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 higher stablecoin yields without leverage on InfiniFi.
For any crypto related questions please comment on the website.
Market Analysis
We’re one week post the Fed’s 25 bps cut. The US stock market is ripping into new all time highs. Gold is ripping into new all time highs. But our markets are languishing, in the immediate aftermath of some weird, and possibly manipulative, price action from late this past weekend.
However, given what’s happening in the stock and gold markets, and given where we’re at in our current cycle (i.e. Q4), I think this dip is a serious gift.
Take full advantage of it.
Bitcoin (BTC)
Last week, we speculated that we’d get a market correction after the Fed’s 25 bps cut. We recommended “limit long orders in tranches below market price, down to $112K.” And indeed, we got that correction, but it came a few days later than I anticipated, for reasons I wasn’t expecting (i.e. probably market manipulation).
Now at the time of this writing, Bitcoin is trading at $113.1K. So it’s about $1K above what I think is a major support line at $112,000.
Regardless, now is the time to put up or shut up. Profitable traders don’t make money by being scared and shaking under their bedsheets, when the herd is feeling the same. No, they do the opposite. They know where their conviction lies, and they’re buying the big dips, and selling the big rips.
SIGNAL: Get your fills now (i.e. between $112K to $114K). These are the dips that dreams are made of. Take advantage of them. If you want some downside protection, set a stop loss around $111.5K.
Ethereum (ETH)
ETH has been a tricky one, so we’re going to zoom out a bit here. Essentially, since we hit a new all time high, ETH has been trapped under some descending resistance, but it has also been holding above $4K, which formerly served as a multi-year resistance point.
We also need to point out here that the MACD (i.e. on the daily) is looking ugly, so that’s something to keep in mind when gauging whether or not ETH will hold $4K.
But below is a fresh perspective on the 4H charts. The indicators here look much better from the bull’s perspective. We’ve got a MACD that appears to have bottomed out, and an RSI that’s moving out of oversold territory.
SIGNAL: This is a trader’s dream, and I think the play is to trade these lines. Long when price holds the triangle’s support at $4,080. Short if we get another rejection at the triangle’s resistance at $4,600. Long if we get a triangle breakout above $4,600. Short if price breaks and holds below $4,000.
Gold / PAXG
Gold is ripping again. So everyone, say it with me now, “where do we start shorting it.”
Now let’s focus on the indicators for a moment. The MACD appears topped out, or close to it. The RSI is at 79, which is a high oversbought reading. This all helps build the case for a short.
However, do understand that when we’re executing these gold short trades, these are short-term swing trades (i.e. days or a week at most). That’s because gold likely keeps going higher, in the longer term.
SIGNAL: I like…
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.
