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 high APRs and airdrop rewards with Momentum on Sui.
For any crypto related questions please comment on the website.
Market Analysis
A big Bitcoin move is upon us. The significant increase in volumes is telling us that it’s here. And most of the altcoins are either in sideways or falling wedge consolidating patterns, just waiting for the King to tell them which way to go.
That’s your high-level summary, except for gold. The yellow metal has found support at the 50D EMA, and it can serve as a good hedge for crypto heavy bags.
OK, let’s dive in.
Bitcoin (BTC)
We’re on the four-hour chart here for Bitcoin. Last week, we ended the discussion with a volume and price analysis. And that’s where I want to pick back up now.
So we discussed the idea that Bitcoin has been getting into these consolidating patterns (i.e. technically rectangles), and as price consolidates, volume falls. Then, as price prepares for a break out, volume turns the corner, it increases, and then Bitcoin breaks out.
Now it’s helpful to step back and ask why this happens. It’s part collective market psychology, part self-fulfilling prophecy. When price starts consolidating, a lot of participants stop trading, because they know price might not move much for a while. So, volume falls. But this can only last so long. At some point, price makes a small move, some traders enter again, volume picks back up, and then a snowball effect occurs. And that leads to a breakout, accompanied by huge volumes, as traders, who were waiting for a move, are now piling back in.
But in practice, here’s the key to understand: when we’re in these consolidating patterns, an uptick in volumes is your leading indicator that a big move is coming. It’s your signal to get ready. And Bitcoin is giving us that signal right now.
SIGNAL: Trade this breakout. I think we get it this week, or within the next day or two. Go long when you see a daily close above $105.7K, with prices holding this level as support. The take profit from this rectangle is $110.7K. But we will be in all-time high territory here, so you might instead want to slap on a trailing stop loss and see if Bitcoin runs.
Now if this entire thing turns around and we break south, go short with a daily close below $100.7K. The take profit here is $95.7K, which incidentally is also where the 50D EMA currently sits.
Ethereum (ETH)
Ethereum is primed and ready to follow Bitcoin to Valhalla or Dogtown. ETH is just waiting for Bitcoin to make its move. But those two green hammer candles (i.e. at the 200D EMA yesterday and two days ago) are a pretty sight to behold. Buyers are stepping in and holding this line. That’s good to see, and it’s also interesting that both wicks touched the VWMA.
SIGNAL: Same as last week. Long / short ETH on the Bitcoin pump / dump. Our targets remain unchanged. ETH to $3K to $3.2K (long TP) on a Bitcoin pump. ETH to $2K (short TP) on a Bitcoin dump.
PAXG (Gold)
I really like this long-setup on gold right now, especially as a hedge given anyone reading this is likely heavily allocated in crypto. And with all the…
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.
