AotC - Escalator to the moon

Oct 6

Welcome back!

This week we’ve seen a corrective pullback and just within the last few hours, some serious market strength has been displayed as we broke up through multiple trendlines, phaselines, EMAs, and other catalysts.

This is it. Remaining bears have no chance, as they’re savagely hunted in these market conditions. Uptober is real, and we’re just getting started. Lets jump right in, as we’ve now seen EXACTLY what we need to see for this final leg up to kick off. We’re on an escalator to the moon. All we have to do is get on.

Total Market Cap - 4H - click to view:

Pardon the messy chart, but I felt every drawing I have applied here is something everyone needs to see, so I left them. We’ve seen quite a large Bull Flag pullback form over the last few weeks, and we had a clean retest of the $1.8T area. We bounced off it HARD, and it sent us up through the next green S/R region. We will very likely retest this area with yet another mini bull-flag, then run up even harder. I expect something like I’ve drawn & circled in yellow. Overall, this entire pattern equates to a Cup & Handle as well, with a nice clean scoop. This is a great continuation pattern for an early-May level of bullishness to commence.

BTCUSD - 4H - click to view:

Here, a chart that looked bearish week before last now looks quite good. I think we have a little catalyst in play that may inhibit price for a while (labeled Catalyst 1 on chart), but not for long. It consists of the intersection of a rayline, as drawn from a previous high, with the 3rd touch of a trendline, as drawn from more recent local highs. Once this is breached (I’ve outlined in yellow how I believe it will happen), we’re headed to catalyst 2 which is a much more serious trendline. We may be in for a bit of a bigger pullback once that’s hit, but I think we’re definitely going to clear even that by the end of Oct.

ETHUSD - 4H - click to view:

For ETH, we have a nice Head & Shoulders forming, and I believe we’ll get a little pullback to the 50EMA, which will complete the pattern and propel us up through the neckline. Once that is complete, the next local catalyst (2) is an S/R zone between ATH and a more recent high. Again, maybe a more significant pullback forms once we hit this level, but I foresee it being broken by end of the month as well.

Alt Mkt Cap - 4H - click to view:

Here we have the Altcoin Market Cap - everything but BTC. We’ve had a strong dip here, but probably will make a swift recovery. I think the lower boundary (which is now being rejected) will hold, and I believe that we’ll be looking at both BTC and alt mkt moving up simultaneously; this is counter to many voices on CT right now, so it may not happen, but it is my personal feeling either way. I’ve got exposure to both sides, so no need to pick favorites. Select alts will be moving up regardless, such as RUNE & LUNA.

DeFi Index - 4H - click to view:

DeFi index is ripping right now; the complete opposite of the Altcoin Mkt Cap. We’re moving to all time highs, in fact, and I don’t think we’ll pause for long before these highs are broken. True DeFi products are aiming to completely replicate & replace banking products. If you sit and think about this for a moment…where this tech & these startups we’re investing in will actually be in 3-6 years… I hope you get the chills as I do. This chart will be absolutely vertical. Place your bets accordingly.

CRVUSD - 4H - click to view:

Speaking of DeFi, lets look at CRV. Here we’re still in the overall Triangle (or Wedge; whatever you want to call it), and we’re marching toward “the squeeze” day-by-day. I think the next catalyst will be this yellow circled area which is the 3rd touch on a trendline as drawn from local highs, as it intersects with the upper boundary of the Wedge itself. I’d be buying up to here, then swapping to something else, placing a re-buy order on what might be the final rejection of the bottom boundary.

AUDIOUSD - 4H - click to view:

AUDIO is looking good here as well. We’re in a nice Bull Flag with a triple-bottom in place. I’ll be buying on break-and-retest of EMAs (waiting for confirmed strength), then riding it up through the Flag’s upper boundary to new highs.

BATUSD - 4H - click to view:

BAT also looks excellent. We came back and re-tested the Channel this pair was trading in for many many months, then bounced hard and we’re now within the first Bull Flag after the confirmed trend-change / reversal. This is value and strength. I’m buying this here & now.

CQTUSD - 4H - click to view:

Beautiful beautiful Bull Flag printed here on CQT. This is a buy for sure, as decentralized distributed blockchain aggregators such as CQT and GRT will be very necessary in the future. GRT’s MC is $3.4B. CQT’s is $73M. You do the math.

RUNEUSD - 4H - click to view:

RUNE… This is one of the best setups in all of crypto right now. Inverse H&S, neckline broken and re-tested as new support in the form of a Bull Flag. Price within Bull Flag already impulsed up confirming trend-change, and now looking at a mini-flag re-testing the EMAs as new support. I believe this beauty will be going to new highs before the end of the year, with ease. You can see I bought the dip: note my two entries upon price re-testing that key S/R zone. RUNE is one of the best opportunities of our generation, I believe. These are the decentralized rails the future of finance will be built upon. And the first mover advantage will be very real with this one. Don’t sleep on it!

LUNAUSD - 4H - click to view:

I can’t do RUNE without doing LUNA. Now that the Col5 upgrade has successfully been pushed out, demand will be driven to UST in a much stronger way, and thus burning LUNA harder than ever before. I think we reach $100+ before EoY, and that’s conservative. Next catalyst is in the $60’s, then we’re headed straight for that upper trendline. If you’re not on board yet, you haven’t missed the boat. The beautiful big correction that has happened on this pair since the run at the start of 2021 has just set it up for something more grand.

MATICUSD - 4H - click to view:

MATIC looking much like RUNE here: Nice big inverse H&S, and it even could be argued that another one has formed, with current PA printing the right-shoulder of it. I’m live in a long here (where the P/L tool is), and looking for this overall descending trendline to be broken before end of October. I’ll likely recommend taking profits at 1.272 Fib Ext., but we can cross that bridge when we get there.

CONVUSD - 4H - click to view:

Convergence looked good on this 3rd touch, so I bought some. Small bag. Still looks like good value in this area, given the potential upside. Something to keep your eyes on anyway.

GRTUSD - 4H - click to view:

GRT looking exceptional here as well. Beautiful price action cleanly breaking out and re-testing the S/R zone around the $0.65 area. We impulsed up, are rejecting the underside of the next S/R ($0.75), and when we break that we’re headed to the upper boundary of the Bull Flag. From there, $1.32 is the next catalyst.

Reader Request - ATOMUSD - 4H - click to view:

ATOM. Cup & Handle, although the cup isn’t *as* pronounced as on my first chart (Total MC). Reference that for the truest form of the C&H pattern. This looks good though, and the “handle” is a Wedge pattern anyway, so just as a standalone pattern it’s good enough for me. Rejecting EMAs at the bottom of the Wedge now, and then that will likely be the floor as we move up and out of this structure. I’m picking some up here with a low leverage position.

Reader Request - FTMUSD - 4H - click to view:

FTM is a weird chart. I don’t know WHAT has happened since we broke up through this very obvious trendline, but for the most part, I guess it could be considered a Bull Flag. I like the “Impulse > Correction > Impulse” off the retest of the trendline… I don’t see why this won’t continue on along with the rest of the market. I would put FTM in the same box as MATIC, SOL, AVAX, and ETH, so watch those for correlation.

The opportunity here is not to be ignored.

We’re looking at a launchpad almost market-wide, setting the stage for the end of the year. However, don’t forget the level of blood that CAN occur in crypto, just because you have dollar signs in your eyes right now. Take advantage of what we have, here and now, to the fullest extent… but plan for the long haul. Especially if you got rekt in May’s dip. Rotate losers into WINNERS, and NOT visa versa. Double-down on what’s working, and don’t forget about Tax Loss Harvesting on your worst performers as we near Q4 and EoY.

Remember: If you only promise yourself that you’ll do what “successful” investors do once you’re already successful, that day will likely never come. “Once I have money, I’ll have a more diversified and premeditated approach and follow more in line with what the big accounts are doing”. ← If you have this mindset, it’s unlikely you’ll have the opportunity to even try.

Keep yourself protected, and keep an eye open for new opportunities!

Until next time…

Cryton Cap

Disclaimer:

Cryton Capital is not a registered investment advisor, legal advisor, tax advisor, or broker/dealer. All investment / financial opinions expressed in any-and-all posts on this page, including screenshots & captions, are from the personal research and experience of the owner, Mr. Chris Cooper, and are intended to be interpreted as educational material only. Although best efforts are made to ensure that all financial charts and commentary are as up-to-date as possible, there may be times where price moves beyond key levels before the chart can be posted. Alas, this is part of the fast-paced financial sector and cannot be avoided. Also, occasionally unintended errors and/or misprints may occur.

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Cryptowriter - AotC - Escalator to the moon