Hello everyone!

Welcome to the fifth edition of my newsletter! Every Saturday I’ll be sending out a quick newsletter on how to master crypto. I write about mindset, trends and analysis.

Today, I focus on the two layers of analysis:

• Technical Analysis (TA)

• Fundamental Analysis (FA)

The two layers of analysis

Technical analysis (TA) is a valuable skill in trading, particularly for shorter timeframes like day trading.

It helps identify entry and exit points, set stop orders and targets, spot trends, and identify divergences. I have several threads in the pipeline or already written that delve into all of these topics. However, TA is not a crystal ball for predicting future price action.

Liquidity is for me the most crucial factor of TA, because it’s deeply related with market psychology. It drives price action more than lines on charts.

Market makers aim to fill stop orders and create maximum pain for traders. Remember: every trade is a zero-sum game where someone wins if you lose and market makers will try to get the money of as many people as possible.

Liquidity pools indicate profitable directions, and if there are significant liquidations near a resistance or support level, the price is likely to move in that direction. I will keep you up-to-date on the current liquidity pools.

However, news and hype (fundamental analysis) can override chart patterns. Significant bullish or bearish news can cause unexpected market moves.

To be a successful trader, it's important to master all layers of analysis: technical analysis, liquidity analysis, and fundamental analysis. While it's good to focus on the layer that suits your trading style, it's essential not to ignore the other layers entirely.

Market Overview

As said earlier, I believe we'll see a solid pump in June. The liquidity pool below the 200-day MA and resistance is currently to hard to reach, in my opinion. Maybe it will take a few more days to fill those pools. Then up north.

We'll likely go deeper in Q3/Q4 before the real bull run. But that's still far away, and anything can happen until then. I won’t trade this, until the direction is clear. Better safe than sorry!

Twitter Reads

This week has been eventful on Crypto Twitter. Ben.eth raised millions of dollars with his third coin launch, and then there's this: over a $1.2M for literally nothing. It's so absurd! The gas fees alone could have fed thousands of hungry children...

Great view on work-life-balance:

And if you're not familiar with the Wim Hof Method yet, I highly recommend checking out this thread:

With my best regards and wishes, I hope you have a wonderful weekend!

Marco

If you haven’t already, subscribe to this free newsletter.

↓

And if you have any questions, I’d happy to help. Just reach out to me on Twitter.

↓