6/29/2021
Bitcoin jumps 5% on the day as former bitcoin bear bank, Morgan Stanley has purchased nearly 30,000 shares of the Greyscale Bitcoin Trust (OTCMKTS:GBTC) which appeared in their recent SEC filing causing the crypto to fly 6.15% this morning. They are one of the first banks to hold and offer crypto to their clients as the adoption of bitcoin becomes more and more prevalent. Additionally, Cathie Wood, founder of Ark Invest, has filed to the SEC to offer a Bitcoin ETF in the midst of a crypto craze taking place in the United States and the rest of the world.
Our outlook
Most of the crypto market seemed to have shrugged off these worries of countries tightening regulation as it does serve as the market becomes more recognized. The cycle from bullishness to bearishness is very harsh in the crypto market, so you never see mild changes in direction. Bitcoin's volatility is usually severe, but I have a bias that it will go to the upside while the China crypto news dies down.
Trade Setups
BTCUSD
Bitcoin has been able to successfully break above a double top and is now testing resistance on the 200 SMA. This recent move above resistance is a key indicator since the pair can now come down to this level for support. If price continues to climb, extra resistance sits at the $37,800s.
XLMUSD
Stellar did break out of its trend line and is heading towards resistance on the 4H. New support lies around 0.272700 or the recently-broken falling trend line. And the big resistance line is around 0.298946.
ETHUSD
Ethereum is now testing resistance on the 4H chart and looks like it has strength in momentum to test the 200 SMA. New support lies around $2,042, and big resistance is much higher around $2,837.
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