Daily Pump & Dump | May 31, 2022 Crypto Market Report
The daily pump & dump is a weekday update on the crypto market providing you with an abbreviated breakdown of price action related to Bitcoin, Ethereum, and other trending altcoins.
- Bitcoin reclaims $30,000 over memorial day weekend
- How Ethereum could lose its head against BTC
- What’s going on with Cardano?
Bitcoin Makes Memorial Day Weekend Memorable
Over the US Memorial Day holiday, bulls took advantage of thin order books and low volume, pushing the price per BTC to more than $31,500 at close. Of note, the daily candle closed above the upper Bollinger Band. Bulls must stampede with high volume within the next 24 hours or are at risk of a pullback to at minimum the middle-SMA at around $29,766.
Will bulls follow through? | Source: BTCUSD on TradingView.com
A strong close above $32,000 could lead to continuation to targets between $34,000 and $38,000. Tonight is also the monthly close for BTCUSD. A close above $29,000 should keep the top cryptocurrency well above support, while closing above $33,000 would be a healthier sign of further recovery ahead.
Related Reading | LUNA Aftermath: Total Crypto Market More Oversold Than Black Thursday
Ethereum Losing Its Head (And Shoulders) Against BTC
The LUNA debacle has significantly hurt altcoin sentiment. The associated selloff and panic took many top altcoins down by 80-90% across the board. Ethereum held up well by comparison to other altcoins, dropping only 64%. Bitcoin fell 62% in total.
Ethereum could head down further against BTC | Source: ETHBTC on TradingView.com
The long-running outperformance on the ETHBTC trading pair could soon swing further in favor of the top cryptocurrency as BTC dominance strengthens. The ETHBTC trading pair also appears to exhibit a head and shoulders pattern at risk of confirmation and further breakdown. The target would be close to the 0.04 level.
Cardano Surges 40% In 48 Hours, But Why?
Knife-catching is never a recommended strategy, yet traders everywhere are regularly tempted by this high-risk technique. The reason is because there can be significant reward for getting it right. Cardano has been substantially oversold, falling a full 87% from over $3 to the 30-cent range.
Was the R:R too good to pass up? | Source: ADAUSD on TradingView.com
Because the altcoin was hit particularly hard, it now represents a strong risk versus reward setup. Bulls who missed their chance on the way up the last time around, could see another 8x if the altcoin revisits prices set late last year.
Related Reading | Hammer Time: The Bullish Signal That Could Save Bitcoin
Although the reward is high, so is the risk. During the 2018 bear market, after plummeting 90%, ADA then crashed another 78%. On Black Thursday, ADA reached one-cent.
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Featured image from iStockPhoto, Charts from TradingView.com