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 put your stablecoins to work earning on Gearbox Protocol.
For any crypto related questions please comment on the website.
Market Analysis
Is it just me, or do the markets feel straight up weird right now? It’s like the bullish energy has been sucked right out of the room. But we don’t have full-blown bear vibes either. Rather, it’s more like we’re in some kind of a late summer, sleepy lull.
But regardless of feelings, we all know that things can and will shift. And this time is no different. So it pays to stay engaged, even when the markets are sleepy. In fact, you probably want to be making moves now, rather than waiting for when the market wakes up.
So with all that in mind, let’s get to the charts. We’ve got some good longs and shorts for you today.
Bitcoin (BTC)
We all want Bitcoin to do well. I want it to do well. You want it to do well. But we’ve got to be honest about what the charts are telling us.
We’re on the daily here, and this chart, to me, says Bitcoin is probably going lower. Now, understand that it’s very possible that we’ve already hit bottom. But once again, that’s not what the chart is telling us.
So why? Two reasons.
- $112K is the major line in the sand. We got our first daily close below it on Monday. Let’s see how the rest of the week plays out. But whether we get closes below or above it is a strong indicator as to where price goes over the next few weeks.
- The MACD. Both lines have crossed below the zero line and are trending down. This indicates that momentum is still falling, which means we probably haven’t found the bottom yet.
SIGNAL: Trade off $112K. You can go short with daily closes just below $112K. Your take profit on this short is the 200D EMA at $104K. Go long at $104K. Go long if price flips $112K and holds it as support.
Ethereum (ETH)
ETH in my opinion is a tough call right now. The price action looks schizophrenic. I’m bullish in the medium to long terms, but I’m 50/50 about what happens over the next week or two. I could go either way here.
And the reason is because prices are just under ETH’s all time high right now (i.e the white line at $4,850, established in 2021). Therefore, if crypto continues to be anemic over the next week or two, then ETH might be due for a pull-back. Alternatively, if the ETH corporate treasury bid is full steam ahead, and ETH breaks $4,850, then we could see a serious blue sky pump.
Like I said, this is a tough one. Now, here’s another way to view the price action . . .
Since August 3rd, ETH has held this ascending support line perfectly. Therefore, we know that ETH must make a decision soon. It either holds the ascending support line and breaks into a new ATH. Or, the prior ATH holds as resistance, and we break below the ascending support line. One or the other must occur.
SIGNAL: Trade this triangle. Go long if ETH breaks above $4,850. Go short if ETH breaks below the ascending support line at $4,350.
Garlic House
No changes since last week. We’re still consolidating inside this symmetrical triangle pattern, but I have adjusted / lowered 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.
