It’s Show Time – Crypto Piece
Time To Make Money
Bitcoin has now hit our $89.1k target that was the 1.618 Fibonacci extension of the recent consolidation range (highlighted here).
There might be one more push up left that could coincide with a bearish RSI divergence.
But, if Bitcoin pulls back from here, then our first area of interest lies around $81.5k, which is the daily 21-EMA and also the daily green Supertrend support. IF that gets lost, then price could pullback to the daily 55-EMA that’s currently around $73k.
Some investors are worried about Bitcoin’s weekly RSI reading that’s currently at 73.75.
However, current weekly RSI levels have systematically led to more upside for Bitcoin in the coming weeks (some historical examples are shown below).
Therefore, don’t mistake a high weekly RSI reading as the end of a Bitcoin bull cycle, especially when this is coming after a multi-month consolidation.
Ethereum Analysis
Ethereum has also been on a roll and is inching closer to the $3550 resistance level.
It’s possible that price reaches there in the coming days with a daily bearish RSI divergence forming next, which could signal a very likely pullback then.
IF price pulls back from the current region itself, then our area of interest lies around $2915, which coincides with the daily 21-EMA and the daily green Supertrend support.
Once $3550 resistance is broken, then $4k is our next upside area of interest before new ATHs.
Intermarket Analysis – US Dollar
One tailwind for risk-on assets that’s brewing is the US Dollar, which has now risen to a major region of resistance, alongside a daily bearish RSI divergence.
We’re confident that the US Dollar ($DXY) is in the process of topping (at least local top) around these levels, despite Trump’s win and incoming pro-growth policies (similar to post-2016 Trump win).
In the next section, we’ll first look at Bitcoin and Ethereum’s Cycle Forecasts to get a Timing Edge. We’ll also cover the US Dollar to confirm what intermarket is telling us. Then, we’ll cover one very attractive altcoin that is setting up for a BIG move coming into year-end. Lastly, we’ll cover 2 new Crypto-related stocks that was requested by a member.
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