Raise The Roof
“I think at the end of the day we do not have a debt default,” House Speaker Kevin McCarthy
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
Ripple Starts Platform for Central Banks to Issue Their CBDCs (CoinDesk)
U.S. Bitcoin Corp to Host 150K Crypto Mining Rigs (CoinDesk)
Miami Bitcoin Conference Flags Attendance Down by Half as ‘Crypto Winter’ Drags On (CoinDesk)
CFTC chair says DeFi crypto exchanges will be regulated even if they are 'just code' (The Block)
Grayscale: SEC staff believe Filecoin ‘meets the definition of a security’ (The Block)
Italy sets aside millions for workers at risk of AI replacement (CoinTelegraph)
Coinbase Cloud plugs into Chainlink oracle network to improve smart contract reliability (CoinTelegraph)
Index Coop’s Money Market Index Wants to Diversify Your Stablecoin Holdings (Blockworks)
Voyager Customers May Get 35% Return, as Judge Approves Liquidation Plan (Blockworks)
DeFi Token Synthetix Soars 10% as Community Mulls PEPE Market Launch (Decrypt)
Tether to divert up to 15% of profits into Bitcoin in ‘stability’ push (DLNews)
Why Ethereum is so dominant — and why it’s not going anywhere (DLNews)
The markets continued to be dull this week until news hit the street that the debt ceiling debate may soon be resolved. Apparently, statements such as, "“The only thing I’m confident about is now we have a structure to find a way to come to a conclusion,” from Senator McCarthy on CNBC gave the signal for risk assets to rally.
Well, sort of, the Nasdaq continued to be the top performer compared to Bitcoin, Gold and the S&P 500. ETH, which normally leads the Nasdaq, has also been lagging behind in the recent rallies.
Looking at the chart Bitcoin is still in a territory where it could easily pull back to the 200 day moving average near $22.5k. The price is currently testing the neckline of the head and shoulders pattern we identified last week. The price has already fallen below the neckline so this current retest is as resistance. If the price cannot break above this resistance in the next few trading days the probability becomes high for a move down to $22.5k.
If Bitcoin can push higher this week and reclaim the 50 day moving average that would be a case for a retest of the 2023 highs and possibly a move higher. It’s likely the price continues to grind somewhat sideways until a final decision is made around the US deb ceiling which must be decided June 1st. More indecision around the issue could lead to more volatility and more downside.
Join us in discord where we will actively be following Bitcoin’s price action.
Possible Course of Action
Short expecting a move to the 200 day MA (stop loss 50 day MA)
Long if price rises above 50 day MA and holds as support
Do nothing and wait for Debt Ceiling decision
The Bulls’ Defense:
Price above the 200 day MA
The Bears’ Prosecution:
Potential Head And Shoulders top
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 continues to follow the NASDAQ and checks in on everyone’s favorite memecoin, PEPE.
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