Cryptic ball: let's wait and see.
What a nice weekend in anticipation of the end of the month. As you can see below, bitcoin finally left the range I've charted over the past weeks and is trying to break out of $32k. Will it succeed and ensure a dripping June sets all in tune?
- First and foremost, and as explained Friday, sentiment remains extremely bearish. It's positive that bears didn't win in such an environment and that crypto managed to follow the relief rally experienced by stocks last week.
- Still, it's curious to see that ETH and most L1 alts just managed to return to the previous tight range they lost last week! In other words, these alts are still in an even more clear downturn than bitcoin is - and that's not ideal.
- However, at least five alts in the top 100 have pumped 20% to 50% today, from WAVEs and Axie Infinity's AXS to Helium's HNT and Thorchain's RUNE, without forgetting AAVE. This is the kind of excitement bulls needs right now.
- Why? Because it should ensure we at least close Tuesday on a positive note and gain the necessary energy to start June on the right foot. Still, it's too early to tell recovery is here as this relief rally can trap bulls before the next leg down.
- After all, "BTC (and crypto) just printed 9 consecutive weekly red candles for the first time in history" so it's only normal that we recover this week. Also, remember that the Fed's FOMC meeting on June 15th will stir things up.
Let's wait a bit more to see how equities evolve and if crypto is able to recover its correlation with stonks. In the same way crypto experienced a bottom in May 2021, maybe May 2022 will also mark the bottom for the stock market. Maybe!
Chart art: let's breakout and be free.
Three things: let's hedge that degree.
- Ming Zhao shares how a day in the life of a hedge fund analyst is.
- Raoul Pal shares "a few insights on why the Nasdaq is cheap (even if there's room to price in a higher chance of an economic recession ahead)"
- RMG shares a "thread on how to hedge your portfolio with futures instead of selling all your spot". Just don't forget the fees.