He Broke Even
Bitcoin rises above MicroStrategy's entry price
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
Are you new to Foot Guns? Learn how to read the cheat sheet here.
What We Are Watching
We further breakdown our case for these cryptos here : What We Are Watching
Crypto News
Bitcoin, Not Ether, Builds Crypto Market Dominance Ahead of Ethereum's Shanghai Upgrade (CoinDesk)
Everything you need to know about the Ethereum Shapella upgrade (The Block)
a16z unveils new crypto index that shows adoption outpacing price performance (The Block)
US SEC seeks to expand its Crypto Assets and Cyber Unit(CoinTelegraph)
Bitcoin mining firm Bitmain reportedly fined for tax violations in China (CoinTelegraph)
South Korean Authorities ‘in the Process’ of Freezing Do Kwon’s Assets (Blockworks)
Chokepoint 2.0: Efforts To De-bank Crypto Highly Effective (Blockworks)
‘Sandwich the Ripper’ MEV Exploiter Joins Tether’s Graveyard of Blacklisted Addresses (Decrypt)
Gaming Hardware Giant Razer Launches Web3 Incubator (Decrypt)
Lebanon’s crypto brokers dodge turmoil and masked gunmen to serve clients (DLNews)
BTC Outlook
After selling off into the weekend, Bitcoin’s volatility dwindled on Sunday with an explosive move up on Monday. This is technically a bullish engulfing outside reversal with Sunday’s daily candle going outside of Saturday’s followed by a bullish daily candle on Monday that engulfed the entire last few weeks of selling.
The move up also reclaimed MicoStrategy’s break even price around $29800. The price is now within the range of consolidation that occurred in May and June 2022. It is likely Bitcoin will reconsolidate in this range again as old resistance levels tend to become new support levels. Outside of this consolidation range the next major resistance is not until $33k which represents the Jan 2022 low. This also coincides with the Monthly resistance level given by the cheat sheet.
One should be cautious with how high Bitcoin is trading above its 50 day and 200 day moving averages. If you are long from much lower prices consider taking profits or setting tighter stop losses. If Bitcoin is in fact in a bull market there will likely be trips to retest the 50 and 200 day moving averages. You can see exactly this behavior in March, and how profitable an opportunity it was to buy near the 200 day MA.
Join us in discord where we actively discuss markets and where Bitcoin could be headed next.
Possible Course of Action
Short near $33k expecting retest of $29.8k or even 50,200 day MA
Wait for a retest of 50/200 day MA to get long
Do nothing and wait for further consolidation’
Take profits if long from far below
The Bulls’ Defense:
Price above the 200 day MA & 50 day MA, Saylor level ($29.8k)
The Bears’ Prosecution:
CPI tomorrow, potential weakness in US Equities
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 checks in on two altcoins and their relative performance to Bitcoin.
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