Market continues to dump, and a new support line test is underway.

01.08.2023

Dear traders,

BTC dropped from the $29,000 support, and the next significant support lies at $28,000 and below, where a substantial bounce is expected.

ETH is currently trading at a breaking point of $1,830, and a larger drop is still possible as the market experiences a slowdown in volume.

XRP is trading at a critical support level of $0.67, which is expected to hold for the next leg up. If the support fails, the price may be strongly pushed towards the $0.5 level, which acts as strong support.

LINK is retesting the support at $7, and a stronger buy momentum is needed to push the price up. Still, it remains a good long-term buying option.

SOL is approaching the $22 support, which should act as a strong bounce-up point. However, it is still at risk of a bigger drop before the next push up.

EOS is nearing the $0.7 support level and requires a stronger buying push to break the resistance above $0.79. It remains an attractive spot for a long-term buying option.

LTC is still testing the $88 breaking point, and there is a possibility of a bigger push down before the next leg up. The halving event presents an excellent long-term investment opportunity!

DXY is showing bullish momentum and is currently breaking the resistance at 102.

Crypto/stock daily news:

INVESTMENT STRATEGY OF THE WEEK: CALL OPTIONS

Bitcoin is up big this year (+76%). But as of late, prices have been flat and stuck between $29,000 – $30,000.

It’s been one long game of crypto table tennis…

Now investors are all wondering one thing: Where should I put my money?

Well, one alternative is a call option. This is something that gives traders the option to buy an asset at a specific price, before a later date.

If investors are bullish on an asset, call options could be a good strategy to optimize returns.

Let me give you a quick analogy.

Let’s say I want to invest in some chickens and lay some eggs. (tired of the overpriced ones at the grocery store)

I go to an auction house and find some for $1000.

But, I’m still not sure if I want to buy them. (my wife might kill me if I randomly come home with chickens)

So the auctioneer cuts me a deal: he’ll hold the chickens for me, at the agreed price, until the end of the month.

We sign a contract and in return, I pay him a small fee.

Then two weeks later, I get a call from the auctioneer. He gives me crazy news…instead of laying eggs, the chickens are laying bricks of cash.

The whole town knows and the money-printing chickens are on national news.

Now everyone wants to buy some of these chickens. The price skyrockets from $1000 —> $10,000.

The good news: the auctioneer and I still have our deal at a flat rate of $1000.

So I drive to the farm, buy the chickens for $1k, and immediately go sell them in the parking lot for $10k. *cha-ching*

The same thing can be done in crypto.

And according to Markus Thielen (head researcher at Matrixport), now might be a good time for Bitcoin investors to switch over to call options.

Here’s why:

Bitcoin trading volume and volatility have decreased. Bitcoin’s 30-day realized volatility has declined to 28% (the lowest since January).

As volatility decreases, investors historically look toward buying call options. Because options contracts are priced based on the expected volatility of the underlying asset, it’s cheaper to buy them when volatility is low.

He suggests investors lock in some YTD gains with Bitcoin now and rotate those profits into buying call options. Investors cash in on profits and the call option allows investors to get back into the game if there’s another pump.

It’s a pretty interesting strategy and if the rally continues, call options could lead to big gains.

But as always, remember the golden rule…

TRADER JAKE Rule #1: Always DYOR (do your own research)