Welcome to the eight issue of Bloodgood’s notes. The idea of this newsletter is to give you an overview of the previous week’s fundamentals and what happened on charts as well as to remind you of this week’s articles, secret TA tips, and trading calls. Basically, it’s about giving you all the key info in one place.
Table of contents
- Fundamental overview
- Bitcoin and Ethereum chart
- Blood’s content recap
- Concluding notes
As this community grows, I have a duty to give back to all of you that helped me and supported me to become what I am. This free newsletter is just another way to share my experiences and prepare you for the journey that’s ahead of you.
The new year has started and the markets haven’t been showing too much certainty so far. On the other hand, the biggest non-exchange Bitcoin wallet – probably the biggest whale in existence, which I mentioned previously in this newsletter – has been showing an insane amount of conviction by adding over 800 BTC over the past week. As of now, this address holds almost 121k BTC and has been accumulating every dip, as well as selling the tops. The fact that the whale is now in accumulation mode is definitely positive to say the least.
Bitcoin also turned 13 in the past week, more specifically on January 3rd, a date known as Bitcoin Genesis Day. The first Bitcoin block was mined on this date in 2009, and it’s always absolutely mindblowing to consider that Bitcoin is only 13 years old. What crypto has accomplished is insane; something that any other industry would take decades or even centuries to build. And it all happened in just over a decade.
At the time of writing, Bitcoin is trading at $46,500 and in the last letter we saw that it managed to break above an important trendline and resistance at $48,500 which was later on rejected. At the moment the previous trend line seems to be holding, but we are slowly approaching the key daily support level at $44,000. Losing that level would signal that we could potentially drop to the key weekly support at $39,000.
In order to resume the bullish trend we would need to break above the $53,300 level, which almost happened at the end of year, meaning the next time there is a higher chance we break through it. In case we go in the other direction and drop to the key weekly support at $39,000 that would be a great opportunity to buy. On the bright side, the daily RSI has reset and we could see some relief to the upside.To sum up, we can trade current ranges on lower time frames, or stay out until a clearer direction can be seen and wait for a reclaim of $53,300 or drop to ~ $39,000.
Ethereum at the time of writing is trading at $3787, right above the support at $3600. Similar to Bitcoin’s movement after the holidays, we have lost a key support at $4000. We are now trading in a range that formed before the holidays. As long as ETH keeps respecting this range I will buy the range low and sell the range high until we get a clear weekly breakout above $4400.
21 EMA seems to be a strong resistance and ETH formed several lower highs, meaning that we would first need to break above it and reclaim the $4000 level to even think of continuation.
Structurally, ETH/BTC looks way better than the USD pair as it managed to stay above the weekly breakout level as well as the 0.08 level. Ethereum has also managed to reclaim the EMA21 on the daily chart which acted as a resistance earlier on.
To sum up, I will be trading the range on Ethereum as it seems to respect the levels so far, and wait for the weekly reclaim of $4400 to load more.
Blood’s content recap
Secret tips #19
“How to Master Range trading 101
Forget trading the trend and learn to trade the range.
Use the example below as a Cheat Sheet for range trading.
Be prepared, avoid sweeps and use range confluence for super entries.”
“Master the range.
1. Use my two favorite indicators.
2. Be a sniper and catch the confluence.
Wait. Hunt. Kill.
These can be used for managing and exiting positions. Over and over again.
Another week of range-bound and overall largely boring action, but that has an important advantage if you’re a swing trader, since you didn’t have to worry about any strong new trends starting on BTC or ETH, giving you more time to just enjoy the holidays. On the other hand, range trading is the way to go for now for the two biggest coins: as long as these conditions hold, buying range lows and selling range highs will continue to work.
Last but not least, I wish all of you all the best in the new year! 2021 was quite the ride, and I expect 2022 to be filled with even more opportunities in this rapidly developing space.