The Week Ahead for Crypto/Stonks - Oct 6, 2024
#stonks #crypto #bitcoin #altcoins #spy #dollar #dxy #vix #gold #gld #usoil #btcd #total3 #altcoins
Traders,
In lieu of a video for this weeks update, I have opted to post the charts. Prices are progressing as expected. No real surprises thus far. Let’s roll through our charts.
We start with the dollar. Retested the underside of our pink trendline. Later than expected but done now. Dollar should come back down through the rest of October.
Technicals are unreliable on the VIX as it is heavily manipulated by the MMs, but it is pressing up on some resistance right now. If that resistance is able to keep us down then, along with the dollar being down, this should mean stocks up. Crypto should follow.
Before we look at crypto, let’s take a look at gold and oil to see what they are signaling.
My indicator has given a sell signal on gold twice. This is warning us that we can expect a pullback soon on gold. This in turn could indicate money moving from safe assets to risk on.
Oil has been moving up temporarily but is moving into some large order block resistance. Once hit, we can expect a pull back here as well. With oil on the decline, it would free up a lot of elbow room for businesses to continue growth processes. More profit can be realized due to cheaper transportation costs. This is a lagging indicator for businesses but market traders will eat it up immediately.
Everything is looking locked and loaded for U.S. stocks. Dollar down. VIX down. Gold due for a pull back. Oil dropping and due for another pull back. All of these things should mean SPY to continue it’s rocket launch. And, in fact, a look at the charts tells us this is so. The SPY has broken the neckline of a weekly cup and handle pattern (also, a triple-top), has retested this, and is ready to continue up.
Now onto crypto:
The altcoin chart is looking solid. We’ve broken a long held triangle top and have patently retested. Now, the move looks to continue upward.
And Bitcoin?
You guys know my target during this uptrend has been 68k BTC which is the top of our channel and that large order block with mostly sell orders. This last sudden dip cleaned out quite a few longs. Now, it is time to go after those shorts. You will start to see a lot of shorts liquidated around 68k (the top of our channel). This will only add fuel to the bullish fire. I think we'll go right through that liquidity order block and clean out all remaining shorts. Supply is low on centralized exchanges so, expect big movement to come!
A couple of things to watch before we get there though.
First, we have to beat our 200 DMA. This is absolutely critical! If bulls can't handle this then it's game over for the time being and I think we'll drop all the way to 48k.
Secondly, we have to beat the top of our channel. That currently sits at around 68k.
If we beat those two major resistance points, it's game on. Shorts will be in serious trouble and it will be longs dominating the market!
Stew