Prelude To Something Extraordinary

Aug 07, 2023

IN TODAY’S REPORT

What we cover: Technical View edition. Ethereum’s 100-day range falls to its lowest level ever seen. The locals and the elders.

TODAY’S TECHNICAL VIEW

Strangely Calm, Eerily Quiet, And Arguably Unnatural

We are likely nearing a major inflection point for Bitcoin and Ether. With Ether’s 100-day range now falling to its lowest level ever seen and Bitcoin likewise breaking multiple past low volatility extremes, it appears highly probable that the current moment — right now — will be regarded as the prelude to something extraordinary in the not too distant future.

Before we unpack Ether’s current setup, here’s a brief excerpt of what we quantified last week for Bitcoin:

When Bitcoin is above its 100ma, low ADX readings below 15 have typically been highly bullish and beaten buy and hold. When combined with the monthly studies we featured in our 7/31/23 report, Bitcoin’s eerily quiet daily price action and low ADX look explosive. Don’t let Bitcoin’s slumber fool you — the king will soon awaken. [REKTelligence Report, 8/03/23]

Turning to the ever-evolving world of Ethereum, we observe that Ether now sits just fractionally above its rising 200-day moving average (200ma) as its 100-day range reading falls to below 20% for the first time in its history.

For our valued readers as yet unfamiliar with the implications of this measure, think of an oceanfront with which you’re familiar. It can be real or from a show or movie — doesn’t matter.

`ETHEREUM (ETH/USD). Daily Chart with REKTelligence Rangeometer and 200ma.`

Share REKTelligence Report

While any oceanfront setting is perpetually dynamic and changing, there’s typically an observable norm in terms of wave height and the rhythm of the surf breaking on the shore.

Ether’s wave height has essentially disappeared and currently there’s no discernable surf. In other words, the observable surface of ETH resembles a glassy ocean. Strangely calm, eerily quiet, and arguably unnatural.

The younger locals remark that they’ve never seen the water so placid, then go about their day. The elder locals make the same remark, but then immediately get to work, bracing for the impending storm.

This is the nature of a highly liquid asset’s range dropping to indiscernible levels, particularly noteworthy when it occurs in one of the most volatile assets the world has ever seen: Ethereum.

Past low extremes have preceded major, memorable price moves in Ether, something we may examine in detail in an upcoming report.

For now, however, smile and wave at the younger locals, but go seek out the elders. They know that the storm is just beyond the horizon and the world is about to change. The so still sea will soon awaken.

THE TLDR

A Few Key Takeaways

Text within this block will maintain its original spacing when published

✔ Ether now sits just fractionally above its rising 200-day moving average (200ma) as its 100-day range reading falls to below 20% for the first time in its history
✔ The observable surface of ETH resembles a glassy ocean. Strangely calm, eerily quiet, and arguably unnatural
✔ Past low extremes have preceded major, memorable price moves in Ether

peace_love_crypto

-DB

Available for iOS and Android

IMPORTANT DISCLAIMER

The information presented and made available in this newsletter is intended for educational purposes only. THE INFORMATION IS NOT AND SHOULD NOT BE CONFUSED WITH INVESTMENT ADVICE AND DOES NOT ATTEMPT OR CLAIM TO BE A COMPLETE DESCRIPTION OF ANY SPECIFIC COINS, TOKENS OR MARKETS OF ANY KIND, BUT RATHER EDUCATIONAL EXAMPLES OF THE APPLICATION OF TECHNICAL ANALYSIS AND QUANTITATIVE ANALYSIS TO THE MARKET. This information has been presented and prepared without regard to any particular person's investment objectives, financial situation and particular needs because as individuals come from diverse backgrounds, with diverse objectives and financial situations. This information is of a general nature only so you should seek advice from your investment advisor or other financial professional as appropriate before taking any action. The opinions and analyses included herein are based on sources and data believed to be reliable and are presented in good faith, however no representation or warranty, expressed or implied is made as to their completeness or accuracy. It is imperative to understand your investment risks since all stock investments involve significant risk. The user of REKTelligence’s newsletters, podcasts, courses, coaching and other educational services agrees to indemnify and hold harmless REKTelligence LLC from and against any and all liabilities, expenses (including attorney's fees), and damages arising out of claims resulting from the use of this educational content. REKTelligence LLC is not a licensed investment advisor.