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Third Time's the Charm

RSI Divergence in ADA

Our penny coin strategy continues to work, since it was first mentioned here just a few days ago, with a new possible entry showing itself. The primary penny coin I have been focusing has been ADA due to it's strong fundamentals and it's strong correlation with BTC continues as we near the halving showing great potnential to grow alongside. You can learn more about ADA on the Coin of the Day page, as it was featured just a few days ago.

ADA is showing a third formation of a bullish RSI divergence in the making here, mirroring closely the last two patterns. If you'll notice, each of the last two trendlines on the price have an origin that is broken immediately after by a wick, followed by a small rally, and then continuing the divergent price action. This has happened once again in this most recent occurance. It is however unlikely we see the full formation for a third time, markets rarely do act so organized and predictable.

All this coming amidst a very unhealthy global economy, financially speaking, and the halving is just 4 days away. BTC was also the first asset to reach pre-march levels, which it is currently attpemting to regain, as mentioned below. The perfect storm is arising in BTC and it is going to bring with it the alts, and when it does, you want to be well positioned.

Hyperinflation and BTC

As reported just yesterday morning, hyperinflation of the USD and the Euro has already begun. The levels of money prinitng occuring globally entered new territory about a month and a half ago and never left, with the word trillions being used as if it means nothing. One trillion dollars is the equivalent of creating one dollar per second for the next 31,709 years and 9.5 months. Read that twice please.

The US is indebted some 24 odd trillion USD, and the treasury just asked for another 2.999 trillion in relief from the fed. Don't try and do the math, you may break your computer. The short answer: this debt will never, and was never going to be paid back. It is a mathematical certainity that the US has two options, default or inflate it away.

For those unfamiliar, inflation is caused by an increase in the money supply, i.e. printing money, a task the fed is happy to do. When that increase occurs it dilutes the value of the currency already in circulation, the cash in your bank account.

This has always been the end game for the insurmountable debt accrued by the US since the beggining of the nation in 1776. The federal reserve created itself to ensure unlimited liquidity was available, and as it leaks into the economy, it is spilling over into crypto.

Here you can see that BTC has a strong daily uptrend, a positive sign going into the halving event. There has been much more media buzz this year than I have ever seen in my previous 2 halvings. Almost every day I receive two articles from crypto websites with some catchy headline and some new statictic about the halving. BTC is also up ~%140 in the last 53 dyas.

BTC Lower Timeframe


The lines seem a bit cleaner as we drop down into the 15 minute timeframe, which is always a good sign. Higher timeframes are useful for denoting important price levels but the lower time frames indicate if the price is respecting it by using them as support and resistance.

There seems to be the beggining of a break out forming in BTC, as it tries to reclaim the levels of March for good. A solid close above this 3/7 high would be a very good sign of a rally through the impending fibonacci level direcly above. Price being rejected a few days prior and already retrying its luck is a good sign.