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 yield and points rewards on Resolv.
For any crypto related questions please comment on the website.
Market Analysis
What a week it’s been! Congratulations to you all on the new Bitcoin ATH, and excellent job for trudging through all the price lows and sideways ranges. We’re in blue sky pump territory now, so enjoy the moment. However, start making your plan now for the price points where you’ll start selling your spot bags over the next several months.
We’ve got some killer TA and trade setups for you below, so we want to dive right in. But just a quick house-keeping note, the indicators moving forward should be EMAs, volume, RSI, and MACD, but I’m adding on-balance volumes (OBV). OBV is one of the better leading indicators, and I think we’ve been sleeping on it. So do yourself a favor, and read up on what it is, how to use it, and what price-to-OBV divergences can signal.
Alright, let’s get it.
Bitcoin (BTC)
We signaled last week that a Bitcoin breakout was probably coming. And sure enough, Bitcoin smashed through this descending resistance, and hit above $120K, which was our price target on this move. Congratulations to everyone who caught some or all of this trade!
Now where does Bitcoin go from here? Well, it will probably be one of these three scenarios:
- A retest and bounce off the prior range high at $112K (note that the 20D EMA is just above that point now).
- Consolidation and sideways ranging between $115K to $123K.
- Bitcoin keeps ripping faces.
So are any of our indicators flashing signal as to which of these three options are the most likely? The short answer is not really. The longer answer is that maybe (1) or (2) are most likely, due to Monday’s shooting star candle pattern, RSI is declining, and the MACD line appears to be topping out (all bearish).
So then it must be time to short Bitcoin? Absolutely not. We think Bitcoin goes higher from here over the next several weeks. So don’t pick up pennies on the freeway when you can hitch a ride to the bank. Instead, start preparing for your next long entries now. Meaning, if (1) or (2) does play out, then we’ll get the time and prices to pack our bags at a discount.
SIGNAL: Set limit longs / spot buys at the 20D EMA at $112.5K, and at the bottom of Tuesday’s candle at $115.7K. You can also set a third order in between these two points, at around $114K. As the 20D EMA keeps moving up, keep moving up your corresponding limit order.
Ethereum (ETH)
Ethereum is showing some really interesting divergent strength against Bitcoin right now. Compare ETH’s last few candles against Bitcoin’s above. See what I mean?
The MACD and RSI never got overheated, so I think ETH has more fuel left in the tank. But check out the on-balance volumes. They’re been ripping. Meaning, buyers are really accumulating ETH.
Overall, I’m not so sure ETH gets a pull-back to the top of its former range at $2,730. To me, the chart suggests either ranging price action; or more likely, price grinding / shooting north.
SIGNAL: We’re not expecting a big pull-back for ETH here. So, pack limit…
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.
