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 invest in physical real estate onchain with RECC Finance.
For any crypto related questions please comment on the website.
Market Analysis
It’s been a wild trading week as Bitcoin broke down, bounced at $112K, and has since recovered back inside its previous technical trading range. We’ve got all the details on this latest move, how to play Bitcoin from here, and all the latest signals for your major altcoins and gold.
OK, let’s get to it.
Bitcoin (BTC)
Starting with a zoomed out perspective on the daily, Bitcoin taught us again that whenever it makes a big move, it likes to revert back and use its prior resistance as support.
The major resistance in 2024 was $74K. When Bitcoin shot into the $100Ks, it eventually dropped and bounced off $74K as support. Similarly, after we shot into the $120Ks, Bitcoin dropped and bounced off $112K as support. $112K was the resistance from earlier this year.
So here’s the lesson to remember: if Bitcoin pumps again, and creates a gap, prepare for an eventual drop to use the latest resistance level (i.e. currently $123K) as support.
Turning to the 4 hour, you can see that since last week, (1) Bitcoin broke below this falling wedge, (2) touched and bounced off $112K, (3) got back inside the wedge, and (4) then used the bottom of this wedge as support at $113.6K. At minimum, the bulls want to see the bottom of this wedge hold.
With regards to our indicators, RSI and the Stochastic are neutral, and the MACD is in a bullish upswing.
SIGNAL: Falling wedges usually break to the upside, especially in uptrends. Go long if Bitcoin breaks and holds $117.8K. The technical target on this move is now $125.7K. If Bitcoin breaks below the wedge again, you can try going long at $112K, hoping for a double support bounce. But it’s probably best to use a stop loss here, because if $112K fails as support, we could see a deeper retracement into the $100Ks.
Ethereum (ETH)
On the 4 hour here. The upper white line is the multi-year descending resistance at $3,950. The lower white line is what appears to be the bottom / support of ETH’s new trading range, at $3,365.
If Bitcoin revisits $112K, then expect ETH to revisit this lower white line again. But at the end of the day, our expectation is that ETH remains within this range (i.e. $3,365 to $3,950), so long as Bitcoin remains between $112K to $123K. Bitcoin breaking above / below its respective range probably means ETH breaks above / below its own range.
SIGNAL: Go long if price revisits $3,365. Go long on a breakout trade when you see ETH break through the $3,950 resistance. This latter trade appears to be a monster long setup.
Garlic House
On the 4 hour here. Since XRP put in a new ATH at $3.65, it’s been caught under this descending resistance line. But, that line was cleanly broken yesterday, and now price appears to be using it as support.
The indicators are showing there’s room for the asset to run here. RSI is above 50, but not overbought yet. And the MACD is in a bullish upswing, and crossing over the zero line now. However, do note that the Stochastic is already in…
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.
