Important tests ahead
3 min read

Important tests ahead

Cryptic ball: volatility incoming.

What did I tell you yesterday? The current bearish backdrop isn't good and the chances of a bounce are low. Moreover, after $40k was lost, and with the current stock market carnage, it is time to expect $36k. Will it happen this week, though?

  • Quite likely. I mentioned that if the S&P 500 dropped another 2% on Tuesday (from Monday's lows) then that such scenario would be very likely. Well, the index is down 3% on the day but "only" lost 0.6% from that level.
  • What does that mean? That the day of reckoning is near. Bulls have one last chance to bid before the world's most-followed stonks print a dangerous lower low before the popular "sell in May and go away" saying comes into play.
  • The Nasdaq 100 already broke that support level (even Google's Alphabet [or vice-versa] suffered from weak earnings) and only a major bounce this Wednesday (eventually this week) could save the bulls on the short-term. Still, as also said yesterday, it's unlikely that Q2 will turn out green.
  • Back to bitcoin, let's see how the support zone from $36k to $37k behaves. We've been seeing institutions constantly buying the dip, but it's unclear how much liquidity will evaporate once TradFi panics!

In the meantime, I've settled in the Bahamas for the week and things look good. 2018 to 2019 were key building years for crypto. Just remember that this is a trader's market, especially for algos, and good things will come for those who wait!

Chart art: reckoning incoming.

Gamers are uniting against NFTs and the use of crypto to "build games that foster artificial scarcity and speculation, disproportionately benefit early adopters or wealthier players, or use energy-intensive and volatile tokens". That's what we get for being the wild west.

Three things: millions incoming.

Tweet tip: Elon incoming.

Elon, please save Twitter and crypto, not!

Meme moment: $40k incoming.

Just hopium though. 

FV Bank: meet us at Crypto Bahamas.

Come and meet our founders, Miles Paschini & Nitin Agarwal, at this exclusive gathering of investors & builders in the blockchain, digital assets and web3 space - hosted by FTX and SALT.

Get started: learn more about FV Bank.

Get started: download the B21 Crypto app!

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Our newsletter offers opinions and insights from analysts in the cryptoasset space. It is not intended to be investment advice, and should not be treated as such. You must not rely on its information as an alternative to financial advice from a qualified professional. Without prejudice, we do not undertake or guarantee that its information is correct, complete or non-misleading; or that the use of the guidance in the report will lead to any particular outcome or result.