Welcome to the second 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.
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.
Table of contents
- Fundamental overview
- Bitcoin and Ethereum chart
- Blood’s articles, and trading tips of the week
- Concluding notes
This week we may have seen a bit of a dump on Wednesday, but the key factors of the bull run – from inflation to the moves of big market players – are extremely bullish. Most importantly, new inflation data has been published in the US, and the consumer price index (basically a measure of the prices for all the main things that people spend money on) showed inflation at a whopping 6.2%. In simple terms, this means that holding your money in USD leads to a 6.2% annualized loss of purchasing power, for huge institutions as well as for working-class people trying to save up some money. A lot of market participants – again, from institutions to the average Joe – are not going to be okay with this, and they’ll buy the best inflation hedge ever, Bitcoin, pushing up the whole crypto market. Apart from this, Tim Cook, the CEO of Apple, also revealed that he owns crypto. Of course, this could also be the case for many other CEOs of top companies, and now they’ll have an easier time going public with that information, leading to even more big players buying crypto. The only potentially bearish factor is the Evergrande situation in China, but this is so uncertain and complex at this point that it’s best to wait a bit until we get some more clarity on how it will unravel. Until then, just try and not get too leveraged.
Looking at the Bitcoin/USDT daily chart, we can see that BTC has broken out of the range that it held from October 21 to November 8. After breaking out of it, BTC made a new ATH of $69,000 and soon after it dumped below April’s ATH. We are currently testing the previous range high/april ATH, and turning this level into support would be a good sign of continuation.
EMAs on D1 are upwards which is a good sign for bullish continuation and so far the EMA21 (green line) is holding as support. EMA21 is also approaching the range high level meaning there is good confluence at this level and we could see a bounce here. But still, keep in mind that the weekend is coming, so liquidity will be low and we could see some unexpected moves. If the current level is lost, we could easily see it go sub $60k (but this doesn’t change anything about the bigger picture, of course).
The Ethereum chart has been in bull mode since the $2800 level, climbing and looking like a staircase with very shallow low time frame corrections. If we are looking at the technical levels on this chart there is really no way to chart the top/resistance, so it would be better to look at the ETH/BTC chart. Looking at the ETH/USD chart we can also see that EMAs are upwards sloping and EMA21 on D1 chart is respected and so far every time ETH got close to ema21 it was a good long opportunity. Breaking below the EMA21 could indicate a short term bearish trend.
If you take a look at the second chart (ETH/BTC) which we discussed in the first newsletter, we can see that ETH has indeed flipped the key level to support and bounced off it. Similar to bitcoin there is a good confluence of EMA21 and support on that level which seemed to be strong enough to hold. The next technical level I will be looking at is the 0.08 level.
Blood’s content recap
“Wicks tell a story about a painful event where either the sellers or the buyers get beaten.
A long tail tells that the sellers wanted to push the price down and vice versa.
Long wick candles work as a source of confirmation, use them.”
My website is finally live and the main reason for this website is to gather all my content on one site, accessible to everyone. The current website is only the basic structure and much more will come in the upcoming weeks.
Check it out here -> https://bloodgoodbtc.com/
The idea is to offer you:
- Learn to trade Crypto
- Trade setups
If there is anything else you would like to see on the website feel free to send me a DM on Twitter with your ideas and wishes.
You shouldn’t be surprised to read that I’m still as bullish as ever on the macro cycle, and the only thing I’m really waiting to see is what will happen with Evergrande. Of course, I’ll update you on that as soon as there’s some clarity, but I believe that even a fairly negative outcome wouldn’t be too bad for crypto. Inflation isn’t going anywhere, and that’s all the incentive that the market needs in my opinion.