GM PRO DOers!
Not sure if you're aware, but we are SO BACK!
Macro is turning in our favour. Tech stocks are pushing all-time highs. And crypto is on a tear so far in Q4, 2023.
Just check this Bitcoin chart out. From $25k to $42k in just 90 days. 🤯
The signals were all there and for those of you reading the Web3 Academy PRO reports, you were warned of this back on October 19th, in “The Stars Are Aligning For Markets PRO Report”.
For those in the private PRO discord channels, you were warned a week earlier:
Congrats to all of you who took advantage of this alpha.
If you didn’t get in before the surge, no worries. There’s plenty of upside left across the crypto industry.
Today’s bonus PRO report is going to shed some light on this.
As we move out of the 22-23 bear market, there are some massive, long-term chart patterns forming which are signalling some big moves across various assets in this space.
I’m going to share 5 of these charts with you. As ever, Technical Analysis and charting is not a perfect science. It’s a tool (one of many) that you can use to make investment decisions.
Chart patterns are useful, but you need fundamentals and other macro and external factors to come together with it. I think right now we have that.
Just like the “Stars Are Aligning” report, I think the assets of the charts I’m about to share have the fundamentals as well as the tail winds of macro and the broader early crypto cycle to support it.
Whether you trade, invest long-term or just like to keep your finger on the pulse for what’s happening next, these charts should give you some solid insight into what’s to come.
Here’s what we are covering:
$ETH
$ETH/BTC Ratio
$COIN
$IMX
Altcoin Market Cap
Let’s dive into it! For each, we’ll start with a chart and then explain its significance below. If you don’t understand charts, no worries, we keep it real simple here at Web3 Academy!
1. Is Ethereum About To Have Its Moment?
Ethereum has been lagging behind the crypto industry and specifically other “majors” like Bitcoin and Solana.
But Ethereum will no doubt have its time too.
We covered Ethereum's monthly descending channel (the purple highlighted area on the chart above) breakout earlier this month and assumed it would shoot above $2k if it broke.
That happened.
Ethereum had since hit resistance at $2140 multiple times (the bottom blue line), after doing so back in April as well.
We're now breaking above this heavy resistance level (pointing arrow) and if $ETH finds some momentum, we could sail comfortably toward $3k.
When will it happen? I’m guessing that leading up to or after the news of the Spot Bitcoin ETF approval.
The moment that it gets approved, it’s all eyes on the Spot $ETH ETF. I think we begin to see a big rotation from Bitcoin into $ETH at that point (if not sooner).
Of course, none of this is a certainty, it’s just one man's opinion and a chart. Speaking of that, here’s the $BTC/$ETH chart…
2. A 7-Year Breakout Is Brewing 👀
This chart is wild. A 7-year wedge pattern (the blue lines) between $ETH/$BTC.
Most people have been eyeing the range (green area) that $ETH/$BTC has been in since early 2021, but when we zoom out and look at the bigger picture, it appears there is something much bigger happening here.
This massive wedge is coming to an end in the next few months and the implications could be big depending on which way it breaks.
Again, TA is never a perfect science, but probabilities suggest that whichever way this chart breaks, the length of the breakout is generally the length of the vertical line of the wedge.
That looks like this on either side…
If it breaks to the upside, Ethereum eventually flips Bitcoin. Note that the timeframes on these breakout lines are not accurate & this could take years to play out.
If it breaks to the downside, Bitcoin dominance goes through the roof (or maybe it’s the end of Ethereum?).
These are simply stories that I’ve made up, none of this factual, but this is what you need to do to determine the probabilities of where to invest your capital.
My bet, as many of you know, is on $ETH to break to the upside (the chart above would suggest this as well). But let’s see what happens!
All we know for sure is that big things are coming our way. 🌊
3. $COIN Is On A Moon Mission!
Coinbase just broke through the neckline of a 1.5-year inverse head and shoulders pattern.
We wrote extensively about this and $COIN as an investment here in case you want to learn more about what’s happening at a fundamental level.
But on a technical level, $COIN has 0 resistance until $200. It could rip there very quickly.
Ironically, according to technicals, the breakout of a head and shoulders pattern should lead $COIN to $410, the price Coinbase reached during its IPO.
All-time highs are coming soon for $COIN!
Congrats to those who got in on $COIN <$60 when we wrote about it back in May. What a steal. 🙂
4. Web3 Gaming Is FINALLY Here
A similar chart pattern is forming for $IMX, my favorite investment outside the majors ($ETH & $SOL).
We also wrote extensively about $IMX back in August, as I believe it has one of the best products and economics in crypto.
Those economics will improve by an order of magnitude when EIP 4844 goes live next year, which will slash Immutable’s main expense; gas fees.
TA is rarely useful in small cap tokens like this, however at a $1.7 billion market cap, this chart is interesting nonetheless.
Especially when you consider the headwinds coming for $IMX; Illuvium launching on Epic Games and the 200+ games in the pipeline for 2024.
One thing to consider however is that $IMX is already at all-time highs in terms of market cap. Because of token unlocks, the price and the market cap charts look nothing alike.
That said, this is one of the main protocols and companies that I am extremely excited about for this cycle.
One of the best teams in the space, combined with one of the best technologies and potential for mass adoption any day!
But if you’re looking to go into the weeds of web3 gaming, we released a newsletter on Monday covering the top 8 gaming plays you should have on your radar for 2024.
5. Altcoin Season Came Early?
The chart above is the crypto market cap excluding $BTC and $ETH, widely understood as the “altcoin market cap”.
It recently broke through a 1.5-year resistance level, which could be considered the bear market level. It has since tested that resistance and could be turning it into support (not confirmed yet).
Historically, crypto has moved in very similar cycles lasting around 4 years, with a similar pattern of $BTC breaks, then majors – aka $ETH – and then everything else.
When we look at the last cycle, it took more than 2 years for the altcoin market cap to fully break out of this same pattern.
To be clear, this breakout hasn’t happened yet, but if it does confirm shortly, this could signify big things to come for the rest of the crypto space.
Bitcoin dominance would likely hit new lows (which I expect) and hopefully, it would mean that we breed numerous legitimate “alts” during this cycle.
Let’s see how it all plays out, but a very interesting chart to watch nonetheless!
Key Takeaways 🧵
After a long bear market, the bull market is finally here.
I believe we are still in the early stages of what appears to be a very big bull cycle ahead of us. We still have a lot of work to do to get out of the weeds, but that starts with the majors: $BTC and $ETH.
These are the important, institutional-level, assets that we need to perform well to see big capital flow into the space.
The early alt-coin boom is great, but outside the niche group of crypto natives, most people don’t have a clue what’s going on there.
Once $BTC and $ETH reach and surpass all-time-highs that's when the real bull market will be back on and we will see millions of new (or old) people flood back into the space.
This is where things get crazy!
As usual, we will keep you on the pulse as things continue to unfold. At the moment, we still have a long way to go so the best strategy is to keep accumulating and holding on.
Good luck out there!
Thanks for reading. And remember, you're strong, you’re powerful, you’re alpha! ❤️
How'd you feel about our read today?
ABOUT THE AUTHOR
Kyle Reidhead
Founder of Web3 Academy and Impact3
Find him on Twitter
PRO ACTION STEPS
CLAIM PRO NFT
As a PRO, you’re entitled to a PRO or FOUNDERS Pass (NFT), depending on your subscription.
This Pass will grant you access to our token-gated Discord and to other perks such as early access to various protocols and discounts to IRL and online events.
To grab your Pass, simply click the button below, connect your wallet to your Paragraph account and grab your Pass.
TAKE WEB3 INVESTING MASTERCLASS
Learn the best practices to allocate capital and successfully invest in crypto and web3 with our Web3 Investing Masterclass.
This invaluable resource costs $249. But as a PRO, you get it at a 50% discount.
And as a Founding member, you get it for FREE! 🤯
All you need to do is grab your PRO/Founders Pass (see above ☝) and connect your Pass using the link below. 👇
JOIN OUR DISCORD
As a PRO or FOUNDERS Pass holder, you have exclusive access to our token-gated Discord channels dedicated to PRO members!
Upon claiming your Pass, head to Discord and connect your Pass in the #start-here channel (WEB3 ACADEMY PRO category) to unlock access to PRO-only channels!
Disclaimer: This article is for informational purposes only and not financial advice. Conduct your own research and consult a financial advisor before making investment decisions or taking any action based on the content.
