Tick Tock, Bulls Rock – Crypto Piece

Thanksgiving Special

Happy Thanksgiving to all our US subscribers! Enjoy the feast and the Money Making opportunities highlighted in this article. Luckily, the crypto market never sleeps!

Time is ticking, but the bears have still been unable to put in a sizeable retracement, let alone a reversal in the crypto space. Despite the Department of Justice (DOJ) and other government bodies having a very uncanny timing of announcing their Binance-related settlement + oversight right before Thanksgiving (a thin liquidity period), Bitcoin didn’t seem to care. Instead, Bitcoin continues to remain in a washing machine price action, while maintaining the uptrend. A similar price behavior was seen in October/November 2020, which ended in more upside. Is that what’s on the table this time around? That would be max pain!

Key Levels

Bitcoin continues to battle the $37.5k, but is showing promising signs of being able to capture it. A confirmed close above this level would put $41.2k region on the table. Bullish momentum is still on Bitcoin’s side, albeit with an overbought RSI. However, overbought signals can remain overbought for sometime, especially during strong trending markets.

The current levels around $37.5k also has confluence with the 3.618 Fibonacci extension when measured from the pre-FTX drop to the 2022 lows. Interestingly, the 4.236 extension comes in around $41.4k region, providing further confluence for the $41.2k region highlighted above. These Fibonacci extensions have acted as key support/resistance regions throughout the 2023 run-up (marked in circles in the chart below).

Ethereum Showing Strength

Ethereum has also begun showing signs of strength, nominally and relative to Bitcoin as well. 2 weeks ago, Ethereum had its 9 EMA cross above the 21 and 55 EMA on the weekly chart. Last week, the 21 EMA crossed above the 55 EMA on the weekly chart. Both these developments show strong upside momentum for this crypto. Moreover, the MACD also remains in bullish posturing while being above the 0 line. This mix should be enough fuel for Ethereum to hit at least $2300 (upward sloping resistance line) and possible even the next resistance level around $2500.

The ETH/BTC ratio is showing a similar behavior to Summer 2022, which ended in Ethereum outperforming Bitcoin for several weeks. Even the MACD bounced bullish, and is close to crossing above the 0 line, another sign of Ethereum showing more strength than Bitcoin. This should also help altcoins perform well. The 2 resistance levels for this ratio to keep a close eye on are the 0.0596 and 0.0635 region.

Altcoin Setups

We’ve already highlighted setups for Oasis Network ($ROSE), Chainlink ($LINK), Dogecoin ($DOGE), Polygon ($MATIC), and Avalanche ($AVAX) in the earlier Crypto Pieces. We’ll review these setups in the coming weeks. Here are some additional setups as a Thanksgiving special from Cycles Edge:

Moving forward, the content below (and other additional content) will be for Paid members only.

1)    SushiSwap ($SUSHI)

$SUSHI has just confirmed its break above the macro downtrend line with last week’s close. It’s currently hovering right above this line, which should now act as support. The MACD is bullish and is about to cross above the 0 line. Moreover, volatility is rising on our “Secret Sauce” indicator, indicating a big move is in the works. Putting the momentum + volatility (only speaks to size, not direction), the bias is for a big move to the upside. The key targets are $1.51 and $2.73 levels. An aggressive stop loss can be put under this week’s candle low ($0.94) and more conservative stop losses can be put below the support zone that sits between $0.78 to $0.91 region. These stop losses can be moved higher (below the macro downtrend line) once price nears target 1.

2)    dYdX ($DYDX)

$DYDX has already broken above its macro downtrend line back in October 2022, and has retested this resistance flipped support in December 2022. However, this altcoin had still been in an accumulation range (green zone), which it broke up from 2 weeks ago. Last week’s candle held above this region, acting as further confirmation of the breakout. The MACD is bullish and has crossed above the 0 line. Moreover, volatility is rising on our “Secret Sauce” indicator, indicating a big move is in the works. Putting the momentum + volatility (only speaks to size, not direction), the bias is for a big move to the upside. The key targets are $4.40, $7.16, and $11.27 levels. An aggressive stop loss can be put under this week’s candle low at $2.85 and more conservative stop losses can be put below the breakout candle’s low at $2.22. These stop losses can be moved higher (below this week’s candle low) once price nears target 1.

Missed Amazon? Don’t Worry, Coinbase Is Here

An interesting fractal that we wanted to highlight was Amazon from 2000. When the period of 2000 to 2004 from Amazon is put on Coinbase from late-2022 onwards, the 2 assets have an eerily similar price action. If this holds true, then Coinbase should be heading to $200 in early 2024. Moreover, if this continues holding true for the years to come then Coinbase would have significant upside in the coming years. While this should not be the only factor used in investing in Coinbase, it does provide a very interesting take on where Coinbase might be headed, especially with Binance under government scrutiny and BlackRock having ties with Coinbase (a simple “Blackrock and Coinbase partnership” Google search will show the necessary details for those interested).

We’re going to gradually start increasing the amount of content for the Paid members. We already have something special in the pipeline that should be a massive value add. We’ll provide more information in the coming weeks. Once again, Happy Thanksgiving. Until next time!

Disclaimer - All materials, information, and ideas from Cycles Edge are for educational purposes only and should not be considered Financial Advice. This blog may document actions done by the owners/writers of this blog, thus it should be assumed that positions are likely taken. If this is an issue, please discontinue reading. Cycles Edge takes no responsibility for possible losses, as markets can be volatile and unpredictable, leading to constantly changing opinions or forecasts.