A Bird, A Dog and A Man
Dogecoin rallies on news that Elon Musk buys Twitter
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.
Crypto News
People have been buying Dogecoin on news that Twitter has signed a definitive agreement to be acquired by Elon Musk
Dogecoin, ApeCoin See Higher-Than-Usual Liquidations in Volatile Trading (CoinDesk)
NFTs Stolen After Bored Ape Yacht Club Instagram, Discord Hacked (CoinDesk)
Chinese court rules marketplace guilty of minting NFTs from stolen artwork (CoinTelegraph)
Fireblocks expands institutional access to Terra's DeFi ecosystem (CoinTelegraph)
Intuit Sued Over Phishing Attack Targeting Trezor Crypto Wallet Users (Decrypt)
SEC Adds 'Misleading' Crypto Firms to Public Alert List (Decrypt)
Kraken Receives Abu Dhabi’s First Virtual Asset Exchange License (Blockworks)
Defiance Plans ETF That Bets Against Crypto Industry (Blockworks)
Allows you to buy and sell tokens using gas-less orders that are settled peer-to-peer among its users or into any on-chain liquidity source while providing MEV protection.
BTC Outlook
It’s perfectly possible we spend the entire month of May inside of this blue rectangle. The price has been trading downward in this downward channel marked by the orange lines since the end of March. Last week there was an attempted to rally to the top side of the channel and sellers came in quickly. The pink dashed line marking the 2022 low was not retested on this sell down. The price now looks trapped holding the bottom off the orange down channel and the pink dashed up channel as support while finding resistance at this solid pink up channel.
Essentially, uncertainty. The stock market has been selling off. Talks of inverting yield curves. But Hey! Elon bought Twitter and Dogecoin is rallying. All of the technical indicators here are pointed to mixed signals. All this being said having a higher portfolio weight in dollars is prudent here.
Possible Course of Action
Do nothing wait for price to hold the down trend as support
Short this resistance at the bottom side of this channel
The Bulls’ Defense:
Price rejected break down and now trying to get back in channel
The Bears’ Prosecution:
Price meeting resistance at bottom of channel
ETH Outlook
ETH has become BTC from a price perspective. Trading within +/- 1.5% ETH is tracking BTC nearly perfectly. That’s what this flag is showing. As always with crypto when the bull flag extends for too long and has too many spikes upward that fail to hold support, it turns into a Bart Simpsons and sells off back to the break out point. In this case that would be ETH losing -4% against BTC.
As long as NASDAQ is selling off, we expect ETH to underperform or match the performance of BTC. BTC has become correlated with tech and ETH is even more correlated. Note that ETH is struggling to hold onto $3000 which is a big round number. It needs to firmly hold this as support before there is any chance of going up again.
Possible Course of Action
Caution here as ETH looks weak against BTC
Long ETH bottom side of bull flag
The Bulls’ Defense:
EIP-1559 has burned $6,789,805,780 (2,142,996 ETH) so far. Supply constraints should continue to have a positive impact on price.
The Bears’ Prosecution:
Potential Bull Flag failure and breakdown (bart)
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