Bitcoin is currently in a phase called the “Blood Zone,” marking its lowest point in 125 days and breaking some important patterns. Let’s break it down into simple terms:
Key Things to Watch:
1. The 21-Week SMA (Simple Moving Average):
The 21-week SMA shows Bitcoin’s average price over the last 21 weeks. Bitcoin has recently fallen below this line, which usually isn’t a great sign. In the past, staying above this line meant good times. Dropping below might suggest this period of growth could be weaker than hoped.
2. RSI (Relative Strength Index):
The RSI is like a health check for Bitcoin. It has dropped from a strong 88 to the 40s. Staying above 50 generally means the market is healthy, while dropping below can signal trouble. Right now, Bitcoin is around 45. If it stays here or improves, it’s a good sign.
3. Stochastic RSI:
This measures Bitcoin’s momentum, or how fast its price is changing. We’re looking for a “bullish cross,” which is a signal that the momentum might start picking up again. If this happens, it could mean Bitcoin’s price will rise.
4. Timing:
Big changes in Bitcoin’s price often happen after a Stochastic RSI cross every six months. The last one was in February 2024, so we might see something happen around late July to early August 2024.
What to Do:
- Keep an eye on the Stochastic RSI each week for a potential bullish cross.
- Check shorter timeframes like the 6-day or 3-day charts for early signs of this cross.
In simple terms, Bitcoin is in a bit of a tough spot, but there are signs to watch that could hint at a recovery. Keep an eye on these indicators, and you’ll get a good idea of what might happen next!
CHARTS
LINK – WEEKLY CHART ANALYSIS
LINK has encountered some turbulence recently but has managed to find support once again at the green S1 line, hovering around $12.
The Stochastic RSI is beginning to show early indications of a potential bullish crossover. If the SRSI makes this upward cross at these critical support levels, our next target will be the resistance at the red R1 line, approximately $18.5. To catch an early signal for this potential SRSI crossover, check out the 3-day and 5-day charts.
Currently, LINK is trading below the 21 and 50 EMAs, represented by the yellow and green lines on the chart. It’s important to exercise caution, as the downward curling of these EMAs could exert pressure on the support at the green S1 line at $12.
Key Levels to Watch:
- Support: $12 and $9.2
- Resistance: $18.5 and $21.4
PYTH – WEEKLY CHART ANALYSIS
PYTH has been on a downward trend since March, following its all-time highs, and has struggled to break this trend.
However, there’s a glimmer of hope with the recent formation of a potential double bottom pattern. Last week’s candle showcased a bullish wick to the downside, indicating buyer interest at these levels.
The Stochastic RSI is hinting at a potential upward cross. If PYTH can gain momentum from the double bottom and break the prolonged downtrend, coupled with an SRSI cross up, we could see a retest of the previous resistance levels at the red R1 and R2 lines, approximately $0.37 and $0.50.
Key Levels to Watch:
- Support: $0.23
- Resistance: $0.37 and $0.50
NVDA – WEEKLY CHART ANALYSIS
NVDA has experienced phenomenal growth over the past year, driven by the AI boom that has significantly boosted its price and investor sentiment. The future of AI continues to look promising, keeping the outlook bullish.
Back in May/June, NVDA found support at the yellow 21 EMA, near the 1.618 FIB extension levels, and has been on an uptrend ever since.
Currently, NVDA is forming a bull flag, signaling a potential breakout to the upside. Our target for this breakout is the FIB 2.72 extension level, roughly around $156.
The Stochastic RSI on the weekly chart shows signs of slowing down, but a rebound has formed a bull flag. This indicates we might find support here in the SRSI, potentially fueling further upward momentum.
Key Levels to Watch:
- Support: $102 at the yellow 21 EMA and $96 at the green S1 Line
- Resistance: Previous high at $140 and $156
HIGHER LEARNING
THE IMPORTANCE OF NOT FOLLOWING THE HERD IN INVESTMENTS
In the world of investments, going against the crowd can often lead to better outcomes. Here’s why it’s crucial not to follow the herd mentality:
What is Herd Mentality?Herd mentality in investing is when people follow what others are doing rather than making their own decisions. This often leads to buying high and selling low, which is the opposite of successful investing.
Why Avoid the Herd?
- Market Extremes: When everyone is buying, prices are often inflated. Conversely, when everyone is selling, prices may be undervalued.
- Emotional Decisions: Herd mentality is driven by emotions rather than rational analysis, leading to poor investment choices.
- Missed Opportunities: By following the crowd, you may miss out on unique opportunities that arise when others are fearful or overly optimistic.
Key Strategies:
- Do Your Own Research: Make decisions based on thorough analysis and understanding of the market.
- Stay Disciplined: Stick to your investment strategy, regardless of market hype or panic.
- Think Long-Term: Focus on long-term growth rather than short-term gains influenced by the herd.
By avoiding herd mentality, you can make more informed and potentially more profitable investment decisions. Stay rational, stay informed, and trust your own analysis.