IN THIS ISSUE
- Ethereum makes a new all-time high!
- $BTC squeezes the late bears after a 28%+ drawdown
- Tesla takes profit on a portion of their Bitcoin holdings
- SOL and SRM shine during the recent market-wide pull-back
- Heatmap: $SRM, $AAVE
The short squeeze is ON this week for Bitcoin! Rising rapidly from the ~$47,000 lows of its recent correction, the King just tapped ~$55,000 this morning! Many who were waiting to “buy the dip” likely ended up selling into it for now. It’s amazing how willing we humans are to finally take profit when the market shows us a weak hand like it did last week. Many who wouldn’t dare sell their precious coins just one week prior, rushed the gate to sell into the steep 10-day correction that saw price plunge more than 28%.
Tesla hit the news again yesterday after news broke that they’d recently sold 10% of their Bitcoin holdings, locking in a profit of around $101 Million. There was a lot of buzz on Twitter in the wake of this announcement, but Elon quickly set the record straight, replying to a Portnoy tweet with the following:
The Tesla “news” appears to be a nothing burger and should in fact be a point of strength for cryptocurrency and specifically Bitcoin as they’ve helped prove that the liquidity is now sufficient for companies who want to hold it on their balance sheet as an alternative to cash.
I don’t expect we’ve seen the last of the bull this year. Far from it. I am excited to see what companies come out and announce they bought the dip once the dust settles. I’m seeing a few rumors about Facebook, but my guess is there will be more than one!
Before we get into the charts, I want to shed some light on the tragic turn of events taking place in India right now with regards to the Covid Pandemic. I don’t really watch the news anymore, but a colleague and friend of mine brought this to my attention today and I can’t help but be deeply affected by it.
India is in crisis. They’re experiencing the “worst nightmare” Covid scenario that we’ve been warned about from day one. Hospitals closing. Oxygen shortage. People dying in the streets. 300k new cases daily right now. It’s heartbreaking, and if you work in crypto, the probability that you know or work with someone who is living there is very high.
MATIC co-founder, Sandeep Nailwal, has put together a Covid Relief Campaign along with over 250+ individuals who are helping get funds through the regulatory hurdles, provide a full transparency report and most importantly, get the aid to where it’s needed most, as soon as possible.
One of the things I’ve always loved about Crypto is the community that has formed around it. The vision of a more decentralized and borderless world. A form of value that can move quickly and be readily available during a crisis when it’s needed most.
If you can afford to make a donation, great! If not, a quick engagement on Twitter by liking and retweeting this tweet would be a huge help! I’ll be making a donation later this afternoon!
I don’t consider this to be a grand gesture by any means. Like all of you, I have my own financial goals as a trader and I haven’t reached them yet, not even close. But I also have a strong sense of who I want to be in this life, and if contributing to this effort can help get oxygen to someone who’s likely to die without it, it’s a no-brainer for me. I’m proud to be a part of a community that rises to the occasion in any way they can when their fellow community members are in need.
Deep breath… And now to the charts
Bitcoin didn’t quite tag the 20-week Moving Average on this drop but if we see continued consolidation around these levels, it looks like we may get the tag we’ve been waiting for, sometime in May. That’s where I’ll be deploying the remainder of my dry powder if I get the chance.
BTC/USD 4 HR
The recent 2-day bounce on $BTCUSD is just that. A bounce. We have yet to retest any key levels to the downside, so rushing to take positions in no-mans-land will not provide traders with the kind of risk/reward that I look for in the market.
There are plenty of great-looking altcoin charts that have recovered from the dip and some that are even making new highs at the time of writing. As has been the trend of late, I will continue looking at altcoins for new setups instead of Bitcoin because I still think they offer the best opportunities right now.
Ethereum just made a new all-time high today! A quick dip down into the pumpchaser zone confluent with the bullish throwback at $2150 was all the bulls got for a dip. Price looks hungry for more and the local Fib extension up at $3,000 will be the next point of interest for me.
$ETHBTC is navigating the upper trendline of the ascending broadening wedge we’ve been tracking since early 2021. With volume rising and nothing but air on the horizontals until .055, a strong continuation this week looks highly probable. A move like that would give Alt vs. BTC pairs a huge boost. I’d expect to see a full liquidity cycle to follow where we see the strength trickle down from the majors to the mid-caps and eventually small & microcaps in the weeks that follow.
ALTCOIN & DEFI PERP
$4,000 was the level to watch on last weeks candle close, we tagged it, but thankfully saw a nice bounce prior to the close and a strong start to the week shortly after. I don’t see any reason to expect momentum to reverse on this chart until at least a tag of the Chaos PRZ up above at $6,096. Of course, a strong close above $5,000 this week would go a long way to solidifying that trajectory.
The DeFi perp is showing strength to start off the week, breaching previous candle body highs and pushing towards price discovery. Names like AAVE and COMP are picking up steam, so I wouldn’t be surprised at all if we see an ATH here very soon.
Heatmap #1: Serum (SRM)
Serum topped the leaderboard on Binance yesterday in what appears to be an echo rally in the wake of Solana’s SOL token taking the market by storm during the BTC dip. I usually wouldn’t include a ticker in the heatmap section for a coin that just made an ATH but the volume coming in on this one is insane, and there is a level at $8.50 that I think could serve as an opportunity to catch a continuation trade in the coming days.
We captured the SRM trade in this Twitter thread which I’m sharing here because it looks very similar to what I’m seeing on AAVE right now:
Heatmap #2: Aave (AAVE)
Aave may not have the “Solana” hype behind it that Serum does, but it’s undoubtedly one of the top DeFi projects in the space and is showing signs of aggressive buying through its Pump Chaser Zone consolidation vs. USD.
The BTC pair just broke out of the RLZ on rising volume. This is everything I like to see when looking for the next leg up. The DeFi perp looks hungry, and I think there is a good chance it’ll be well-fed through the month of May!
I’ll continue to keep you updated on all the hottest opportunities I can find in the space, until next time, have a great week, and whatever you do, always play from a position of strength!
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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.
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