SEC Went All In, So are We

Uncharted Lite 6

Key Takeaways

• Bitcoin’s trading channel is getting squeezed between $26.3 and $26.7k. Liquidity is low, beware of the edges of the channel, it doesn’t take much to move the price.

• The short-term view suggests further consolidation, but the cross-asset structure is strengthening our $35k outlook.

• The overall crypto market lacks momentum, but altcoins suggest we are close to a bottom.

• There is one particular coin that shows interest (see below) and you have the opportunity to be a frontrunner… if you’re willing to bear the risk.

Reads we like and recommend:

CryptoCon

dive into “A Lower High is In, What Comes Next? and from

Nik Bhatia

a look into Jerome, Our Skipper.

• Despite the retrace toward the neutral/bearish quadrants in the State of the System, it's been a resilient week for crypto. The risk of a pronounced drop, yet contained to 10%, is relatively high as bitcion and crypto lose momentum.

• BTC continues to consolidate within the $25.4k and $27.3k range, but the channel is getting tighter ($26.3 - $26.7k) as fewer players are actively trading or willing to take on the risk. A break below $26.3k could trigger slight bearish momentum and drive us to the bearish quadrant, while a break of $26.7k would trigger the opposite effect. We’re at the middle of the range, be patient.

• The Nasdaq has made a comeback, pulling the SP500 higher. The FOMC meeting is next week, and the market is feeling quite confident that the Fed will “skip” (aka. no pause, no hike, but leave room for a hike in July) this meeting. This narrative has created a demand zone for US equities but, unfortunately, the effect has not spilled over to crypto.

• We are confident that the move (when extended) will spill over to crypto. The DXY shows weakness as it builds bearish momentum (MACD bearish crossover). If the Fed “skips” this meeting, rates and the DXY will have less fuel to continue climbing higher. This would alleviate the pressure off BTC. Our bullish mid-term outlook is getting stronger.