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 use CASH on Kamino to generate yield.
For any crypto related questions please comment on the website.
Market Analysis
These markets are wild. Last week, the masses thought it was so over. Two days ago, they thought we were so back. And now . . . well . . . they’re probably just confused. We hope you’re enjoying the beginning of Q4!!
But seriously, if you’re following this weekly TA closely, hopefully the lesson that we’re all learning together is to buy the fear, and sell / short the greed. It really is that simple. This market continually transfers money from the impatient to the patient.
So be patient, and try to do the opposite of what your screaming emotions are telling you to do. It’s not easy, but it’s important.
A few quick notes on the macro. Gold is ripping into new all time highs, and the US stock markets continue grinding higher. These are consequences of the “great debasement trade”, and all of this is a solid tailwind for Bitcoin and our alts. Moreover, the market generally expects the US government shutdown to not last for more than one month. And an ending to the shutdown means the fiscal printer goes brrrr. Also, there’s still a 94% chance that the Fed cuts rates by 25 bps on October 29th (more central banking brrrr). So the TLDR on the macro is it makes us medium-term bullish about our crypto markets.
Ok, let’s get to the charts.
Bitcoin (BTC)
Last week, we discussed a potential symmetrical triangle breakout to the upside, and that’s exactly what we got. You’ll also notice that high volumes confirmed the breakout. Hence, the price just kept pumping to a new all time high just over $126K. However, at the time of this writing, Bitcoin is correcting, with prices at $122K.
So how should we think about Bitcoin now?
While Bitcoin did technically print a new all time high, the fact that it was not substantially higher than the previous all time hit at $124.4K makes me suspect that this correction might last a bit longer, or be deeper, than what we’ve seen so far. However, understand that we do think that Bitcoin is just getting started on a much larger uptrend, but it just might not happen within the next few days.
Therefore, our primary play is to get limit long fills on the cheap, in the event that this retracement goes a bit lower than current prices. But if the opposite happens, then we can always smash market longs when another all time high breakout comes.
SIGNAL: (1) $120K limit longs. This was a major resistance level back in July, so it might hold as support here. (2) $118K limit longs. This was the local high in mid-September. $118K is also where the 50D EMA currently sits. It makes technical sense for Bitcoin to hold this area as support. (3) $114K limit longs. It’s possible that Bitcoin drops to test this former resistance line as support. This would be a great fill if we can get it. And again, if we can’t get fills in these three areas, then the best move is to go long once Bitcoin starts breaking into new all time highs.
Ethereum (ETH)
Again, apologies for the huge mess here. But it’s not really clear what technical…
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.
