Bed Bath & Bitcoin
Is the focus of retail investors on BBBY to blame for cryptos recent lul?
Cheat Sheet -
Support and resistance levels and our daily, weekly and monthly bias on BTC, ETH, OIL, ES, and NQ as well as our favorite altcoins.
Tether partners with top 5 accounting firm BDO for reserve attestations (The Block)
Flashbots to hasten open sourcing of its MEV-Boost relay code (The Block)
PolySwarm launches token rewards to crowdsource cybersecurity with crypto (The Block)
Crypto Exchange Gemini Introduces Staking Support for US Investors (CoinDesk)
South Korea's Money Laundering Watchdog Flags 16 Crypto Firms for Operating Without Registration (CoinDesk)
Cash-Backed HUSD Stablecoin Loses Peg, Drops to $0.92 (CoinDesk)
Ripple CTO lashes back at Vitalik Buterin for his dig on XRP (CoinTelegraph)
A16z-backed Real Estate Firm to Dabble in Crypto (Blockworks)
Alleged Crypto Ransomware Money Launderer Extradited to US (Blockworks)
Dapper Labs Opens NFL Version of NBA Top Shot to the Public (Decrypt)
Ukraine Spent $54M in Crypto on Drones and Other Military Expenses (Decrypt)
Bitcoin has been hanging in limbo while the market is focused on other things like Bed Bath & Beyond’s apparent short squeeze and the Ethereum Merge. Or.. maybe these aren’t the reason for Bitcoin’s recent underperformance of technology (bathroom) stocks and altcoins. The fact is still true that it is under performing. The key level we keep watching is the May 12 low around $25.5k. Notice that this is right in the middle of the region we identified last week where we thought sellers would come in. In general the whole situation looks unattractive and that’s probably why few are buying it. A potential bear flag, under performance and many other exciting stories for people to be following. This gives the feeling of continued consolidation and this means the price will likely move sideways in this range between $20k and $25k. If it ever moves above $25k this would be a sign to get long.
Possible Course of Action
Do nothing and wait for $25k to act as resistance or hold as support
Do nothing and wait for a retest of $20k
The Bulls’ Defense:
CPI print under expectations
Stocks rallying, ETH rallying, BTC plays catch up
The Bears’ Prosecution:
Potential Bear Flag
May 12 wick may act as resistance
A Closer Look
In yesterday’s weekly update Hal talked about a potential price move in ETH to look out for. Today’s closer look will focus on ETH/USD and ETH/BTC.
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