Bitcoin and Crypto Market Updates (June 26th)

So here’s something exciting from the stock market last week that I want you guys to see.

So it's no secret that the rally in stocks this year has been concentrated in a handful of names like Apple, Nvidia and Microsoft.

And these names are incredibly overbought…

What's concerning here is two things.

These names are hitting overbought levels while we have retail sentiment at extreme optimism and institutions at extreme pessimism. What's scary here is how accurate this chart is at predicting pullbacks.

The other thing I'm seeing here is while these names consolidate and pull back from overbought levels… where is that money going?

The healthy thing you want to see is this money flowing into small caps, stuff like IWM. When you see this healthy rotation that shows an underlying confidence in the market and last week we just didn’t get that.

Where did that money flow?

Mostly into cash…

So this tells me big investors are choosing to take profits on the AI hype and the run in large caps and rather sit on the sidelines than allocate to the wider market

And this is while retail start piling into the hype.

Now there’s still a chance we see a wider market rally and a continuation in the large caps but for that to happen we need to see evidence of that money flowing into other areas of the market.

If we don't see that this week then I think we’re going to see a pretty nasty selloff in the tech sector very soon.

Powell Calls for Stablecoin Regulation, Crypto Market Reacts

Federal Reserve Chair Jerome Powell testified before the House Financial Services Committee, addressing questions on digital assets and stablecoins. Powell emphasized that stablecoins are a form of money and expressed the need for robust federal regulation. Concerns were raised about user privacy protection if the US were to introduce a central bank digital currency (CBDC), to which Powell stated that individual accounts at the Federal Reserve would not be supported. Investors reacted negatively to Powell's remarks, resulting in a decline in stock market indexes. However, cryptocurrencies experienced gains, with Bitcoin and Ether both seeing increases. Analysts attributed the rally to signs of growing institutional interest and anticipated regulatory clarity in the crypto ecosystem.

Binance.US ‘flash pump’ to $138K

Deutsche Bank Seeks Crypto Custody License in Germany

Deutsche Bank is making moves to expand its digital assets and custody business by applying for a cryptocurrency custody license from Germany's financial regulator, BaFin. The bank's application aligns with its efforts to boost fee revenue for its corporate bank unit and follows its asset management subsidiary DWS's exploration of investments in German crypto companies. BaFin has been actively monitoring companies providing crypto-related services in Germany and has already granted custody licenses to several firms. Deutsche Bank's move reflects the growing interest in cryptocurrencies within traditional financial institutions.

Fortune 500 Companies Bullish on Crypto

Over 80% of Fortune 500 companies are actively exploring or implementing Web3 initiatives, despite US regulatory pressure, according to a Coinbase report. Key sectors like finance, technology, and retail are leading the adoption of blockchain technology. Infrastructure development, supply chain management, and data collection are among the areas of interest. Executives express optimism for crypto investments and believe blockchain will shape the future of business. However, the lack of clear regulations hinders further adoption. Coinbase aims to educate policymakers on crypto's purpose through an integrated campaign.

Staked ETH hits 20M Milestone, worth $38 Billion

Ethereum has achieved a significant milestone as the amount of staked ETH reaches over 23.5 million, nearly doubling in just one year. Staking involves locking up cryptocurrency to enhance network security and earn rewards. This process allows token holders to generate passive income without selling or trading their assets. With over $38 billion currently dedicated to securing the network, staked ETH is becoming increasingly popular. The recent Shapella upgrade, which enabled withdrawals, saw a significant influx of 3.6 million staked ETH ($6.9 billion). This growing interest in Ethereum staking demonstrates a shift towards decentralized spaces and signifies a positive development for the network's future.

What is Range Trading?

As a trader, you're always on the lookout for effective strategies to maximize your profits. Range trading is a popular technique that allows you to capitalize on price fluctuations within specific ranges on a chart. In this comprehensive guide, we will explore the concept of range trading, providing practical tips on how to identify ranges in the chart using Fibonacci levels, Monday range, weekly range, and kill zones. By mastering these techniques, you can enhance your trading performance and unlock greater profit potential.

Understanding Range Trading:

Range trading is a strategy that takes advantage of predictable price behaviour within defined ranges. Instead of predicting market direction, range traders aim to profit from price oscillations within established levels of support and resistance. This approach is particularly effective during sideways or consolidating market conditions, where the price exhibits repetitive patterns. By mastering range trading, you can make informed trading decisions and capitalize on price movements within established ranges.

Identifying Ranges in the Chart:

To successfully apply range trading, it's crucial to identify ranges on the chart using various techniques. Here are key methods to consider:

Fibonacci Levels:

Incorporate Fibonacci retracement levels into your analysis to identify potential support and resistance areas within the chart. By applying these levels, which have proven mathematical relationships in financial markets, you can pinpoint potential ranges and key reversal levels.

Monday Range and Weekly Range:

Pay attention to the price range established on the first trading day of the week (Monday range) and the broader range that spans the entire week (weekly range). These ranges serve as important reference points for identifying support and resistance levels within the overall market structure.

Kill Zones:

Take advantage of specific time periods during the trading day known as "kill zones." These periods experience increased price volatility, often aligning with market openings, major economic announcements, or trading session overlaps. By focusing on these kill zones, you can harness heightened price movement and potential range expansion.

Analyze Price Behavior:

Observe how the price behaves within the identified range. Look for repeated tests of support and resistance levels, indicating a range-bound market. Such behaviour presents trading opportunities within the established range.

Utilize Technical Indicators:

Enhance your range trading strategy by utilizing technical indicators. Oscillators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) offer insights into overbought and oversold conditions within the range, strengthening your trading decisions.

Set Clear Entry and Exit Points:

Once you've identified the range, establish clear entry and exit points. Consider placing buy orders near support levels and sell orders near resistance levels. Implementing risk management strategies, such as stop-loss and take-profit levels, is vital to safeguarding your capital and optimizing potential profits.

Conclusion:

Range trading provides traders with a valuable strategy to capitalize on predictable price oscillations within defined ranges. By incorporating techniques such as Fibonacci levels, Monday range, weekly range, and kill zones into your analysis, you can enhance your ability to identify and profit from range-bound market conditions. Remember to prioritize proper risk management and continually refine your skills through observation and experience. With a well-executed range trading strategy, you can unlock significant profit potential and achieve consistent trading success.