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 lock in high yields on Huma Finance.
For any crypto related questions please comment on the website.
Market Analysis
We’re still very much in recovery mode after last Friday’s crash, which was the largest liquidation event in crypto’s history (and Bitcoin is at prices not seen since two weeks ago . . . sometimes, we’ve got to remind ourselves just how far we’ve come).
Now the current price action we’re seeing in crypto is a good representation of the mixed signals and overall confusion that’s prevailing in the global markets. On one side, it’s Q4 and the money printer will just keep doing its thing. But on the other side, we’ve got the USA – China trade war threats, plus concerns that the AI trade could be in a bubble.
It’s a tough one. Having said that, we’re not big fans of tucking our tails and running away when there’s some blood in the streets. Rather, a better approach might be that if you’re buying this dip (I’m talking about spot here), stick to the assets where you have high conviction.
So here’s a simple test: if the asset you want to buy now is down another 10% tomorrow, will you still feel confident about it? If the answer is no, then you need to rethink your selection.
Ok, let’s get to the charts.
Bitcoin (BTC)
The symmetrical triangle pattern we looked at last week is still on the chart, because it’s still relevant. Yes, Bitcoin punched through both triangle lines during the liquidation event, but prices quickly recovered back inside the triangle. And since the crash, prices have remained above the support line, with the exception of some very small wick breaches to the downside. No big deal there.
With regards to the triangle’s resistance, you can see that prices are resting on top of this resistance line right now. Hint, hint.
Below is the four hour chart with two technical indicators, the Chaikin Money Flow (CMF) and the MACD. Read up on the CMF. But for now, understand that it’s similar to the RSI, but it also combines volume. So it’s good for spotting accumulation or selling before larger pumps or dumps. Currently, the CMF has crossed above the zero line, and there’s some bullish divergence that’s formed over the past few days.
The MACD has not crossed the zero line yet, but both lines are now trending up, with the MACD line above the signal line. Thus, the momentum is headed in the right direction.
SIGNAL: (1) Market longs at the top of this triangle at $113K are open now. From a technical perspective, I think it’s a good place to go for it. (2) I also like limit longs at the 200D EMA, which is coming in at $108K. That’s a good opportunity for a cheap scoop, if it comes again.
Ethereum (ETH)
Not going to lie, I’m kind of hating the ETH chart here. First, it’s difficult to do TA on this thing. And second, the price action in general isn’t inspiring much confidence.
Having said that, I think we can now safely say that $3.5K should serve as some firm support moving forward. That’s where the 200D EMA is coming in, and that’s where the market stepped in for ETH during last week’s crash. On…
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.
