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 access yields and rewards in the Hyperliquid ecosystem.
For any crypto related questions please comment on the website.
Market Analysis
The markets are spooked because the macro economy is showing signs of stagflation, as there’s worries that J. Powell might maintain a more hawkish Fed posture in this environment.
Stagflation is high inflation, plus under-performing economic metrics (i.e. high unemployment and low economic output). And stagflation puts the Fed in a bind, because the Fed essentially has to sacrifice one of their dual mandates to save the other. And for whatever reason, it appears that market participants are nervous that J. Powell might signal hawkishness this Friday at the Jackson Hole Summit.
So everything above, from how I understand it, is why the markets have been bloody. But having said that, we’re still bullish. No matter how you slice it, rate cuts are most likely coming, corporations are still accumulating, and Q4 is when things can get particularly explosive.
So we see this dip as an opportunity.
OK, let’s get to the charts.
Bitcoin (BTC)
We’re back on the daily chart for Bitcoin. Apologies for all the lines. But basically, we’re in knife-catching mode right now.
Bitcoin correcting after hitting a new ATH above $124K wasn’t unexpected. And neither was it for the price to retest this bull flag’s resistance as support at $114.5K. But what was surprising was seeing $114.5K fail to hold as support.
Given $114.5K has failed to hold as support, expect the price to revisit $112K. And $112K really is our major line in the sand.
If $112K holds, this chart will remain to look good for the bulls, and we can expect prices at minimum to continue consolidating between $112K to $124K. If however $112K fails, then we need to prepare for a deeper correction. Possibly to the bottom of this bull flag (i.e. $108K), or even to the 200D EMA at $103K.
SIGNAL: Remember, we do the opposite of the larger market’s emotions. We’re buying this fear. $112K is a great place for longs and spot buys. If $112K fails, we like deploying more longs and spot buys at $108K and $103K.
Ethereum (ETH)
On the daily here for ETH. As we suspected, ETH effectively retested its ATH at $4,800, and the price is currently in a correction mode now.
So at the time of this writing, ETH is just above $4,100, but I’m expecting it to keep falling to $4K, and for the bulls to step in there. $4K has served as a major resistance level since March of 2024, and breaking it was a big deal. Therefore, I’m expecting buyers to step in aggressively at this price point, and for ETH to effectively remain above it.
SIGNAL: Play the $4K support level. Limit spot and long buys at $4K for the win.
Garlic House
On the daily for the Bread Garlic House. After taking a fresh look at this chart, I think the argument that XRP is consolidating inside a symmetrical triangle makes sense.
And this is especially the case when you factor in the volumes. Sellers have been dominating ever since prices hit the new ATH, but these volumes are clearly trending downwards, as price continues to…
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.
