AI Stocks Are All The Rave

Meme coins lose steam to the AI craze

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Cheat Sheet -

Support and resistance levels and our daily, weekly and monthly bias on BTC, GC, CL, ES, and NQ as well as our favorite altcoins

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Crypto News

• U.S. Is 'Losing' the Bitcoin Movement: Cathie Wood (CoinDesk)

• DCG Sunsets Trade Execution, Prime Brokerage Unit TradeBlock (CoinDesk)

• Tether CTO says US default unlikely because it would be 'catastrophic' (The Block)

• Paradigm broadening crypto-only focus to areas including AI (The Block)

• Chinese state media removes video on crypto after Binance CEO calls it ‘big deal’ (CoinTelegraph)

• Germany’s recession triggers responses from the crypto community (CoinTelegraph)

• South Korea Passes Bill Mandating Lawmakers Disclose Crypto Assets (Blockworks)

• New Sustainability Scoring System for Bitcoin Miners — Fad or Next Industry Standard? (Blockworks)

• What Happens to Bitcoin and Ethereum If the US Defaults on Its Debt?(Decrypt)

• Governments Need to 'Move Faster' on AI Rules, Says Microsoft President (Decrypt)

• Crypto bridge Multichain in turmoil after ‘force majeure’ leads to stuck funds and token sell-off (DLNews)

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BTC Outlook

Bitcoin has slowly been drifting downward since it momentarily rose above $30,000 in April. The volatility continues to diminish ahead of a long weekend and the uncertain state of the US debt ceiling.

The move down today did create a higher low just above $25700 which was last visited on May 12th. It will be important in the coming days to see if Bitcoin can close the month of May above this level. If Bitcoin cannot find support in the coming month and rise back above $30,000 then it becomes more likely that the price remaining in this trading range for the remainder of the year.

Many market participants are expecting Bitcoin to sell off after the US reaches an agreement to raise the debt ceiling. This is because Bitcoin is used by many as a hedge against US defaulting on its debt. A wave of sellers could push Bitcoin back down to the 200 day moving average where bulls would need to step in if this years rally is going to continue.

There are also factors like Ordinals, BRC-20 and the upcoming halvening that are bullish for the Bitcoin price. It just seems with all the uncertainty around fed funds rates, inflation and the debt ceiling the price volatility is being squeezed by indecision in the market.

The hype of AI stocks and the recent outperformance of NVDA and the NASDAQ could be adding the lack of volume in the crypto markets as investors chase momentum.

Join us in discord where we will actively be following Bitcoin’s price action even when it’s dull and not volatile.

Possible Course of Action

• Short expecting a move to 200 day MA after debt ceiling is resolved

• Long if expecting US debt default

• Do Nothing and wait for price to retest bottom of the range or reclaim $30k

The Bulls’ Defense:

• Price above the 200 day MA

• Ordinals, BRC-20 creating usage and increased fees to miners

• US Debt Issue Is Unresolved Jun 1

The Bears’ Prosecution:

• Potential Head And Shoulders top

• US Debt Issue Could Be Resolved June 1

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A Closer Look

This section will be focused on taking a closer look on what Hal thinks is important to watch in the coming week.

This morning Hal comments on NVDA’s recent performance and how he’s playing it.