Bad news on the stock market. Will crypto follow the drop?

28.06.2023

Dear traders,

Fed Chair Powell says there will be strong rate hikes in the coming months, and that’s not what we want to hear.

Jake
TOP Trader

BTC is slowly losing momentum, and in the coming days, we could see the price lower and dropping to support at 29-28k. However, there is still a need for a significant increase in volume demand to provide strong upward pressure.

ETH is losing momentum and slowly approaching $1830, which is a decisive point of breaking down. It needs to hold above this level to continue pushing for higher prices. Currently, it is consolidating before the next leg up or down.

XRP is losing momentum, and $0.46 is just a matter of time. We hope it will find some support. If it manages to maintain this position, it could potentially move higher towards a stronger resistance at $0.54.

LINK has touched support at $5.85 and is slowly losing strength. It now needs to sustain its position above this level for continued bullish momentum. However, it still presents a good opportunity for spot buying and holding.

SOL has dropped to support at $15.8, and it needs to hold above it, or the drop will be fast. However, it is currently showing signs of slowing down in its upward movement, and there is a possibility of a breakdown if the channel does not hold. If the resistance is not breached, a retest of the drop could occur, leading to further downward movement.

EOS has broken the uptrend red line and shows slowing momentum. Dropping to $0.662 is just a matter of time. A more substantial push is still required to surpass the higher resistance. Nonetheless, it remains a good option for long-term spot buying.

LTC has dropped under the $88 support and broken to $85, showing slowing momentum. It needs to hold this level, or the next leg down is loading. To maintain bullish continuation, it now needs to retrace above $89. Additionally, in 30 days, LTC will experience a halving event, which suggests a significant price increase due to a reduction in mining supply. This presents an excellent long-term investment opportunity!

The DXY is showing recovery momentum and is currently attempting to break above 103 to regain its upward movement.

Crypto/stock daily news:

THE STATE OF CRYPTO

Let’s talk about the state of crypto. *dun dun duuuun*

But instead of throwing a boring 60-page PDF at you, we’re gonna do it in 5 pictures.

Why? Cause pictures make everything easy.

And we like to make our industry reports the same way we make our rice – quick, easy, and in under 90 seconds. (Shoutout to Uncle Ben.)

Alright, let’s dive in.

1/ BTC IS DECORRELATING FROM TECH STOCKS

“If tech stocks pump, so does crypto. If tech stocks bleed, so does crypto.”

This has been a tale as old as time. But ladies & gents, 2023 has been different…

Bitcoin’s correlation with the Nasdaq 100 has been under 50% for almost the entire year.

This month, the correlation plummeted to 3%, a three-year low.

This is big as crypto attempts to separate itself from other traditional assets like tech stocks, gold, etc. And so far this year, it’s doing a good job…

BTC: +84% YTD

ETH: +58% YTD

NASDAQ: +23% YTD

S&P500: + 13% YTD

We’ll see if the trend continues into the second half of the year.

2/ DECENTRALIZED FINANCE IS BOOMING

Over the last 2 weeks, the DeFi market cap has jumped 14%, from ~$41.5B → ~$48B.

Why is it up? Because centralized finance companies have been in trouble.

Coinbase and Binance (U.S.) got sued. Others are shutting down. It’s been a bloodbath.

But everyone knows one person’s pain = another person’s gain.

And decentralized finance has been seeing all types of gains. Users are up, trading volume is up, DeFi token prices are up, etc.

Here are some of the biggest winners:

Uniswap (UNI): +21% over the last 30d

Aave (AAVE): +26% over the last 30d

Conflux (CFX): +30% over the last 30d

DeFi tokens have all been riding the GainTrain™.

*static noise*

3/ THE BEST DAY TO TRADE BTC IS TUESDAY

I’ve always wondered two things:

Why do my socks keep disappearing during laundry?

What’s the best day to trade BTC?

The first one is still a mystery. It truly could be the Eighth Wonder of the World.

The second one is: Tuesday. BTC average returns are the highest on that day, by far.

Turns out, the club isn’t the only thing ?going up, on a Tuesday?.

P.S. – looks like Monday is the worst day to trade BTC.

Some people have the Monday blues, crypto investors have the Monday reds.

4/ THERE’S MORE ETH STAKED > ETH ON EXCHANGES

It’s official. There is now more ETH being staked than ETH on exchanges.

ETH being staked: 23.4M ETH

ETH on exchanges: 23.3M ETH

It’s a small lead, but this is a bullish sign for ETH.

People staking = looking to get yield, so most likely a long-term holder.

People holding on exchanges = ready to sell, so most likely a short-term holder.

5/ THE TRADFI TAKEOVER IS COMING

In case you’ve missed it, all the big traditional financial giants have joined the crypto party over the last few weeks.

BlackRock. Fidelity. JPMorgan. My piggy bank (small, but mighty). Etc.

Here’s a cool visual outlining who’s making moves, what moves they’re making, and (most importantly) how much AUM (assets under management) they have.

In total, these financial behemoths have ~$27 TRILLION in AUM.

Funny how it works…

First they ignore you. Then they laugh at you. Then they fight you. Then they join you.