IN THIS ISSUE
Bitcoin broke to another all-time high over the weekend before a conveniently timed pullback occurred right at the weekly open in what “appeared” to be a knee-jerk response to the news out of India that the Government there is considering restrictions on crypto… Again…
This isn’t the first time India has threatened to take action against the cryptocurrency industry. The “India Ban” FUD has been recycled a few times in recent years and ultimately amounted to blips in local price action with no real follow-up. Will it be different this time?
Union Finance Minister, Nirmala Sitharaman has said that “My view on this is that of course the Supreme Court had commented on cryptocurrency and while the RBI may take a call on official cryptocurrency … from our side, we are very clear that we are not shutting off all options.”
So once again, news that India is going to threaten the well-being of these emerging markets was likely being overblown and used as a tool to move the market back down to pre-weekend prices. The timing and content of the report from Reuters were just all too convenient to think otherwise.
The market as a whole is consolidating still after the price shock from early March took the wind out of the strong uptrend we’d been enjoying. This is to be expected and not to be confused with a trend reversal. There does appear to be a lack of volume on the higher timeframes to support new highs, so for now, we may be in for some sideways, slow grind action while the market recharges for the next strong impulse.
$BTC showed a complete lack of conviction on the recent push to highs over the weekend. This should be expected on weekend price action that generally produces only low volume “fakeout” moves in price. Only a weekly close BELOW $45,000 would be cause for alarm where the bullish trend on the weekly is concerned.
$BTC Dominance remains trapped between the 60-63% range that has developed through Feb/March. If $ETHBTC breaks upwards here, we can look forward to a “bullish” resolution on the dominance which could drive more speculators towards their favorite altcoins throughout Q2 2021.
$ETHUSD didn’t break the highs along with BTC and is currently having trouble resolving the 8.77 Chaos PRZ on this chart. Parked in the Short RLZ, this is a risky place to be taking long bets on the King of the altcoins. I’m expecting to see more consolidation in this range. Fib-Pong a likely pattern this month.
$ETHBTC is parked in HTF Pump Chaser Zone but trading below the 20-week SMA right now, which makes an overtly bullish thesis difficult to hold on to. If the .055 resistance is the next major target, surely waiting for bullish resolution of this SMA isn’t a bad idea.
ETH/BTC 4 HR
$ETHBTC 4hr – Zooming in, there is plenty for the bulls to get excited about however, as Ethereum has confirmed a local trend reversal after a dip into the Reload Zone and a bullish breakout on volume. Early signs that a bullish reversal could be in the works!
The Altcoin Perp is holding up a little better, having resolved the 4.669 Chaos PRZ bullishly. However, the climb these last couple of weeks on lowering volume speaks to the formation of a “bear flag”, so caution is warranted for anyone who is trading against, and looking to preserve the USD value of their portfolio.
DEFI PERP WEEKLY
The DeFi perp was unable to resolve the 4.669 Chaos PRZ last week and looks destined for more consolidation in the coming weeks. Volume has tapered off and the lower time frames are looking “heavy” this week.
$ALPHA / $BTC is down in the reload zone showing early signs of reversal after a strong dip in the wake of bullish market structure confirmation through the March open. Leveraged yield farming is coming to BSC according to Tom Shaughnessy.
$ALGO/BTC saw a breakout in volume this week right off the .702 sweet spot. You can see on this chart how well the pair is respecting the Chaos PRZ and RLZ fib areas. This is an area where I have to take shots to the long side if I want to call myself a trader.
BitClout is launching today at 3 pm EST. This project was shrouded in secrecy right up until its stealth launch last Friday where it appears, user demand, crashed the site in the first 2 hours of being live. I put out a full-breakdown video yesterday to share what I know.
Have a great week, and whatever you do, always play from a position of strength!
The following commentary is provided for informational purposes only and may not represent the views of Hxro Games Ltd. or its affiliates, and should not be viewed as legal, tax, investment, financial or other advice. Digital asset transactions are inherently risky, and you are fully and solely responsible for evaluating your purchasing decisions at your own risk. Past performance is not indicative of future results.
©2021 by Hxro Labs