Will ALTs follow BTC’s big push?

22.06.2023

Dear traders,

After a big bullish push into the 30k resistance, the main focus now shifts to Altcoins and whether they will catch up with BTC.

Jake
TOP Trader

BTC pushed higher into the 30k resistance, showing momentum in the bullish push. If the push slows down, we could see a retracement back to the support at $28,750, followed by a continuation towards new highs.

ETH is back within the channel and is currently trading below the resistance at $1,930. Strength is returning to ETH after the significant push from BTC, and the momentum could shift towards ALTs, leading to a push upwards.

XRP still hasn’t broken the $0.5 mark and is showing signs of slowing momentum, suggesting a possible trend reversal at this point. We are still waiting for a bigger push to break the resistance at $0.54.

LINK is showing momentum and has bounced up from the $5 support towards the $5.85 resistance. If the resistance is not broken on the daily timeframe, this could be a retest of the drop, potentially leading to a downtrend candle. However, it is still a good option for spot buying and holding.

SOL has pushed up towards the resistance at $17.5 and needs to break it for a larger bullish continuation. If the resistance is not broken, this could be a retest of the drop, leading to further downward movement.

EOS has pushed above $0.7 but has not managed to hold above that level. A bigger push is still needed to break the larger resistance above. Nonetheless, it is still a good option for a long-term spot buy.

LTC has reached the resistance at $88, which was the breaking point before the drop. It needs to break above and hold for a larger push and bullish continuation. However, in 40 days, LTC will experience a halving event, suggesting a significant price increase due to a reduction in mining supply. This presents an excellent long-term investment opportunity!

The DXY is still struggling with the support at 102, and a drop below could trigger a larger decline, significantly weakening the US dollar.

Crypto/stock daily news:

TRADFI’S TAKING OVER CRYPTO

Crypto reminds me of middle school lunch right now.

Every table in the cafeteria has a different clique. There’s…

The “rich kid” table = BlackRock, Fidelity, and Deutsche Bank.

The “cool kid” table = Citadel & Charles Schwab

The “nerd” table = Coinbase, Binance, Bittrex, and all the other crypto companies

And then, there’s the school patrol = Gary Gensler and the SEC. They just roam around from table to table pretending to be the Law of the School.

And right now, we’re seeing a bit of a cafeteria industry turf war.

The SEC has clamped down hard on crypto giants. Now, TradFi’s filling the gap:

Citadel, Charles Schwab, & Fidelity launched a new crypto exchange yesterday

Blackrock filed for a Bitcoin ETF; Fidelity might be next

Deutsche Bank wants to offer crypto custody services

Roaders… welcome to the TradFi Takeover.

Let’s break it all down.

1/ TradFi’s new crypto exchange

Citadel (mega-hedge fund,) Charles Schwab (hotshot broker,) & Fidelity (mutual fund company) teamed up to launch a new platform – EDX Markets.

Here’s everything you need to know:

It won’t hold your crypto. It’ll operate like a stock exchange. Retail brokerages will execute trades. The platform will just be where prices are agreed upon.

It’s geared toward institutional investors. Not Joe Shmoe in his basement.

And it’s only offering Bitcoin, Ether, Litecoin, & Bitcoin Cash.

2/ Big asset managers want to offer crypto services

In the last week, we’ve seen… checks notes:

BlackRock file for a Bitcoin ETF

Deutsche Bank (~$1.4T AUM) apply for a license to run crypto custody services

Invesco (~$1.5T AUM) file for a Bitcoin ETF

WisdomTree (~$87B AUM) file for a Bitcoin ETF

Rumors that Fidelity will apply for its own Bitcoin ETF

We’ve gotta reiterate how big of a deal it is that a finance heavyweight like Blackrock (with ~$10T in AUM) is getting in on this. And at this particular point in time.

Especially with Grayscale’s (digital asset manager’s) high-profile lawsuit against the SEC. The agency has rejected its Bitcoin ETF application more than my 7th-grade crush.

It’ll really be an eyebrow-raiser if the SEC actually approves BlackRock’s Bitcoin ETF and not Grayscale’s.

Everyone convinced the government’s trying to kill crypto (cough Operation Chokepoint 2.0 cough) would have another big talking point.

So, now for the million-dollar question: Is all of this good or bad?

On the one hand, TradFi could legitimize crypto and open the door for more investors (all about that “M” word: mass adoption.)

But some critics are calling this a full-fledged, orchestrated takeover. They’re worried about centralized entities like Blackrock controlling technology that should be decentralized.

Either way? Crypto companies like Binance & Coinbase won’t be the coolest kids in school anymore.