Transcription
[music] Hey folks, welcome to verified investing.com. My name is Gareth Soloway, chief market strategist here.
Now, in today's video, we're going to deep dive into crypto. About a week ago, I came out with videos talking about how the altcoins were going to run 20 to 25%. That has come to pass. And also I said Bitcoin would catch a bid potentially trading as high as the high 90s, close to 100,000. We got to about 95,000. We haven't quite gotten to that 100 yet, but I do think that is still a possibility before the bigger macro pattern, which is something I'm very concerned about over the next month or two, starts to play out to the downside.
So, let's dive right in here, folks, and take a look at how I was able to make this call. All right. So, first and foremost, when we looked about a week ago at this chart of Bitcoin, we were hovering right down here. And what we know is that this is a beautiful parallel. We have this area right through here, right? And that marked the highs. And then that high perfectly matched up with parallels to these lows right through here. Right? So again, essentially it gave us the confidence to say, okay, you're stuck within here. You're at support. And listen, if that breaks, okay, then the whole factor changes, but it wasn't breaking yet. And so again, one of the key tenants of technical analysis is to not jump the gun, right? In other words, you don't jump and say, "Oh, it's going to break down." When it hasn't broken down yet. You have to remain and let the chart be in charge. And by doing that, you actually become right much, much more than you otherwise would because you don't let emotion, you don't let your biases play into it. Right?
So ultimately, what we see here is very clear. We were holding support, which means you're on support, and ultimately that should mean price goes up, and that's exactly what it did. Five straight up days in a row, and then today a small pullback day. Now, my estimation right now is we probably have a little bit of sideways pullback, and then we can make one final push up to approximately the 97 to 100,000 level. Again, we kissed 95,000 here. Which, by the way, why did we hit that level? We'll just take a look right here. See these highs right through there. So if you look at that, right, this high and this high, that's why you hit resistance, right? So it's very methodical. It's very kind of the charts are in charge. And the faster we understand that, the better overall we will always do.
Now, if we look at this chart and we say, okay, well, why is 100,000 the target, or 97 to 100,000, we'll say? It's number one because you have this parallel up here, but also because there's another trend line here. Take a look at this, guys. This is very cool to see. And in fact, I'm going to do a little bit of a range here. And what we could see here is that we look at this and we strut it right through this area. Right? So essentially right through that vicinity. And you see what I'm doing here, right? So we go to these highs here, right? This kissed it right there. Then it broke up, then became support, support, support. This was your lowest point, right? Then you come up, then you come down, hammer, hammer, hammer, break. Try to break it. Bounces. And then you break through. And so what we see here when we extend that out is that ultimately, even if price pulls back a little bit here, if it gets one more bid, this would be your likely upside target. Notice you have the parallel, or I should say this flat or horizontal zone meeting this parallel up-sloping trend line that gives us our key target level. All right, so that's something to kind of behold there as we continue on.
Again, today we are seeing a little bit of a pullback, but great job again if you did happen to have any Bitcoin off this 87,000 level. And again, great run to almost 95,000.
Now, let's take a look at ETH. ETH is an interesting case here. Take a look. So, the first thing to note is I was calling for a rally because this is a bullish chart, right? Well, you might say, "Wow, it doesn't look very bullish." Well, when we talked about this, we were making a bull flag here. I'll talk about that in a second. But it was also a bullish flag off of key support. Look at right in here. And look at right in here. All right. So, what we know is when you hit resistance and pull back, and you hit it again and again and again and pull back, and eventually break out this trend line, which was resistance, once it's broken above it, it becomes technical support. So, you hammered it here, here, and here. And then this is where things got interesting for me, right? Because when you zoom in, and a lot of the altcoins had this pattern formation, you had a move up, right? A move up here, and then this inside bar bull flag, and that's a dead giveaway when you're right on support. So you're on support already. So you know you're sitting on the floor, and then you start to make this bullish consolidation. Price is likely to go up, and that's exactly what it did. And I'll show you some other charts on altcoins that had these exact same patterns, which were just an absolute thing of beauty.
All right, so that's where we are at this point, guys, on the chart of ETH. I want to just show you my target here. Let's get rid of this and clean up the chart just a little bit. But basically, what we're doing here is we want to take this area here, right? We drag that through, and we drag it up, and this gives us our max upside. And you guys see how this line has been very key. Let me just get rid of this here. I maybe I'm a little OCD, but nonetheless, I like to keep the charts clean. So you had support, support, and then it went away. Then you came back, support, then it had the big run, came back down, hit this level, came back down there, right? But again, the point being here is look at how this level was support. We then went up, we broke down, and then it became resistance, and then we got rejected. If we come back, that should be resistance. All right. So the idea is ETH could trade as high as around 3700. Once it gets there, I may contemplate a short.
Also, one more thing to note. Look at this. Look at this right here. See all these lows right here? One area, two, three, and four. Put a trend line right in there. Drag it across. Look at that. It coexists right with that 3700 level on ETH. Now, I want to be clear. It doesn't mean ETH can't go up beyond this level. It just is going to have to break through that level. And as I said at the beginning of the video, don't assume until it does. All right? Trust the charts to guide us, not our personal feelings and our emotions, which is what most people trade off of. All right? That's how you have a high win rate. You're never going to be perfect. I'm not. I have plenty of crappy calls, but the idea is is that I win many more times than I lose because I trust the charts to guide me versus my personal feelings or my thoughts, right? That's the key.
Okay, so let's go on. XRP, guys. This is just one of the greatest here. I mean, XRP, what a move. Look at this, folks. And this is one of the most beautiful charts because it really brings the principle of technical analysis home, which is you had a ton of support, right? Support, support, right through all of these levels, right? And that then was getting squeezed by this. And one of the key tenants of technical analysis, right, is that essentially it's, think about it like a, it's squeezing price. So here it's got a lot of width, right? And then it gets tighter and tighter and tighter and tighter, and then it just blows. Best example of this that I could give you guys would be an analogy, let's say with a toothpaste, a thing of toothpaste, right? Um, uh, you have a toothpaste and you're squeezing it, but the top's on and the pressure is building, and then all of a sudden you loosen that top and you squeeze, and then the top just flies off and toothpaste sprays out. I mean, that's essentially what goes on with a wedge pattern. Squeezing it more and more and more, tighter, tighter, tighter, tighter, tighter, tighter, right into the head, the head, and then it bursts forth. And that's again, exactly what we saw in XRP. And by the way, there's a lot of the altcoins that were looking like this in addition. Look at the pattern. What's this? Same thing as was on ETH. Inside bar bull flag, then you get the breakout, then the catapult to the upside. Very cool here as well.
I want to show you a couple others. We can look at Solana real quick here. Solana, same thing. Look at this. All right. This was another wedge pattern. You have this down-sloping trend line right here. Once it breaks out, it kind of chops and then it pushes up. Notice this isn't quite as, as dramatic of a head. It was kind of a slower grind here. So it wasn't as explosive to the upside, but it was still pretty impressive. Uh, going from 119 at this low all the way up to about 143. That's a great gain.
Look at Cardano here. Cardano, you have your same general thought process here. Look at this trend line. Look at this. Look at how perfect this trend line is, right? So you have this high, kissed it here, hit it here, hit it there, pulled back, and then broke out and made a big move. And again, I talked in that video I did about a week ago. I said most of these will move 20 to 25%. Most of them have gone about 30, 31%, 32%. But nonetheless, that was pretty darn close and a good call nonetheless. So just interesting to kind of see that.
Now we can go through a couple of these other ones in, in smart money stocks and ETFs. This is one of the ones. So again, folks, I do put my money where my mouth is, right? I have a service, smartmoney crypto, um, at verifiedinvesting.com, and we had picked up Avalanche. We had picked up Sooie. We had picked up, um, a bunch of these other ones. Polkadot, we had, um, as well as Solana, Bitcoin, etc. Um, and I've unloaded a majority. I only hold Solana and Bitcoin now after these moves because this kind of fulfilled the prophecy, right? Or or what the charts had guided me to say, 20 to 25%. Again, like I said, I was off. They went up about 30%. But so be it. I'd rather be conservative than say 50 and it only goes up 30. Right?
So the key here again, guys, is just great chart here. I love this chart of, um, of Sooie because again, if you look at this area right down here, right? So we have this low area right through there. You can see it kind of hammered right pivot point, pivot point right there. Came down into this level. Uh, you also have that same inside bar consolidation, up, inside bar, up, inside bar. Boom. Explosive move to the upside there.
All right, we can look at Polkadot. This was another good one here. I mean, look at this trend line. Epic trend line. You have the same wedge pattern breakout. I mean, look at this. This is just incredible. Look at how it was tightening. What I love about this one is it broke out, made another bull flag, and then continued on right there. But notice the wedge patterns. Wedge patterns are a key tenant of technical analysis. Again, think of that toothpaste, you know, the toothpaste that you're squeezing or whatever. It could be anything, a jar, uh, a tube of whatever, right? It could, doesn't have to be toothpaste. It could be anything. But the idea again, is is that wedge patterns condense price. When they're at the very lows of charts, the odds aren't perfect. Again, that's what odds are, right? Odds tell you that there's no 100%. But the odds heavily favor a move up when you're at the lows of a chart and you're squeezing price essentially when sentiment is so negative. And the comments on that video last week were like, "Oh, altcoins are dead. They're not going to move. You're crazy." The charts are the charts. The charts are the charts. It's really cool.
And and again, folks, for those of you, I know a lot of you guys really study this stuff now with me, and it's powerful. It changes your whole mindset into more of a, "I know nothing," right? And I will look at the chart and let the chart tell me versus what most people do is they're like, "Oh, but the, you know, this coin does has this use case," and they justify, justify, justify. Now, listen, long-term maybe that's good if you're holding for years or whatever. Um, although again, that hasn't worked out so well for some of these altcoins. But either way, the point is, when you're swing trading, the charts need to be in charge, and you have to listen to them. That's what I got to say.
All right, guys. Good stuff on crypto. Um, I'll keep you guys posted on the next big move. As always, I'll talk to you soon. Take care.