the 50D EMA and unload them at the 20D EMA. Since that signal was issued, price hit the 20D, pumped to the 50D, and dumped back to the 20D.
But now the 20D and 50D have significantly converged, so I’m not sure that the juice is worth the squeeze on this scalp anymore. Rather, at this point, I think it makes more sense to trade the eventual breakout.
SIGNAL:
- If Bitcoin surprises us and starts pumping hard, ETH probably breaks the 50D EMA at $1,850 to the upside. If you see that happen, go long with your stop loss just below the 50D EMA.
- But if we get that bigger Bitcoin retrace, ETH probably loses the 20D EMA at $1,770. You can go short here, with your stop loss just above the 20D EMA.
XRP
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.
