🧘‍♂️Our Important Bitcoin Update

Market Meditations | June 3, 2022

Dear Meditators

Tight Bitcoin trading ranges, failed LUNA revival plans, and much more. Let’s take a look at everything you might have missed this weekend.

Today’s Meditations: 

  • Bitcoin Technical Analysis
  • LUNA 2.0 
  • Latest from Senators and Regulators
  • Our Crypto Calendar of the Week

⏰ Top Headlines

? Story of a Crab


Macro Structure: Price is stuck in a really tight range between the $28.6k and $31k levels.

Key Support: $28.6k.

Key Resistance: $31k.

Looking Forward: In tight ranges like this, we look for breakouts. If we break resistance, we can assume continuation to the upside. The first major resistance is $40k. If we break to the downside, the first major support is $24k. Given the macrotrend is downwards, we assume it will continue downwards until proven otherwise.

? Luna 2.0 a Bust? 

After Luna’s price went plummeting to less than pennies, many lost a lot of money. Last week when Terra backers voted to revive Luna, holders were excited about the opportunity to get something back. While holders of Luna weren’t expecting to get all their money back, they were excited to not have their bags go to zero. After launch, Luna 2.0’s price tanked; let’s take a look to see what happened.

  • Luna 2.0 was expected to go live on May 28 at around 06:00 AM UTC. It ended up going live at around 03:00 AM UTC.
  • When Luna 2.0 went live, it nearly hit a high of $20. At the time of writing, it is currently valued at $6.09 – undergoing a near 70% drop.
  • At the time of launch, holders of the crypto on the old blockchain received an airdrop of Luna 2.0 tokens.
  • While holders received an airdrop, many reported only a minuscule amount in comparison to their previous hold.
  • It appears that many immediately sold off their new crypto in order to recover some of the losses from the old coin.

The price tanking has to do with many selling the airdropped coins to recoup some of their lost savings. We must keep a close eye on the crypto to see how it will respond from here on out.

? Bear Market Unlike Bear Stearns Moment

Another weekend, another moon trip canceled. Crypto put in another weekend with sluggish price action, failing to provide a contradiction to bear market mentality. But some regulators and senators remain steadfast in their belief that the industry is here to stay.

  • Investor confidence in crypto has been put to test recently as money has continued flooding out of the market, exacerbated by Terra’s collapse earlier this month. Almost $1 trillion has been erased from the overall market cap since the beginning of April.
  • Some analysts have been comparing crypto’s market behavior to the 2008 financial crisis, calling it a “Bear Stearns” moment for crypto.
  • At the DC Blockchain summit last week, some senators and regulators disagreed, clearly of the mindset that the damage has been contained, and crypto investors should not panic.
  • Sen. Cory Booker, D-NJ told CNBC “There need to be rules to this game that make it more predictable, transparent, where there are the needed consumer protections”, emphasising the need for regulatory clarity on digital assets to make forward progress smoothly.

Brooker went on to highlight the industry’s value of innovation and referenced the cost of missed opportunities moving offshore to avoid unfair treatment from officials. If regulators continue to sit on the sidelines without offering guidance, the United States may miss the boat as projects exit the country in favor of places with clear and fair rules in place.

Monday, 30 May

  • Maple Staking Release

    MPL staking goes live at 12PM EST. The launch is being bootstrapped with 30,000 MPL with emissions being highest the first week and gradually going down over time.

Tuesday, 31 May

  • ‼️ Binance to List Terra 2.0

    Binance will list Terra 2.0 LUNA in the Innovation Zone and will open trading for LUNA/USDT and LUNA/BUSD trading pairs at 2AM EST on May 31.

Wednesday, 1 June

  • Subme June Burn

    Another monthly burn of $SUB will take place in accordance with the program scheduling burning at the beginning of every month this year.

  • Audius AMA

    Join Audius in Discord at 3PM EST for a Q&A with SickickMusic and team.

Thursday, 2 June

  • Factors Affecting Reserve Balances

    The Federal Reserve releases “Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks” at 4:30PM EST. The release discloses balance sheets for each Federal Reserve Bank.

Friday, 3 June

  • Employment Situation

    News release presenting statistics from the household survey and establishment survey, publishing information on employment and earnings.

? Watch

? Read

  • Read the following Technical Analysis guides for more insight:
  1. Moving Averages 
  2. Fibonacci Retracement  
  3. Volume and Open Interest  

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??‍♂️✍️ Stories in this newsletter were written by Kyle F., Misael Calleja, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Ellen B.

Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.

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