The Only Value Investing Crypto Newsletter | 100% hype free

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CHEAT SHEET

(You can print this out at work to follow along.)

You can see why the price is now bouncing around $40,000 - we’ve reached resistance on the Monthly timeframe. This is the key level to hold and break if we are to go higher. The next stops would be $40,369 (daily resistance) and if we can hold that we could see a rise this week to $44,512 to test weekly resistance.

On the down side. The price could go all the way down to retest the daily support at $37,778. That’s a very large range on the daily. So you can see there’s good opportunity to make money on both the upside and the downside with such a wide range.

With a Bullish Bias on both the Daily and the Weekly for Bitcoin and ETH we’d be careful shorting. The simplest strategy would be to buy dips that come near daily support ($37,778 and $2289 ETH is here now) or a breakout above the Monthly resistances ($40,090 and $2,428).

What We Are Watching

Send us emails or write in the comments questions you have about why we like these tokens or what you’d like to hear more about.

We further breakdown our case for these cryptos here : What We Are Watching

DeFi News

• Traders anticipate 'DeFi Summer 2.0’ after TVL and token prices rise

• Binance completes MATIC wallet integration. You can now withdraw MATIC directly to Polygon PoS MainNet directly from Binance.

• Tails launched recently in the Terra (LUNA) ecosystem. This could bring higher demand to the UST token that LUNA provides collateral for.

TAKE ME TO (BTC) MAXI TOWN

No it was not planned that Foot Guns would launch and Bitcoin would never have another down day every again- Ha! Back to the serious stuff…

Bitcoin is back above the 200 Day EMA. Now it has some proving to do. The EMA now has to hold as support or Bitcoin will continue it’s downward fall. You can see the slope of the decline between the April peak and the May peak (dashed teal line). The Bitcoin price could keep going down following that teal dashed line if the EMA does not hold as support.

But what if we don’t go down? Where to next?

The three yellow marks on the chart are indicating a potential inverse head and shoulders. The technical target is in the low $50,000s. If you look at the bottom of the chart you can see the RSI has rapidly shot up to 69.87. If the RSI can get above 70 and stay there we’d expect to see the price rise rapidly towards the $50,000 level if it is not rejected at the January 2021 high, $41,882.

Possible Course of Action

• If you are long still continue to hold and possibly scale out at the January 2021 high, $41,882.

• If the price fails to hold the 200 day EMA and the RSI falls rapidly you could open a short expecting the price to retest $35,000.

Price Action Summary

The Bulls’ Defense:

• Price is back above 200 Day Exponential Moving Average

• Price is above original price decline slope off ATH.

The Bears’ Prosecution:

• Price craps out and falls back below 200 Day Moving Average

• Volume the last 2 days has been declining

Recent News

• Elizabeth Warren calls Bitcoiners a "shadowy, faceless group of super coders".

• Good thing you are here with us. “Media scrambles to find explanation for Bitcoin’s rise to 40k”. We’ve been giving you The Bull’s Defense and the The Bear’s Prosecution Daily. Don’t worry if there is, for example, some geopolitical development with Chinese Bitcoin mining policy we’ll let you know if we think it will impact the price. Most news is “cooked” into the price well before the media writes an article about it.

ETH SHY BOY ZONE

We’ve been talking about this being a possible bearish engulfing or bullish engulfing outside reversal. Yesterday’s candle closing green gave us confirmation to the upside. This doesn’t mean the price goes up and to the right at a 45 degree angle. ETH could go back down to test support at $2150. If that support is held we’d expect ETH to then go back up to retest resistance at $2550. The bullish engulfing pattern gives us confidence that the price will rise to retest $2550 in the near term.

Possible Course of Action

• Dips are for buying until near $2550.

• If you are already in a long sit tight until near $2550.

• There might be a quick short down to $2150.

The Bulls’ Defense:

• Confirmation of bullish engulfing outside reversal.

• W pattern on the Daily points to $3000 ETH in the near term.

The Bears’ Prosecution:

• Price hit $2500 support and fell rapidly after approaching this level. Eth lagging behind Bitcoin in the past few days.

Recent News

• Shopify now supports sales of NFTs on Flow and Ethereum blockchains

• For the first time in history, an ENS name and a DAO will receive producing credits on a film.

• Valid Points: Ethereum Devs Grapple With Worst-Case Scenarios

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