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 borrow against and profit from xStocks on Kamino.
For any crypto related questions please comment on the website.
Market Analysis
We’re in the goldilocks zone right now for trading these crypto markets. We’re in the final six-month stretch of the traditional four-year bull cycle, Bitcoin is pumping, but now altcoins are pumping harder.
If the next five to six months play out similar to the past cycles, then there’s loads of opportunity here, and some good money to be made. Having said that, keep the enthusiasm in check. Maintain good trading discipline, use your stop losses, and stick to your system.
Alright, let’s get to the charts.
Bitcoin (BTC)
We’re on the 4-hour chart here. Bitcoin is currently coiling inside a triangle pattern. Now given we’re in a bullish uptrend, the odds are higher that Bitcoin breaks this triangle to the upside, rather than the opposite.
Projecting this triangle’s height over an upside breakout, our price target is $126.8K. The technical price target on a downside break is $108K. But if we get a downside break, I’d expect price to not go any lower than $112K.
Three of our four primary leading indicators support an upside breakout.
- RSI: Tilted up and crossing above the 50. More bullish than bearish.
- Stochastic: %K (i.e. blue line) above %D (i.e. orange line), and both crossing above 50. Bullish.
- MACD: Projecting a crossover above the zero line soon. Bullish.
- OBV: Flat with no divergences. Neutral.
SIGNAL: Look for an uptick in volumes as price breaks either above or below this triangle. Go long on an upside breakout. Your TP is $126.8K. You can also try shorting on a breakdown. Your TP is $112K.
Ethereum (ETH)
Zooming out on the daily to get the bigger picture. ETH’s price action over these past two weeks has been fantastic, but we’re now approaching a major, multi-year resistance level at $3,950.
Zooming in closer, you can see that our leading indicators are signaling a slight pullback or period of consolidation under this resistance level. RSI is looking to cross below 70. Stochastic lines are looking to cross below 80, and MACD looks toppish right now.
SIGNAL: Shorting ETH doesn’t make sense, given the larger back-drop. We think the play is still going long, but it’s trickier now, and you’ll want to try to stick your entry. Here’s the two best ways to do that, from our perspective:
- Wait until the pullback / consolidation under $3,950 has neared completion. Signals are your indicators flashing green (they’re red right now), and / or ETH has pulled back and held a regional support / resistance level (e.g. $3,500).
- Alternatively, if ETH slices through the $3,950 resistance, then you’re set up for a monster breakout trade. You can long once ETH breaks the resistance, or long once ETH uses this resistance as support.
Garlic House
XRP is in an interesting position here. On the one hand, we’re in the aftermath of that monster triangle breakout, and we’ve thus far used the prior ATH at $3.40 as support. On the other hand, all our indicators are looking 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.
