BTC has been consolidating between the 103-104k level for a few days and the daily RSI and StochRSI have been overbought for the same time. The Fear and Greed index is also at 75 which means most traders are getting euphoric and a cool-off may be warranted. It's also the weekend which increases the volatility. This is strictly a hedge trade as I can't ignore the strength but don't want to be caught offsides in case things turn by next week. Stop loss is above ATHs. {spot}(BTCUSDT)
1. Market Overview - Global Market Cap: 3.48 (previously 3.39T) via Coingecko - Top Movers: PI, WIF, KAS, PEPE, FLOKI, XMR
2. Altcoin Market Trends 📈 - Memes and L1s continue to outperform as ETH maintains its run, signaling a potential alt season as long as Bitcoin Dominance continues to decline. I'm watching the weekly 50 EMA on ETH, as a close above that at 2580 would signal a further run. Look for alts that are exhibiting strength here, especially if/when we have a pullback, as those should pump the hardest afterwards.
3. Key News Headlines 📰 - Regulatory Updates: US Senate fails to advance crypto bill amid Democratic opposition - Partnerships or Integrations: Mark Zuckerberg eyeing stablecoin partnership to power Meta’s crypto integration - Major Developments: The United States cuts tariffs on Chinese goods from 145% to 30% for 90 days and China lowers tariffs on the US from 125% to 10% for 90 days
4. Upcoming Events ⏩ - May 13th CPI data - May 15th PPI data - May 27th-29th Bitcoin Conference, Las Vegas - May 30th FTX starts $11.4B of creditor payouts
5. Summary ✍️ The market has had a nice rally the past few days amid positive news surrounding the recent US x China tariff negotiations and Trump signing an executive order to cut prescription drug prices by up to 80%. This, coupled with easing tensions in the Middle East have pushed investors to be more "risk-on" which is reflected in the heightened Fear and Greed index. I'm still expecting some kind of pullback this week as many are in a stage of euphoria but I can't ignore the strength of the market. As they say, "the trend is your friend", so while I'll still take some scalp shorts, my aim is still to buy strong performers on any pullback.
1. Market Overview - Global Market Cap: 3.39 (previously 3.18T) via Coingecko - Top Movers: PEPE, ENA, VIRTUAL, UNI, ETH
2. Altcoin Market Trends 📈 - Alts had an amazing run recently with sectors such as AI and memes outperforming. This came from the positive developments surrounding the FOMC meeting, Trump's tariff negotiations with multiple countries, and the growing institutional interest the from Robinhood's EU expansion/ETF rumors). We also had ETH break above the coveted $2k level which is always a precursor to alt season.
3. Key News Headlines 📰 - Regulatory Updates: Celsius Founder Alex Mashinsky Sentenced to 12 Years for Crypto Fraud - Partnerships or Integrations: US Federal Regulator says regulated banks can buy, sell and custody cryptocurrency - Major Developments: Coinbase acquired Deribit, the world's leading crypto options exchange, for $2.9 billion
4. Upcoming Events ⏩ - May 13th CPI data - May 15th PPI data - May 27th-29th Bitcoin Conference, Las Vegas
5. Summary ✍️ The market had an incredible run after multiple catalysts emerged surrounding alts + macro interests. The recent FOMC meeting highlighted no changes in interest rates, although the Fed noted rising risks of inflation and unemployment but avoided signaling imminent rate hikes, reducing fear of tightening. The slower balance sheet runoff further supported liquidity which is a natural tailwind for crypto. We also had Trump recently announce a major trade deal with the UK, increasing revenue for the US and lowering tariffs. On top of this, Trump's World LibertyFi organization also purchased $3.5M worth of ETH, leading to a further outperformance in alts. During these times, it's important to still take profits along the way but not forget how far we still have to go. These runs can last for a few days or few weeks. The biggest point is not to FOMO but wait until your strong performers come back to their major support level before bidding again. We're clearly in an uptrend, and dips are for buying.
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