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Next Crypto ETF: Doomed for Rejection? ☠️
📊 Weekly Crypto Analytics!...Big Month for Ethereum---📚 Lesson on Trading Pattern (Head and Shoulders)
Jonathan Hamblin
May 11, 2024
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Welcome back to Bull Market Bytes, your weekly cryptocurrency insight where we all are waiting in anticipation for Bitcoin to break $100,000! 💰
…and, of course, for Grand Theft Auto 6 to be released. 🤣
Exciting topics for this week!
Statistics as of: 11 May 24 @ 7:14am MST
Fun Fact of the Week 🤓
We know the creator of Bitcoin to be Satoshi Nakamoto…but who exactly is the person or person(s) behind the name? 🤔
Some believe that it may be Hal Finney, who was an early adopter and pioneer for Bitcoin.
Aside from Satoshi, he was one of the first people to run a Bitcoin wallet, mine a block, and receive Bitcoin over the network!
He also mined block 70ish on the Bitcoin blockchain…to put that in perspective we are currently on block 843,013! 🤯
Unfortunately, Mr. Finney passed away in 2014 but left a very heartfelt message to the Bitcoin community before passing. ❤️
Read below and watch his remembrance video.
Ethereum ETF: Fading Hope 📰
Remember when the spot Bitcoin ETF was approved, and we all thought Bitcoin was going to $1 million? 💰
Yeah, that was an awesome feeling! Would love a repeat of that… 😅
WELL…we have all been banking on the spot Ethereum ETFs to be approved this month.
And literally banking on it (Ethereum currently has a 24-hour volume of $11,334,059,197) 😎
But here comes the interesting part…
It seems that people are jumping ship when it comes to the approval of the spot Ethereum ETF…even with questioning if it is a commodity or a security…
We have seen the horrible effect on a cryptocurrency when it is deemed a security. 😳
SEC Chair Gary Gensler's inability to clarify whether #Ethereum is considered a commodity or security has led to investor uncertainty about #ETF approvals, which the @SECGov has delayed.
— Cointelegraph (@Cointelegraph)
9:30 PM • May 8, 2024
The current deadline for the VanEck Ethereum ETF (after being postponed for so long 🤦♂️) is now the 23rd of May.
However, other deadlines have been pushed to the 5th of July.
And on top of that…big names such as Michael Saylor (CEO of Microstrategy which owns about 214,246 Bitcoin valued at $13.02 billion…
Yes, with a b for billion…not million… 😂
Are stating that a spot Ethereum ETF will never happen…
💥NEW: Ethereum, BNB, Solana, Ripple, Cardano will be deemed a securities this summer and will never be accepted by Wall Street- Michael Saylor
— Radar🚨 (@RadarHits)
12:00 PM • May 3, 2024
On top of that…no, the fun does not stop there… 😑
Grayscale has pulled their spot Ethereum futures ETF right before the determination this month by the SEC.
…Now, why does that matter? 🤷♂️
Because it was believed that Grayscale (the world’s largest cryptocurrency asset manager) submitted this request to place pressure on the SEC to approve the spot Ethereum ETF.
Some context behind that…a futures ETF normally follows in approval to the approval of a spot ETF. 😮
AND…senior Bloomberg ETF analyst Eric Balchunas downgraded his odd of the SEC approving the spot Ethereum ETF.
His odds were 50% and now the odds are 35% that the ETF is approved. 👎
So…where we do we go from here?
Great question! We play the waiting game and see the results from the SEC’s determination on the 23rd of May.
If the spot Ethereum ETF is disapproved…there may be potential of a price decrease for Ethereum…
However, an approval may warrant a sharp price increase for Ethereum.
This all ties into our Crypto Analytics for this week! 👍
In the end…only time will tell… ⏰
Weekly Crypto Analytics 📊
With all of the “fun 😅” surrounding Ethereum right now…let’s dive more into the price analytics.
What are we going to gain from this? 🤔
Well…if the spot Ethereum ETF is disapproved, we will be able to see the lines of support that may hold the price up.
And on the other hand… ✋
If it is approved, we will see the lines of resistance that may try to keep the price down when there MAY be a moonshot! 🚀
Let’s take a look below! 👇
With the chart above, we have indicated the level of resistance and support. Each candlestick shows a month of time.
At the furthest candlestick to the right, we are at a crossroad for the month of May…this is a very important time! ⭐
If the candlestick rebounds and goes green, we could continue to follow the support line upwards…
🚨 HOWEVER!…
We apologize to build up the suspense, but…
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Now back to the wonderful and wild world of charting! 📊
If next month’s candlestick breaks the horizonal support line, we have the ability to follow the trend downwards on the sloping support line…
Not an ideal move for Ethereum holders… 😬
ULTIMATELY…below are the paths we have…1, 2, 3, and 4…
The gold circle shows our current point in time…
The various support lines are the options for the next month, and which path it may follow…
Granted, Support 4 is shown because if there is a huge dip down…it would hopefully be supported by that line.
🧠 Remember! May is a HUUUGE month for Ethereum…we have the potential spot Ethereum ETF along with the crossroad in the charting…
Will Ethereum rebound and continue to push higher…or will this month end with doom and gloom? 😩
Only time will tell… 🕒
Bull Market Bulletin 📋
Bitcoin on Track to Surpass $1M by 2030? Jack Dorsey and Cathie Wood both say that Bitcoin is poised to surpass the golden $1M mark…a lot of large names are saying the exact same thing…Can’t wait!
Crypto Trading Volume Declines in April. Overall trading volume on major cryptocurrency exchanges has experienced a significant decline. Is this a volume pullback before a strong push? 🤔
Former President Trump is on the Crypto Train? Donald Trump is poised to be the first major party nominee to court cryptocurrency traders. He warns that his opponent will crackdown on cryptocurrency.
Mark Cuban Advocates for CFTC to Regulate Crypto!? Mr. Cuban wants the Commodities Futures Trading Commision (CFTC) to place regulation before the US election…primarily in hopes to assist Joe Biden…thoughts?
The Number Three Bank Buys $143M in Bitcoin! According to their financial form submitted on Friday, Wells Fargo holds $143 million across three different Bitcoin investments.
Head and Shoulders 📚
Come one, come all! Grab your thinking caps, take a seat, and direct your eyes to the front of the classroom for Head and Shoulders!
No…not the shampoo. 😂
This week’s lesson over the trading formation!
We will be discussing the psychology and variables behind why the movement occurs.
Let’s begin! So, the head and shoulders formation is a fun one because it encompasses both bullish and bearish movement.
Take a look at the image below as we break down each variable that is outlined…starting with the Head.
The Head is the peak that the asset moves as it breaks above the first shoulder, which is the height of bullish movement.
The left Shoulder shows where the asset broke up in price through resistance, also showing a strong bullish movement.
The right Shoulder indicates that the momentum is slowing. The asset could not break above the price where the Head is.
The Breakout shows that we are now returning to the level of where the asset was before the left Shoulder formed.
⭐ The Neckline has the ability to plays as both the support and resistance line.
The short clip below uses candlesticks to form the Head and Shoulders formation. 👇
Now, let’s discuss the psychology behind the movement!
So, what do we mean when we say “psychology”? 🤷♂️
Well, instead of being able to speak with other traders to see why they are buying or selling, the candlesticks give us the answers!
The left Shoulder indicates a very strong bullish movement as it broke through the Neckline, which began as a resistance line.
After it pulled back down to the Neckline, the Head is the last extreme push upwards before coming back down in price.
The right Shoulder is where the momentum was lost and eventually ends with the asset breaking below the Neckline.
🧠 Remember! This formation shows both strong bullish and bearish movement!
Don’t mistake an upwards movement as a continuation because it may just break down lower as shown above!
Ready for your Lesson Review?
📚 Make sure to review the lesson above before answering!
Question: What can the neckline act as in the head and shoulders formation?
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