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 amplified yield using Perpflow on HyperEVM.
For any crypto related questions please comment on the website.
Market Analysis
From a macro perspective, the market is trying to figure out how much juice can be squeezed from the Fed rate cuts that should be coming this next Wednesday, September the 17th. Currently, the market believes that there’s a 92% chance of a 25 basis point cut, and an 8% chance of a 50 basis point cut, for this next week.
The Fed is basically stuck between a rock and a hard place. The rock is a slowing economy and higher unemployment, and the hard place is high inflation. But all signs suggest that the Fed will surrender to inflation in order to fuel the economy and fight unemployment (i.e. they will probably cut rates).
So the TLDR on everything above is that these cuts should be good for Bitcoin and crypto. We’ve got that, plus what appears to be a local bottom for Bitcoin, plus we’re headed into the Q4 period that’s 1.5 years after our last halving. Needless to say, our posture remains bullish.
Now with regards to the charts below, we’ve actually got a lot of good setups for you. And there’s a few that are flashing green right now.
OK, let’s get to it.
Bitcoin (BTC)
We’re mostly in the same position as we were last week. I wish I had different news for you; but if I pretended that I did, I’d be lying. However, don’t fret. Remember that most of this game is patience. So use this time to accumulate smart positions, because I can guarantee that this won’t last forever.
So Bitcoin is still trapped right under the key line in the sand. $112,000. However, look at these last 14 trading days, specifically. Yes, we’re still under $112K, but Bitcoin isn’t deviating far from this line. In fact, the asset keeps pushing into the line, over and over again. And this makes me think that we’re going to get a solid break above it soon.
Looking at our indicators, RSI is in neutral territory, which makes sense, given the low volatility and grinding price action. But it’s the MACD which suggests an upwards move is coming. The MACD line has firmly crossed above the signal line, and now both are positioned to begin ascending towards the zero line.
SIGNAL: Similar to last week, but we think that both the price range and time span to get your positions ready have shortened. So here’s how to approach Bitcoin now. (1) A $112K breakout. Wait for the price to retake and hold $112K, then go long. (2) A long limit order somewhere below that. I don’t think fills at $107K will happen anymore, so perhaps limit orders at $109K to $110K make more sense.
Ethereum (ETH)
Now this is some absolutely wild price and volume action. So last week, we signaled this symmetrical triangle, and called for a breakout long trade on high volumes. All of that happened, but price got smashed back down to the triangle’s apex, and it’s been grinding sideways at that point ever since, on high volumes. Brutal!!
The only thing I can conclude is we should prepare for a larger price move, because this uptick in volumes means the market is fighting over this asset. So…
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.
