Today’s Market Update: Bitcoin Keeps Outperforming and the Magnet Strategy Nails Another Trade
Today’s Quick Byte is intentionally short after the marathon Founders LIVE meeting.
Most of the larger framework continues to play out roughly as expected. The DXY is running into resistance, and at this point I increasingly think the dollar may roll back down rather than make the next leg higher immediately.
That also keeps TLT behaving within the zigzag pattern we have been watching.
I continue to like TLT, but this is not where I would add. My framework remains simple: buy near the bottom of the range, not near the top.
The same applies to the 5-year Treasury. Whenever yields push back above roughly 5%, I continue to think the risk/reward becomes attractive.
Bitcoin Continues to Lead Crypto
The more interesting story today is Bitcoin’s continued relative strength.
Bitcoin is not only outperforming the broader market—it is also outperforming Ethereum and Solana.
Bitcoin dominance has been rising since roughly June, and the charts continue to reflect that leadership.
More importantly, crypto is trading extremely technically right now.
Solana has repeatedly defended its 50% Fibonacci retracement, while also sitting on a dense cluster of support including the 21 EMA, 50 EMA and Golden Pocket.
Ethereum looks similar. It is parked near its 50% retracement, while also sitting above the 50-week moving average and 21-week EMA.
That is why I continue to say there is simply more traffic beneath crypto than above it.
Could prices fall?
Absolutely.
But they have to chew through a tremendous amount of technical support to do it.
Bitcoin is even stronger. Its major support remains further below, around the 365-day moving average near $77K, followed by the 21-week, 50-week and 50% retracement.
That distance itself is evidence of Bitcoin’s relative outperformance.
Why I Closed My $81K Short
This continues to validate why I closed my Bitcoin short from roughly $81K for a profit.
I did not close it because I suddenly became bullish.
I closed it because I did not want to remain short while price was moving into layer after layer of technical support.
The structure still looks like:
elevator up → escalator down → elevator up → escalator down.
That is very different from the impulsive downside structure we saw during the heart of the bear market.
The Magnet Strategy Made a Remarkable Trade
The part that continues to impress me most is the Crypto Magnet SHADOW strategy.
During the Founders LIVE meeting, the BTC Long strategy fired automatically.
It entered around the $80K–$81K area and set its profit target near $81,857.
That exit ended up being almost perfectly at the local top before Bitcoin rolled back over.
What makes that interesting is that the strategy does not know any traditional technical analysis.
It does not see:
Bollinger Bands
moving averages
Fibonacci levels
macroeconomic data
FOMC meetings
news
It only sees things like liquidity pockets, open interest and futures positioning.
Yet it exited almost exactly where traditional technical resistance appeared.
That tells me something important.
The move itself was probably being driven by liquidity.
The system saw the pocket, entered the move, captured it and exited before the reversal—all without being told where traditional resistance was.
Current Liquidity Map
The Magnet Map is now showing several important areas.
On the upside, notable liquidity remains around:
$82.4K → $84.5K → roughly $85K
On the downside, the next major pocket is around:
$78.7K
That gives us a fairly clear battlefield.
If market makers push higher, I would not be surprised to see them sweep toward $85K before rejecting.
If broader market weakness finally pulls Bitcoin down with it, the $78K area becomes the next important downside magnet.
SHADOW Reaches Another P&L High
The SHADOW Portfolio is now at its highest P&L level so far.
We are approaching roughly $1,000 of profit over 56 days, and that still excludes a significant number of Ethereum wins that were not properly recorded earlier.
More importantly, every active strategy currently has a positive win rate.
That is what I care about far more than the absolute dollar amount.
The question remains:
Can this system trade profitably without me, without discretionary intervention, without news, without macro inputs and without even knowing traditional technical analysis?
So far, the answer continues to look increasingly promising.
Bottom Line
Bitcoin continues to show impressive relative strength, both against equities and against the rest of crypto.
Ethereum and Solana remain parked around major technical support, while Bitcoin continues floating well above its deeper support structure.
But the most interesting development remains the Magnet strategy.
The latest BTC Long trade entered and exited almost perfectly using nothing but liquidity and open-interest information.
That is exactly the kind of edge I am looking for.
As markets increasingly move toward 24/7 automated trading, I do not want a bot that simply trades the same indicators every other bot sees.
I want one that sees something different.
