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.
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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)
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