Morpheus Crypto Report – November 21, 2022

Below is the full, archived version of Morpheus Crypto Report that was sent to paid subscribers.

If you enjoy what you see, simply subscribe to receive real-time access to your live crypto trader room, crypto trading analysis, crypto signals, and crypto portfolio. Please drop us any questions or comments at the bottom of the post.

Crypto Portfolio

(tracks and updates all crypto signals sent to members)

Watchlist, Closed Positions, Open Positions

If you’re new to Morpheus Crypto, press here to see standard model portfolio notes.

$BTC Bottom? Potential undercut and double bottom at the 2-year low

In last week’s report, we said that recent, record high volume in Bitcoin ($BTC) could mark a significant, longer-term bottom.

That longer-term analysis still remains valid, but remember our shorter-term bias was slightly negative. Here’s what we said:

“Given the plethora of overhead supply at higher prices, current resistance holds more weight than the single day of support. As such, odds now favor sideways to slightly lower prices until $BTC gets back above the 17,600 level. However, a period of sideways chop seems more likely than substantially lower prices.”

As anticipated, $BTC failed to reclaim the 17,600 resistance level and indeed edged lower for the week.

No biggie, as we remained on the sidelines due to the previous week’s market Sell signal:

So far, $BTC has formed a higher low at the 15,800 level. If $BTC breaks below that prior swing low, then expect a test of the 2-year low at 15,600.

If $BTC tests the 15,600 low this week, pay close attention to the volume pattern and price action.

One possible scenario is that $BTC could undercut its 2-year low, then quickly reverse back above that level on high volume.

IF that happens, then we will be looking for a potential new buy signal of a bullish reversal day—but that’s just one possible scenario. Anything can happen.

With Bitcoin hanging out near its low, most of the altcoin market has also been quiet. Many charts now have a similar pattern of chop and lower volatility recently.

As such, it’s a great time for us to break away from our usual format of chart analysis to discuss the “big picture” of what’s happening in crypto now.

FTX was a problem—not DeFi

Unless you have completely ignored all news over the past 2 weeks, you are likely aware that FTX, formerly the second largest centralized crypto exchange, recently filed for bankruptcy. In case you missed it, press here for a summary of the wild FTX story.

News of the recent FTX meltdown has a lot of crypto investors running scared right now. Considering the billions of dollars many crypto investors lost with this year’s TerraLuna and 3AC collapses, that fear is understandable.

Unfortunately, FTX became the latest example of the crypto space being hurt by the actions of a few bad actors—but not the technology.

Crypto projects that are truly decentralized (the original goal of crypto) and fully run by computer code have had zero issues.

Bitcoin itself, for example, has once again stood solid through all three major crypto disasters (which, again, were originally flawed by design).

Decentralized Finance (DeFi), which relies 100% on computer code for risk management, has also stood tall throughout this mess.

FTX (a centralized exchange) failed because it was regulated by governments—not by computer code.

Code is law. DeFi did NOT when FTX did because it is regulated by code.

Code is regulation, which is why:

• $AAVE is fine
• $UNI is fine
• $MKR is fine
• $COMP is fine
• $YFI is fine
• $GMX is fine
• $SNX is fine

DeFi protocols like $MKR $AAVE and $COMP have performed exactly as designed… which is precisely to prevent liquidity issues (FTX). DeFi is doing just fine, and will continue to do so.

What was the CEO of FTX lobbying against?  DeFi. 

What could have prevented the FTX meltdown?  DeFi. 

Which exchanges already publish real-time proof-of-reserves?  DeFi. 

Yet, despite this, proven DeFi is likely to become the target of regulators.

What can I do to protect my crypto assets?

At Morpheus, we have only ever mentioned Kraken and KuCoin as our preferred centralized crypto exchanges (CEX) for crypto swing trading.

Although FTX had lots of hype, we’ve always preferred more time-tested CEXs that focus on active traders, as well as internal/external security.

We prefer Kraken as a fiat on-ramp/off-ramp, and KuCoin for its wide range of available altcoins and low fees.

After the FTX news broke, KuCoin even took the proactive, transparent step of showing their crypto holdings to the public. Kraken put out a similar statement.

NEVERTHELESS, every crypto trader should ALSO maintain a personal crypto wallet.

Keeping SOME funds on a centralized exchange makes sense for ease of active trading, low fees, ability to set stops, ease of use, etc.

However, as we always say in the chatroom, it’s best to store your crypto assets on a hot or cold crypto wallet. of your own.

For long-term investing, cold storage such as a Ledger or Trezor device is the way to go.

TIP: Buy your crypto wallet directly from the manufacturer, to avoid any (minimal, but possible) chance of third-party hacking before your purchase.

Again, consider keeping only the amount you’re actively trading on any CEX.

When crypto assets are stored at a centralized exchange, the exchange acts as a custodian for your crypto. This works fine…until “disaster” strikes one day.

So, remember this: NOT YOUR KEYS, NOT YOUR CRYPTO.

Drop us a line in the chatroom if you have any questions or would like more insight on wallets and exchanges. We work hard to keep members safe through continual crypto trader education.

Morpheus Crypto Portfolio Update

We listed 2 new swing trade setups for potential buy entry last Friday ($LTC and $SCRT). However, neither crypto triggered our buy stop price for entry. As such, the Morpheus Crypto portfolio remained 100% cash over the past week.

Our patience once again paid off, as virtually any new trade entry last week would likely be showing a loss right now.

If you’re new to our service, it’s important to understand that our “big picture” swing trading strategy is to step on the gas pedal when market conditions are bullish, but stay out of harm’s way (in cash) when the odds are against us.

Unlike other services, we do not just give you swing trade picks for the sake of excitement and action. Rather, we provide you with an objective crypto swing trading system designed to properly manage risk in all market conditions.

We are continually scanning the markets for ideal trade setups, so don’t worry about missing opportunities; we will alert you when it’s time to jump back in the market.

In the meantime, the current environment is a fantastic time to focus on mastering your discipline and continually improving your trading plan.

But right now, your sole focus right should be on capital preservation. Doing so enables you to protect the big gains your portfolio generated from this year’s big winning trades.

Simply knowing when to be OUT of the market is an extremely valuable part of your service (as is knowing when it’s time to get back in).

Growing Pains

It’s certainly been a challenging year in crypto, but the long-term outlook of crypto remains stellar!

The young, booming industry of crypto is just suffering growing pains.

The crypto industry exploded so quickly that it needs time to take out the trash that accumulated along the way. That’s what happening now.

The internet as we know it today grew out of the dot com boom-bust cycle of the 90s.

In our view, the burgeoning industry of crypto is likely to follow a similar course.

Lots of hard lessons are being learned now, but they will only stand to strengthen the future outlook of the crypto space.

Regulation of some degree will eventually come, which is realistically necessary for crypto assets to eventually gain mainstream acceptance.

Crypto may be stuck in a slow grind lower in the near-term—at least until there’s an impetus for the bulls to return.

Regardless, nothing changed for Morpheus.

We remain HUGELY bullish on Crypto, and fully anticipate massive future growth in the industry. We just need to get through the growing pains of revolutionary technologies.

Regardless of how bumpy the road ever gets in cryptoland, Morpheus will be here beside you with continued swing trade picks, educational technical analysis, and ongoing crypto updates.

Remember to trade what you see, not what you think!

SIGN UP NOW to start receiving your winning Morpheus crypto trade signals, including a crypto portfolio you can easily follow. Morpheus Crypto PRO includes live crypto trader room for daily, real-time trade ideas and powerful crypto trading education.

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The post Morpheus Crypto Report – Will $BTC Form a Double Bottom as FTX Blows Up? appeared first on Swing Trading Blog | Trading Strategy Articles | Trading Tips.

Morpheus Crypto Report – May 16, 2022

Below is the full, archived version of Morpheus Crypto Report that was sent to subscribers on April 18, 2022.

If you enjoy what you see, simply subscribe to receive real-time access to your live crypto trader room, crypto trading analysis, crypto signals, and crypto portfolio.

Please drop us any questions or comments at the bottom of the post–we’d love to hear from you!

Crypto Portfolio

(tracks and updates all crypto signals sent to members)

New crypto signals sent to members since the previous week are in yellow above.

Crypto relief rally after bouncing off major support levels

In last week’s report, we showed you that Bitcoin ($BTC) was coming into major support of its prior low from June of 2021.

As anticipated, Bitcoin indeed undercut that level around 28,800, then reversed to close the week above it:

Ethereum (($ETH) formed a similar pattern last week, as it reversed higher after nearing its June 2021 low:

The weekly charts of $BTC and $ETH above are similar, but notice that $ETH never actually touched its June low (whereas $BTC undercut its low).

This means $ETH has been showing slight relative strength to $BTC on the weekly time frame.

Just a countertrend bounce–for now

Strong markets don’t go straight up forever, nor do weak markets go straight down forever.

Right now, we are merely seeing a relief rally from short-term oversold conditions in the crypto market.

The support levels from June of 2021 gave Bitcoin and Ethereum a great excuse to bounce last week.

However, both $BTC and $ETH must now overcome a lot of overhead supply and technical resistance in order to move much higher in the near-term.

Specifically, the purple horizontal line on the charts above marks the next resistance levels to monitor if $BTC and $ETH break out above their highs of the current bounce.

For both $BTC and $ETH, it is notable that resistance is formed by convergence of prior lows and the 20-day exponential moving averages (not shown on the weekly charts).

For $BTC, watch resistance around 33,000.

For $ETH, the next significant resistance is the 2,400 area.

We are prepared to take profits and/or trail tight stops on any long positions as we near those resistance levels (we can always re-enter if the price busts through).

Where’s the volume?

Will Bitcoin and Ethereum maintain bullish momentum and eventually reclaim their 20-day EMAs?

The answer largely depends on VOLUME.

When the altcoin market reversed and began rallying last Friday, we noticed that most leading altcoins were rallying on declining volume–the opposite of what we like to see.

The current rally attempt would be more convincing IF it was backed by accumulation volume.

However, recent price and volume patterns suggest the current bounce is more the result of a temporary lull in selling pressure, rather than an abundance of new buyers.

Increasing volume is necessary on the up days in order for the bulls to regain control.

As such, we are being extra cautious with new trade entries right now—at least until we start seeing higher volume accompanying advances.

Morpheus “hit and run” trading strategy leads to a +2.3% weekly portfolio gain

The Morpheus Crypto portfolio remained 100% cash as the market sold off last week.

Then, we bought Maker ($MKR) after we noticed funds rotating into $DAI stablecoin due to the $UST/ $LUNA fiasco. By way of design, money flowing into $DAI is automatically bullish for $MKR.

After the initial spike in $MKR, we waited for a substantial pullback and then entered with an ideal, low-risk entry point.

We then scaled out the next day and quickly locked in an average gain of +44% on a ONE-day hold, as Bitcoin started reversing off its low.

The hourly chart of $MKR below shows our entry and exit points for this “hit and run” trade:

After closing $MKR, we waited for their first pullback after Friday’s rally to patiently and carefully target our next big winner.

That’s when we bought Decentraland ($MANA) due to its high relative strength and massive volume.

On the daily chart below, notice that $MANA registered its highest volume day of the year.

This was quite a contrast to most of the altcoin market, which rallied on declining volume:

$MANA immediately began moving higher after our pullback entry, and is currently showing a gain of +20% since our May 13 buy entry in your Morpheus Crypto portfolio.

We also bought $ETH on a slight pullback the next day, and is currently trading near our entry point (2,040).

Finally, we took a low-risk shot at $LUNA with a TINY position (1% of portfolio0 when it began reversing after a plan was announced to re-peg $UST back to the dollar.

The “plan” failed and $LUNA (surprisingly) went to zero.

We knew this was a risk at the time of entry, which is why we carefully limited our maximum risk to just 1% of the portfolio. Proper position sizing is a great way to control risk!

As always, we are continually scanning hundreds of charts to look for the next winning trade opportunity.

However, ideal, low risk buy setups are few and far between right now.

New crypto swing trade setups will eventually emerge If overall market price action remains solid, but Bitcoin needs more time to prove the bounce was not just a one or two-day event.

If you have been closely mirroring our entries and position sizing in the Morpheus Crypto portfolio lately, you should be quite pleased!

We kept you out of trouble by sitting in cash while the market was getting whacked.

Then, we selectively entered a few “hit and run” trade setups for quick gains on the bounces–such as your +44% gain in $MKR and +20% in $MANA (currently).

Be patient and carefully wait for the best, lowest risk setups to fall in your lap, rather than trying to force the market to generate more trade ideas with lower odds of success.

There are currently no new buy setups on our watch ist, but we will send you a trade alert with details as we enter new trades in the portfolio.

SIGN UP NOW to start receiving your winning Morpheus crypto trade signals, including a crypto portfolio you can easily follow. Morpheus Crypto PRO includes live crypto trader room for daily, real-time trade ideas and powerful crypto trading education.

The post Morpheus Crypto Report – +44% Gain on a Quick Breakout Trade in $MKR appeared first on Swing Trading Blog | Trading Strategy Articles | Trading Tips.

Below is the full, archived version of Morpheus Crypto Report that was sent to subscribers on April 18, 2022.

If you enjoy what you see, simply subscribe to receive real-time access to your live crypto trader room, crypto trading analysis, crypto signals, and crypto portfolio.

Please drop us any questions or comments at the bottom of the post–we’d love to hear from you!

Crypto Portfolio

(tracks and updates all crypto signals sent to members)

New crypto signals sent to members since the previous week are in yellow above.

Bitcoin slides to test 2022 low

This week’s Morpheus Crypto Report is in video format.

Check out the video below to discover where $BTC may soon find major support on the weekly chart:

Watchlist

As explained near the end of the video, we have reset our relative strength watchlist and are now in scanning mode to look for the next leaders when the buyers return.

For now, we remain 100% cash and waiting for the market to find support.

SIGN UP NOW to start receiving your winning Morpheus crypto trade signals, including a crypto portfolio you can easily follow. Morpheus Crypto PRO includes live crypto trader room for daily, real-time trade ideas and powerful crypto trading education.

The post Morpheus Crypto Report – Bitcoin Falls to Key Weekly Support Level appeared first on Swing Trading Blog | Trading Strategy Articles | Trading Tips.

Morpheus Crypto Report – May 2, 2022

Below is the full, archived version of Morpheus Crypto Report that was sent to subscribers on April 18, 2022.

If you enjoy what you see, simply subscribe to receive real-time access to your live crypto trader room, crypto trading analysis, crypto signals, and crypto portfolio.

Please drop us any questions or comments at the bottom of the post–we’d love to hear from you!

Crypto Portfolio

(tracks and updates all crypto signals sent to members)

New crypto signals sent to members since the previous week are in yellow above.

Waiting for trend resolution in Bitcoin

In last week’s report, we showed you how Bitcoin ($BTC) formed a second bullish reversal bar after undercutting support of its previous reversal from April 18.

That pattern technically positioned $BTC for short-term gains, but Bitcoin swiftly stalled after running into resistance of its 20-day exponential moving average on April 26.

$BTC then sold off sharply, formed a big red candle and sliced back down below pivotal support of the April 18 low.

However, $BTC quickly found support at its uptrend line from the January 2022 low:

Bitcoin Tug of War

Looking at the daily chart of $BTC above, it’s easy to understand why recent price action has been choppy and like a roller coaster from one day to the next.

The main bullish case is that $BTC remains above support of its uptrend line (yellow line) from the January 2022 low.

It is also bullish that Bitcoin has started showing increasing relative strength to the US stock market.

For example, the Nasdaq closed at its lowest level of 2022 last week, and is currently showing a year-to-date loss of -21%.

Yet, $BTC is still holding above support of its 4-month uptrend line–though it could have easily gotten wrecked alongside the Nasdaq last week.

Nevertheless, Bitcoin must still contend with overhead resistance of its 10, 20, and 50-day moving averages in the short-term.

In the coming week, monitor the following support and resistance levels that could finaly lead $BTC out of its choppy, indecisive range (in either direction):

Support:

37,400 area (April 30 low)

A breakdown below this level would also cause $BTC to break down below its daily uptrend line.

Resistance:

40,000 (20-day exponential moving average and psychological “round number” resistance)

If Bitcoin gets above the 40,000 level and holds, then look for next key resistance at:

42,000 (50-day moving average)

Morpheus Crypto portfolio scoring big gains–despite market weakness

Although $BTC merely drifted sideways to slightly lower last week, most altcoins showed relative weakness and plunged sharply lower.

Many altcoins, even former market leaders such as Solana ($SOL) and Avalanche ($AVAX), have fallen to or are nearing their 52-week lows.

However, despite broad-based altcoin weakness, your Morpheus Crypto portfolio has been bagging some nice gains lately!

We have carefully avoided overtrading in this choppy market, which has been crucial in avoiding losses.

We also have been utilizing a quick “hit and run” approach to taking gains on new trade entries.

In last week’s report, we closed out a gain of +54% on $GMT (only a 3-day hold), +19% in $RUNE, and +12% in $OGN.

On April 27, we locked in a quick gain of +11% on just a 1-day hold of $ENS.

Then, we re-entered $ENS at a lower price just two days later.

Since then, $ENS has shown clear leadership as a top performer in the altcoin market.

On the daily chart below, notice that $ENS has broken out above major horizontal price resistance.

Most importantly, note the huge volume surge that accompanied the recent breakout:

Currently, our portfolio re-entry in $ENS is showing a gain of +29%.

One of the reasons we are quite bullish on $ENS now is not only the bullish chart pattern.

We also really like the actual product Ethereum Name Services ($ENS).

These days, anyone can register an Ethereum domain name for $5 per year.

Ethereum domain names are NFTs on the blockchain that correspond to your personal Ethereum wallet address.

If someone wants to send crypto to your Ethereum wallet, the sender only needs your Ethereum name (such as “morpheus.eth”) to send crypto to that wallet, rather than the full address.

It’s basically the blockchain version of registering a dot com domain name back in the early days.

As rare and valuable ENS names get sold for big money (especially to companies), the value of the token goes up.

Remember how much money was made in the early days when people bought website domain names of big companies that later sold them for millions of dollars.

Same concept here.

There’s a lot of buzz about ENS on social media as well, and we believe in the fundamentals of this project longer term.

Do your own research, but we believe $ENS has the long-term capability to be a top 10 crypto.

Nevertheless, we will continue to swing trade $ENS with a shorter-term focus due to overall market conditions.

However, this may be a crypto that we’re able to trade in and out of–just as this is our second entry after making 11% on the first entry.

Watchlist

After scanning hundreds of charts, we are not seeing many low-risk swing trade setups for our watchlist right now.

As previously mentioned, heavy selling on April 30 caused technical damage to many chart patterns.

Nevertheless, we are already positioned in the top play in the market now ($ENS).

$HBB also continues to show high relative strength and is consolidating after its recent breakout.

We just bought $RUNE in anticipation of a short-term pop, but will look to cut the loss early if today’s initial bullish momentum does not follow through quickly.

As always, we continue scanning the market for the best crypto swing trades and will send a trade alert with details of any new trade entries or position updates.

SIGN UP NOW to start receiving your winning Morpheus crypto trade signals, including a crypto portfolio you can easily follow. Morpheus Crypto PRO includes live crypto trader room for daily, real-time trade ideas and powerful crypto trading education.

The post Morpheus Crypto Report – Winning Crypto Trades Despite Bitcoin Tug of War appeared first on Swing Trading Blog | Trading Strategy Articles | Trading Tips.

Morpheus Crypto Report – April 25, 2022

Below is the full, archived version of Morpheus Crypto Report that was sent to subscribers on April 18, 2022.

If you enjoy what you see, simply subscribe to receive real-time access to your live crypto trader room, crypto trading analysis, crypto signals, and crypto portfolio.

Please drop us any questions or comments at the bottom of the post–we’d love to hear from you!

Crypto Portfolio

(tracks and updates all crypto signals sent to members)

New crypto signals sent to members since the previous week are in yellow above.

Bullish Bitcoin reversal at key support level

In our previous report, we showed you that Bitcoin ($BTC) formed a bullish reversal candle after undercutting support and rallying back above “psychological resistance” at the 40,000 level on April 18.

That bullish reversal day triggered a new, short-term buy signal, and prompted us to buy $BTC in the Morpheus Crypto portfolio that day.

However, we also warned that $BTC could still pullback after rallying into key resistance of its 50-day moving average around 42,100–and that’s exactly what happened!

$BTC initially blasted through its 50-day MA on April 21, but failed to hold the breakout for more than a few hours before selling pressure caused the price to slide lower.

The failed breakout attempt at the 50-day MA attracted further selling, which weighed heavily on Bitcoin and most altcoins for four more days.

Bearish price action began intensifying on April 25, initially causing $BTC to plunge below the low of its April 18 reversal day.

However, the bulls stepped in, reversed the bearish momentum, and pushed Bitcoin back above that pivotal 40,000 level again.

As such, $BTC formed another bullish reversal day on April 25; exactly one week after the formation of the previous one.

The April 25 reversal day, confirmed by higher volume, technically shifts the short-term balance of power back to the bulls.

Nevertheless, a lot of overhead supply has been created in the wake of the recent sell-off sparked by the bearish reversal at the 50-day MA.

It’s also notable that Bitcoin continues loosely moving in sync with the US stock market–and that’s not good considering the current technical state of US stocks.

It’s unlikely the $BTC reversal bar would have formed on April 25 if the Nasdaq would have failed to bounce that day.

Furthermore, the April 25 bullish reversal day may be unable to follow through IF recent, heavy selling pressure in the Nasdaq remains in the coming days.

As such, we remain quite cautious regarding new potential trade entries at this time.

“Hit and Run” swing trading yields another week of solid gains

With Bitcoin showing choppy, indecisive price action near pivotal support and resistance levels lately, we have been focused on shorter time frames for most of our trade entries.

In a strong bull market, we would aim for massive gains by letting the profits run with the uptrend.

However, trying to squeeze too much alpha from a trade in the current environment can easily lead to a winning trade turning into a loser.

Our “hit and run” trading time frame paid off last week, as we promptly locked in sizeable winning trades before $BTC fell apart on the failed test of the 50-day MA.

For the week, your Morpheus Crypto Portfolio locked in a net portfolio gain of +3.7%.

STEPN ($GMT), which initially entered our watchlist entry three weeks ago, was our biggest winner last week.

We bagged a sweet price gain of +54% through holding $GMT for just 3 days!

The original buy setup is shown below, along with our actual portfolio entry and exit prices we alerted you to:

Watchlist

Because of mixed signals and recent indecision in $BTC, our overall short-term market bias is currently neutral to slightly bullish.

As such, we are satisfied that the Morpheus Crypto Portfolio is currently 100% cash; it gives us the ability to easily “stick and move” as necessary.

Nevertheless, we continue scanning hundreds of charts to look for the best crypto swing trade setups if/when market conditions improve.

Below are the symbols of a few altcoins with high relative strength that we are stalking for potential buy entry (as long as Bitcoin holds up):

• $KNC – Massive relative strength and steady uptrend on daily chart. Looking for low-risk pullback entry.
• $DOGE – Although we still do not like the fundamentals of $DOGE, it has broken out on massive volume due to news of Elon Musk buying Twitter (!!). Big volume doesn’t lie. Watching for potential pullback to its 10-day MA.
• $NEAR – Strong fundamentals and high relative strength, with a recent pullback to the 50-day MA.
• $MTRG – High relative strength and steady daily uptrend. Looking for a pullback entry.
• $MTX – Big volume breakout on daily chart. Pulled back and now entering consolidation.
• $HBB – Massive volume and breakout two weeks ago. Now on a pullback. Looking for low-risk entry.

As always, we will promptly send you a trade alert with details if/when we enter any of these trades in your Morpheus Crypto portfolio this week.

SIGN UP NOW to start receiving your winning Morpheus crypto trade signals, including a crypto portfolio you can easily follow. Morpheus Crypto PRO includes live crypto trader room for daily, real-time trade ideas and powerful crypto trading education.

The post Morpheus Crypto Report – $GMT Breakout: +54% Gain Locked in 3 Days appeared first on Swing Trading Blog | Trading Strategy Articles | Trading Tips.

Morpheus Crypto Report – April 18, 2022

Below is the full, archived version of Morpheus Crypto Report that was sent to subscribers on April 18, 2022.

If you enjoy what you see, please join us as a Morpheus member to receive real-time access to your live crypto trader room, crypto trading analysis, crypto signals, and crypto portfolio.

Please drop us any questions or comments at the bottom of the post–we’d love to hear from you!

Crypto Portfolio

(tracks and updates all crypto signals sent to members)

New crypto signals sent to members since the previous week are in yellow above.

Bullish Bitcoin reversal at key support level

In the April 11 issue of Morpheus Crypto Report, we said to keep an eye on Bitcoin ($BTC) as it tested the 50-day moving average.

Later that day, $BTC confirmed the breakdown below the 50-day MA with a move down to 39,200 before finding short-term support.

After a small bounce and several days of tight price consolidation, $BTC undercut support of its April 11 swing low, falling to a low of 38,500 (on April 18).

However, buyers quickly stepped in and volume started surging, powering $BTC back above the key psychological support level of 40,000 once again.

This price action created an important bullish reversal pattern on the daily chart of $BTC.

When an uptrending crypto has a multi-week pullback and then forms a bullish reversal bar, it often marks a significant low of the pullback.

In this case, the bullish reversal bar also coincided with an undercut of the uptrend line off the January 2022 low.

The daily chart of $BTC below shows the undercut and bullish reversal at key support:

Per our April 18 trade alert, we bought $BTC in the portfolio at 40,280 due to the bullish reversal on higher volume.

Our stop is neatly placed just below the low of that reversal bar, as we would not want to see the price violate that level now.

Overall, we like the positive risk-reward ratio for this crypto swing trade into the King of Crypto!

Morpheus Crypto Portfolio gains after a volatile week

The sharp sell-off followed by the bullish reversal led to a bit of volatility in the portfolio–but ultimately led to a positive outcome.

The overnight weakness before the bullish reversal caused a few positions to hit their stops-but that’s okay! That’s what they are there for!

Protective stops keep you out of serious trouble in case the market does NOT reverse after breaking down below a key support level.

On the same day, $GMT and $OGN both showed excellent relative strength by zooming to new swing highs while $BTC was still near its low.

$GMT and $OGN are currently showing gains of +39% and +22% respectively since the buy alerts were sent–on April 16 for $GMT and only April 17 for $OGN.

Let’s take a look at the $GMT and $OGN setups that led to our buy entries:

STEPN ($GMT)

We initially alerted you to $GMT in last week’s report, where we showed you the following chart that was on the watchlist for potential breakout entry:

Initial breakout setup as it appeared in your April 11 report:

Fast forwarding to the present chart of $GMT below, note the “textbook breakout” from a consolidation pattern:

We will trail a stop higher and/or sell partial position size into strength as $GMT breaks out to new highs.

Origin Protocol ($OGN)

$OGN is currently showing a quick gain of +21% since our portfolio buy entry only yesterday (April 17).

The daily chart below shows the setup that led to our buy signal:

Our initial target price for $OGN is a re-test of the March 20 high (0.85), which would result in a rather sizable gain of +55%.

However, as with $GMT, we will also secure current gains by trailing a protective stop higher as the price action allows.

THORChain ($RUNE)

With a whopping gain of more than +300% last month, $RUNE was one of the top relative strength cryptos in March 2022.

Rather than chasing the price higher, we have been patiently waiting for a substantial pullback that would provide us with a low-risk buy entry in $RUNE.

After retracing lower over the past several weeks, $RUNE provided us with that ideal entry point on April 18:

Notice that $RUNE undercut its 50-day moving average for just one day before reversing to close back above it.

This type of “undercut” followed by a swift bullish reversal is a reliable buy signal when it occurs at closely-watched support levels such as a 50-day MA.

Volume also picked up on the move back above the 10 and 50-day MAs, confirming the bullish reversal price action.

As with $BTC, our stop is neatly placed just below the low of the reversal bar (plus some wiggle room).

$RUNE is currently showing a gain of +9% since the April 18 buy entry in Morpheus Crypto Portfolio.

Power of the Morpheus relative strength system

As mentioned earlier, both $GMT and $OGN ripped higher while $BTC was near its lows.

This was simply a continuation of the relative strength that both altcoins were already showing on their daily charts.

When a crypto is so strong that it holds up even while $BTC/$ETH are selling off, it is typically the first to explode higher when the broad market eventually bounces.

That’s what we constantly scan for with the Morpheus relative strength trading strategy: The best bullish altcoin charts with top relative strength to Bitcoin ($BTC) and Ethereum ($ETH).

Then, we patiently wait for low-risk entry points through either buying pullbacks or breakouts.

Morpheus Crypto Watchlist: Hot crypto swing trade setups on our radar

Recent leadership and big gains in $GMT and $OGN are positive initial signs for the altcoin market.

Now, we are monitoring for additional new leadership to start appearing–which may not be the same leaders of past altcoin rallies.

Below are annotated charts of a few setups we are stalking for potential buy entry in the crypto swing trading portfolio.

As usual, we will send a trade alert with details if/when any of these trades trigger our buy signal:

Kyber Network Crystal ($KNC)

Frax Share ($FXS)

Metal ($MTL)

Zilliqa ($ZIL)

Near Protocol ($NEAR)

SIGN UP NOW to start receiving your winning Morpheus crypto trade signals, including a crypto portfolio you can easily follow. Morpheus Crypto PRO includes live crypto trader room for daily, real-time trade ideas and powerful crypto trading education.

The post Morpheus Crypto Report – $GMT Crypto Swing Trade Breakout to Big Gains! appeared first on Swing Trading Blog | Trading Strategy Articles | Trading Tips.

Morpheus Crypto Report – April 11, 2022

Below is the full, archived version of Morpheus Crypto Report that was sent to subscribers on April 11, 2022.

If you enjoy what you see, please join us as a Morpheus member to receive real-time access to your live crypto trader room, crypto trading analysis, crypto signals, and crypto portfolio.

Please drop us any questions or comments at the bottom of the post–we’d love to hear from you!

Crypto Portfolio

(tracks and updates all crypto signals sent to members)

New crypto signals sent to members since the previous week are in yellow above.

Bitcoin: All eyes on the 50-day MA

Bitcoin ($BTC) and most of the crypto market spent the past week in pullback mode, after a solid week of prior altcoin gains led by Ethereum ($ETH).

In the April 4 issue of Morpheus Crypto Report, we said it was “all about Ethereum” due to the relative strength that $ETH was showing to $BTC.

But this week, all eyes are on $BTC as it tests key, pivotal support of the 50-day moving average:

Currently, $BTC is trading about 2% below key support of its 50-day moving average, which is currently around 41,920.

When a cryptocurrency approaches an important, closely watched level of support such as a 50-day moving average, it is not uncommon for the price to undercut the actual support level before reversing higher.

Many traders and investors set their stops tightly below obvious support levels, and those stops often get run before the technical support does its thing to reverse the price higher.

As such, $BTC could still snap back above its 50-day MA and spark a new short-term rally.

However, all bets are off if the price does not reclaim the 50-day MA within the next 1 to 2 days.

The inability to quickly move back above the 50-day MA would be a confirmed break of intermediate-term support.

As for Ethereum, the daily chart of $ETH is still showing relative strength to $BTC–but the relative strength has been fading over the past few days.

Looking for Leadership

When the crypto market is in recovery mode and trying to establish a new uptrend, one of the indicators we utilize is leading altcoins breaking out to new all-time highs ahead of Bitcoin and Ethereum.

As top altcoins establish leadership and break out to new highs, it generally pulls the rest of the crypto market higher alongside it.

For example, it was encouraging that $LUNA broke out to a new all-time high above $104 two weeks ago.

This signal initially told us that other fundamentally strong altcoins may start following suit to new highs as well.

However, the $LUNA breakout failed to follow through and the breakout failed after just a few days.

Now, $LUNA is seeing heavy selling due to traders and investors who bought the breakout and did not quickly sell when the breakout failed:

IF $BTC finds support at its 50-day MA and starts to rally this week, then we will again turn our attention to looking for individual altcoin leadership that could pull the market higher.

Altcoin Watchlist

Most altcoins lagged $ETH last week, and many have slipped back below their 50-day moving averages.

However, several cryptos are still showing relative strength on their daily charts by holding near their recent highs.

If $BTC and $ETH stabilize and start to head back up, the following cryptos with relative strength could be among the first to rally higher:

NEAR Protocol ($NEAR)

Kyber Network ($KNC)

GMT Token ($GMT)

Zilliqa ($ZIL)

In addition to the above, both $CVX and $ETH (already holding) continue to show decent relative strength on their daily charts.

If the crypto market starts to rally this week, the plays above are on the top of our watchlist.

However, all bets for new buy entries may be off (for now) unless Bitcoin snaps back above its 50-day MA within the next one to two days.

Battle Plan

After selling into strength and locking in a net portfolio gain of +6% in the prior week, we entered four new positions with relative strength on April 7 (after Ethereum pulled back to its 20-day MA).

The new pullback entries have failed to gain traction due to the lack of a bullish market reversal after the correction.

However, patiently waiting for pullback entries enabled us to get lower risk entry points for new trade entries.

As such, three of our open positions are still holding above their stops–despite significant short-term weakness in the market.

$AAVE hit its stop after relative strength in the DeFi sector started fading.

For now, we continue holding the remaining three open positions with our original stop prices.

If Bitcoin fails to snap back above its 50-day MA soon, we may sell at least partial position size of these positions to reduce risk.

Meanwhile, we continue scanning the market for potential trade entries so that we are prepared if Bitcoin suddenly snaps back.

As always, we will send an intraday trade alert with tree details if/ when we enter any of the trade setups above .

Obviously, much will depend on bitcoin’s performance as it tests key support of his 50-day moving average.

In the meantime, be sure to honor your stops and remember to trade what you see, not what you think!

SIGN UP NOW to start receiving your winning Morpheus crypto trade signals, including a crypto portfolio you can easily follow. Morpheus Crypto PRO includes live crypto trader room for daily, real-time trade ideas and powerful crypto trading education.

The post Morpheus Crypto Report – Bitcoin Tests Key Support of its 50-day MA appeared first on Swing Trading Blog | Trading Strategy Articles | Trading Tips.

Morpheus Crypto Report – April 4, 2022

Below is the full, archived version of Morpheus Crypto Report that was sent to subscribers on April 4, 2022.

If you enjoy what you see, please join us as a Morpheus member to receive real-time access to your live crypto trader room, crypto trading analysis, crypto signals, and crypto portfolio.

Please drop us any questions or comments at the bottom of the post–we’d love to hear from you!

Crypto Portfolio

(tracks and updates all crypto signals sent to members)

New crypto signals sent to members since the previous week are in yellow above.

Ethereum Breakout with High Relative Strength

Ethereum ($ETH), the second largest cryptocurrency behind the King of Crypto, led the crypto market higher last week, with a solid display of relative strength.

As Bitcoin ($BTC) drifted lower in pullback mode, $ETH trended steadily higher.

Ethereum also broke out above a key level of horizontal price resistance and bounced perfectly off support of its 10-day moving average.

On March 30, we alerted Morpheus Crypto PRO members in the Crypto Trading Room that we were monitoring for a potential pullback buy entry for $ETH in the portfolio.

Specifically, we were looking for a precise buy entry on a pullback to the 10-day moving average.

But why?

In a strongly trending crypto (or stock) the first pullback that touches the 10-day moving average since the start of a new rally is often an ideal, lower-risk buy entry point.

The $ETH Buy Setup

We got our exact pullback entry point the next day, and we sent a Crypto Trade Alert to members that we were buying $ETH in the portfolio.

The daily chart of $ETH below shows our buy entry point:

Notice how our buy entry off the 10-day MA was the FIRST touch of that moving average since the strong rally began weeks prior.

Again, this is typically a reliable buy signal–as long as the pullback is not on higher volume.

Shortly after our buy entry, increasing bullish momentum enabled $ETH to rally all the way back to its prior high the next day.

At the same time, we noticed $BTC only recovered a portion of its similar pullback--not all the way back to the highs like $ETH!

This is notable because it pointed to clear leadership and relative strength in $ETH versus $BTC.

Leadership in $ETH also meant that we were likely to see short-term buying momentum in the overall altcoin market.

Locking in a +7% gain on a 4-day hold of $ETH

When we bought $ETH, our trade plan was a quick momentum swing trade to just above the 3,600 area–a resistance area from earlier this year.

At the same time, we also wanted to take profits quickly if the price action started to falter (rather than sit through a pullback).

On April 3, $ETH broke out above its short-term highs and made a run for the 3,600 level.

However, the price action stalled and $ETH drifted right back down to its prior base.

This is shown on the hourly chart below:

Given this short-term stalling, we sent a Crypto Trade Alert notifying members we were raising the stop to just below the low of that pullback.

As anticipated, the short-term stalling led to further selling, which quickly knocked us out of the trade with a solid +7.9% gain.

That’s the Morpheus trading system at work with low-risk entry points and proactive trade management to generate consistent crypto trading gains!

Bagging a +18% gain in Bitcoin

We bought $BTC in the Morpheus Crypto portfolio after the higher volume, bullish reversal candle formed on February 24 (one of our “longer-term” swing trades).

Following our trading plan and trailing stops higher along the way, we finally sold the $BTC position into strength on March 29, for a solid gain of +18.6%.

The daily chart below shows our exit into strength, as it stalled at resistance:

Our $BTC exit has worked out well, as that has marked the high of the rally so far.

Still, price action in $BTC lately remains constructive, as it spent the past week in healthy pullback mode.

Currently, Bitcoin has pulled back to the 45,500 to 46,000 area–which is new support of the prior resistance from the February highs.

If $BTC fails to hold the 45,500 level, then look for next support around the 44,200 level.

This is support of the prior pullback low from April 1, which also converges with support of the 20-day exponential moving average.

Regardless, keep in mind that $ETH may still be a better pullback re-entry than $BTC because of its higher relative strength (but keep in mind the crypto market is quite dynamic).

Hit and run altcoin trades

As mentioned above, the relative strength in $ETH spread to the rest of the altcoin market last week.

We took advantage of short-term momentum in the altcoin market with a few trades we held just a few days and sold for gains.

This enabled the Morpheus Crypto Portfolio to lock in a net portfolio gain of +5.5% for the week.

Individual trade stats were quite positive as well.

For the week, we closed the following trades (as shown in the portfolio above):

• 6 winners with an avg. net portfolio gain of +1.04%
• 3 losers with an avg. loss of just -0.24%
• 1 scratch (breakeven)

Let’s review the charts of a few of these trades, to help you understand our rationale for the entry and exit levels of each.

$COMP: +17% gain in 5 days

$CVX: +13% gain in 2 days

$QNT: +13% gain in 1 week

Battle Plan

After a highly profitable, busy week of trading, the Morpheus Crypto Portfolio is now back to a 92% cash position (only holding $DPI).

Recent market momentum has been ideal for profitable short-term trading opportunities, but we are not in a new bull market YET.

That’s why we have been proactively managing the portfolio trades with more aggressive exit strategies.

The short-term trend remains up since last month’s bullish reversal, but the intermediate-term trend could flip either at this point (depending largely on $BTC action).

As such, our overall trading strategy right now is to continue our “hit and run” strategy to focus on relatively quick profits with less risk of sitting through potentially steep pullbacks.

The market has given us some great trading opportunities over the past week, but may be entering a short-term period of indecision based on chart patterns we are seeing right now.

As such, we are currently scanning hundreds of charts for new potential pullback setups, but are not in a hurry to enter new trades at the moment.

Let’s be patient to wait for the low-risk entry points to develop, just as we did by waiting for the pullback to the 10-day MA for our $ETH trade entry recently.

With a 92% cash position, we can be nimble and ready for the next opportunities.

SIGN UP NOW to start receiving your winning Morpheus crypto trade signals, including a crypto portfolio you can easily follow. Morpheus Crypto PRO includes live crypto trader room for daily, real-time trade ideas and powerful crypto trading education.

The post Morpheus Crypto Report – Ethereum Breakout with Relative Strength ($ETH) appeared first on Swing Trading Blog | Trading Strategy Articles | Trading Tips.

Morpheus Crypto Report – March 28, 2022

Below is the full, archived version of Morpheus Crypto Report that was sent to subscribers on March 28, 2022.

If you enjoy what you see, please join us as a Morpheus member to receive real-time access to your live crypto trader room, crypto trading analysis, crypto signals, and crypto portfolio.

Please drop us any questions or comments at the bottom of the post–we’d love to hear from you!

Crypto Portfolio

(tracks and updates all crypto signals sent to members)

New crypto signals sent to members since the previous week are in yellow above.

Bitcoin blasts above its February high

In the March 21 issue of Morpheus Crypto Report, we showed you that Bitcoin ($BTC) was testing resistance of its prior swing high from March 9 (near the 42,500 level).

We said that if Bitcoin broke out above that level, then the real test of resistance would come around the 45,500 to 46,000 level (horizontal price resistance of the February highs).

On March 27, $BTC convincingly broke out above the 46,000 resistance level, as shown on the daily chart below:

With Bitcoin’s rally above its February high, it’s notable that $BTC has now also formed two major higher highs and higher lows since it’s January low near 33,000.

Since the 45,500 to 46,000 area was formerly a key level of resistance, this range should now act as new support on any short-term pullback.

Note that it would even be okay if the price of $BTC briefly dips below the 45,500 level–as long as the price swiftly snaps back above that pivotal support level the same day.

However, a pullback below 45,500 that does not quickly recover could indicate a failed breakout, rather than a typical stop run.

So far, there is no indication of a potential failed breakout, but it’s good to be aware of this possibility.

Back above the 50-week MA

Zooming out to the longer-term weekly time frame, it’s quite notable that $BTC has reclaimed support of its 50-week moving average:

Last year, notice how the 50-week moving average perfectly acted as support each time $BTC pulled back from its highs (circled in yellow).

That 50-week MA support level eventually flipped to become the new resistance level after Bitcoin entered into correction mode towards the end of 2021.

However, the current $BTC breakout has once again put the price back above its 50-week moving average.

In the coming days, traders and investors will be closely monitoring whether or not $BTC is able to hold above that 50-week moving average.

For now, reclamation of the 50-week MA is firmly bullish and has triggered a new, intermediate-term “buy” signal in the crypto market.

Battle Plan

When Bitcoin initially breaks out above a key, closely watched resistance level, funds typically flow out of the altcoin market and directly into $BTC (which causes the Bitcoin Dominance Index to rise).

That’s why $BTC was one of the first positions we bought in the portfolio after the crypto market started reversing higher in recent weeks.

Now, we are also starting to see broad-based buying momentum in the altcoin market–similar to the types of massive altcoin gains we saw throughout much of last year.

Accordingly, we have been steadily deploying our portfolio cash position to enter new altcoin swing trade setups.

Currently, the Morpheus Crypto portfolio is holding seven open positions–each of which is currently showing a gain.

After rallying for eight consecutive days, $BTC may soon pull back–or at least enter into a short-term price consolidation–to digest recent gains.

As such, we will continue trailing stops higher in our open positions to maximize profits and protect gains in case of a pullback.

As for new setups, we have been aggressively scanning hundreds of charts to look for the best trade setups with bullish chart patterns and relative strength.

Although a vast majority of the altcoin market bounced sharply over the past week, it’s important to distinguish between dead cryptos merely bouncing off their lows (suitable for quick trades) and those with high relative strength that can be held longer, in anticipation of larger gains.

Be on the lookout for trade alerts to notify you of any new trade entries, exits, and stop updates in the portfolio.

SIGN UP NOW to start receiving your winning Morpheus crypto trade signals, including a crypto portfolio you can easily follow. Morpheus Crypto PRO includes live crypto trader room for daily, real-time trade ideas and powerful crypto trading education.

The post Morpheus Crypto Report – +16% Gain from $CELO Crypto Swing Trade appeared first on Swing Trading Blog | Trading Strategy Articles | Trading Tips.

Morpheus Crypto Report – March 21, 2022

Below is the full, archived version of Morpheus Crypto Report that was sent to subscribers on March 21, 2022.

If you enjoy what you see, please join us as a Morpheus member to receive real-time access to your live crypto trader room, crypto trading analysis, crypto signals, and crypto portfolio.

Please drop us any questions or comments at the bottom of the post–we’d love to hear from you!

Crypto Portfolio

(tracks and updates all crypto signals sent to members)

New crypto signals sent to members since the previous week are in yellow above.

Bitcoin breaks out above key level of short-term resistance

Over the past few weeks, we’ve been discussing how Bitcoin ($BTC) has been stuck in “no man’s land,” chopping around indecisively in a range.

However, conditions improved over the past week and we have definitely noticed a significant change of character in cryptoland.

Although still confined within its sideways range of the past seven weeks, $BTC reclaimed support of its 10, 20, and 50-day moving averages on March 16 and was confirmed by higher volume.

Prior to that move, all three moving averages were clustered together to form resistance in the 39,000 to 40,000 area.

But now the 10, 20, and 50-day moving averages have flipped to become the new area of short-term support.

In technical analysis, a prior level of resistance becomes the new level of support after the resistance is broken.

On the daily chart of $BTC below, notice the 10, 20, and 50-day moving averages have all converged to provide support just below the 40,500 level.

Bitcoin ($BTC)

Notice how all three moving averages are now pinched together, just below today’s intraday low.

It’s also positive that all three moving averages are starting to point upwards.

This means the 40,500 area has now become a key, pivotal level of short-term price support to monitor for $BTC.

As for resistance, we continue to monitor for a potential breakout above resistance of prior swing high from March 8 (just above 42,500).

A breakout above that level could quickly propel Bitcoin to test major, intermediate-term resistance of its February high (45,500 to 46,000 area).

If $BTC convincingly breaks out above the 46,000 area, it would form a significant “higher high” on the weekly chart time frame.

This would also change our intermediate-term $BTC bias from “neutral” to “bullish”–but Bitcoin still has a lot of work to make that happen.

Now that the 10, 20, and 50-day moving averages have converged to neatly provide support, we have raised the stop on our existing $BTC position to just below the 40,000 area to reduce risk.

Note the new stop in the Crypto Portfolio section of the report above.

Setting up for altseason?

The improving price action in $BTC lately is encouraging.

However, we are more focused on what we are seeing in the altcoin market right now.

Hundreds of altcoins rallied above resistance of their recent base highs last week, and are now pulling back to form bull flag patterns on their daily charts.

More importantly, we have started seeing a few altcoins breaking out above resistance of their longer-term WEEKLY downtrend lines.

Check out the following altcoins that are showing leadership by breaking out above their weekly downtrend lines.

Avalance ($AVAX)

Terra ($LUNA)

Waves Protocol ($WAVES)

THORChain ($RUNE)

$THOR has not yet broken out above its weekly downtrend line, but has clearly been showing leadership in recent weeks:

In addition to above, we are also starting to see funds rotating into the DeFi sector.

Blue-chip DeFi cryptos such as $AAVE and $COMP have been dead for many months, due in part to fear of the unknown regarding forthcoming government regulations.

However, Biden’s recent Executive Order on crypto seems to have sparked a relief rally in the sector.

HERE is a list of the leading DeFi tokens to add to your watchlist.

Battle Plan

This week, we locked in a big gain of +32% with the $IMX position we bought in the Crypto Portfolio on March 11.

Currently, the portfolio is also holding $BTC, $SAND, and $CELO.

As overall market conditions continue improving, we are constantly scanning hundreds of altcoin charts for the best new trade setups with low-risk entry points.

Again, we are focused primarily on cryptos that have broken out above the weekly downtrend lines, which we may be looking to buy on pullbacks to support.

SIGN UP NOW to start receiving your winning Morpheus crypto trade signals, including a crypto portfolio you can easily follow. Morpheus Crypto PRO includes live crypto trader room for daily, real-time trade ideas and powerful crypto trading education.

The post Morpheus Crypto Report – +33% Gain from $IMX Crypto Signal appeared first on Swing Trading Blog | Trading Strategy Articles | Trading Tips.