The Crypto Week in Summary
Bart Simpson arrived on BTC charts twice this week amid the opening of Consensus 2022, the introduction of a far-reaching US crypto bill, and another milestone in Ethereum’s merge to Proof of Stake (PoS).
At a glance...
- Latest step in Ethereum’s merge to PoS went through without a hitch
- Crypto Twitter debated all aspects of Lummis-Gillibrand crypto bill
- Kenya’s largest electricity producer is partnering with BTC miners
- Hollywood legend Anthony Hopkins leaned into NFTs
- Crypto bank headed by Caitlen Long is suing the FED
Top Market Trends:
- Ethereum Ropsten testnet underwent a successful transition from PoW to PoS as one of the final tests leading up to the ETH Merge slated for Q3.
- A bipartisan crypto bill was introduced by US Senators Lummis and Gillebrand to govern crypto as commodities, require DAOs to register, and create a FinCen sandbox.
- Kenya’s biggest electricity producer, KenGen, will provide excess geothermal energy to bitcoin miners. KenGen’s power is currently 80% renewable energy.
- Reuters published a major FUD piece on Binance and Founder CZ published their full correspondence revealing Reuters use of misinformation.
The facts are clear. According to Chainalysis, just 0.15% of ALL crypto transactions in 2021 were associated with some type of illicit activity. The UN estimates 2-5% of fiat (cash), worth $800B to $2T, was associated with some type of illicit activity. Let’s be real.— CZ 🔶 Binance (@cz_binance) June 7, 2022
Movers and Shakers
Bitcoin (BTC) finally turned around after surviving a record 9 consecutive red weekly candles. After a midweek spike and a Bart Simpson-style range and crash, BTC established a new support level at $30k. Analysts seem to agree that we are still in an accumulation phase for BTC, possibly the “Accumulation Phase of a Lifetime”.
You asked for a store for value, didn't you? pic.twitter.com/sRWwrV7QZO— Dylan LeClair 🟠 (@DylanLeClair_) June 9, 2022
- Relative Strength Index (RSI) for Bitcoin diverged to hit a 1-year low at 34 while Bitcoin dominance rate hit a 1 year high of 47. The combination could possibly signal a bullish trend reversal.
- A BTC price squeeze is charting a bullish reversal ascending triangle pattern. If validated, we could see Bitcoin push up through $38k. If not, we may see more selling off if price falls below the triangle's trendline support line.
On the 2-hour chart, we can see Bitcoin trading sideways. It dropped below it’s Fibonacci Pivot point (P line in green) after failing to break through R1 (first line of resistance). The most expected output would be a reversal above S1 towards the pivot point mid range ($30.5k). Otherwise, the next bearish target would be S2 at $28.6k
As shown on the 2-hour chart, BTC kept moving in a tight range all week despite a failed tentative to break through the resistance near $32k. This weekly candle appears to form again an inverted pattern hammer, erasing the small gains of the previous week.
Altcoins on the Move
It was a choppy week for alts but most ended up where they started. Chainlink (LINK) and Helium (HNT) posted significant gains while Ethereum (ETH) has been consolidating around the $1800 price line. Cardano (ADA) experienced a nice 16.3% pump on news of Grayscale allocating more ADA to one of its funds.
- Tron (TRX) announced it would overcollateralize its $USDD stablecoin, including over 14,000 Bitcoin, in light of Terra’s recent algo stablecoin fail.
- The ApeCoin (APE) community voted to remain on the Ethereum network after a controversial token launch and amid concerns over high gas fees.
- Grayscale increased its Cardano (ADA) allocation to 32.33% in its smart contract Ex-Ethereum fund.
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- In legal news, Custodia crypto bank has filed a lawsuit against the FED, the SEC is investigating the $BNB sale, and Gemini Trust is getting sued over a $36 million hack.
- In NFTs, Yuga Labs confirmed $360k BAYC Discord hack, Illuvium sold $72 million in digital land, Steph confirmed 3rd DDoS attack, and Cinema legend Anthony Hopkins leaned into NFTs.
- New York Dept of Financial Services said stablecoins must be backed by 3-month bonds while NY governor hesitates to sign a NY bill banning PoW mining.
- Brazilian Football Powerhouse São Paulo FC teams up with an exchange to let fans buy tickets using Bitcoin.
Spotlight on: Optimism (OP)
Optimism is the industry’s second largest (by TVL) Layer-2 solution for Ethereum scaling. Their main innovation, Optimistic Rollups, enable immediate transaction confirmations with the security of Ethereum’s consensus mechanism.
- Optimism recently launched their OP governance/utility token and staged a somewhat controversial airdrop.
- For one, they inadvertently sent 20 million OP (worth $15 million) to an incorrect address for a liquidity provider. Before they could address the issue, a hacker got a hold of the tokens, who has since moved 1 million OP to Vitalik Buterin's wallet and offered to return more.
- Some of the 250k eligible community members didn’t get their airdropped tokens, and many of them sold immediately, tanking the price.
Pro tip: Accumulator Bot
Accumulation phases are perfect for accumulating Bitcoin and Quadency’s Accumulator Bot gives you an innovative way to dollar cost average (DCA) your crypto buys at integrated exchanges. A “stop trigger” and a “don’t sell above price” feature keep you confidently buying crypto through volatile times.
We Looked Into: Will the new proposed crypto bill change the status quo?
No more SEC oversight of Crypto?— Quadency (@quadency) June 8, 2022
That is what the new proposed US Senate bill would do.
A thread 🧵 pic.twitter.com/r3tigJyQbb
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Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.