Daily Pump & Dump | June 2, 2022 Crypto Market Report: BTC, ETH, ICP

The daily pump & dump is a weekday update to the crypto market that gives you an abbreviated breakdown of price action related to Bitcoin, Ethereum and other trending altcoins.

Today’s summary:

Bitcoin retests $30,000 after a rejection. Why is Ethereum lagging behind the rest of crypto? ICP sets insane intraday rally.

Bitcoin Retests $30,000, Can It Hold Key Level?

Bitcoin price was fiercely rejected from resistance at $32,000, pushing the cryptocurrency back to retest support at $30,000.

The decline brought BTCUSD daily to the middle Bollinger Band – which is a simple 20-day moving average. Holding on to the line could lead to further upside potential, while losing it could signal continuation of the downtrend.

Bitcoin Tries Above 20-Day SMA | † to keep Source: BTCUSD on TradingView.com

A close of over $32,000 is now the immediate hurdle for bulls to take, while bears remain a short distance from new lows.

Related literature | Hammer Time: The Bullish Signal That Could Save Bitcoin

Ethereum Loses Its Head (and Shoulders) Against BTC

Compared to Bitcoin, Ethereum is not performing very well. The top altcoin is not representative of the state of alts as a whole, which in some cases have seen a strong recovery today.

Ethereum Could Fall Further Against BTC | Source: ETHUSD on TradingView.com

On closer inspection, ETHUSD is well below the same middle Bollinger Band and 20-day SMA as Bitcoin on daily time frames. The discrepancy is demonstrated in the ETHBTC pair, which is at risk of further disintegration if the horizontal support is broken.

Internet computer starts 20% rally

An outlier in the market today is Internet Computer. The Dfinity Foundation coin posted double digit gains on the day. Just as Bitcoin is visually more bullish than Ethereum given price action and its location within the Bollinger Bands, ICP appears most poised for aggressive expansion.

The Bollinger Bands are a measure of volatility. When the bands tighten, it indicates that volatility is coming soon. Closing outside the upper band is not always a bullish signal and can lead to a reversal. If volume arrives as the price closes outside the upper band, a strong move higher is possible.

ICP requires strong volume to sustain recovery | Source: ICPUSD on TradingView.com

The 20% intraday increase is to be expected given a 98% drop since its debut in the crypto market. At launch, it was bidding at over $500 per ICP, immediately placing the coin in the top ten cryptocurrencies by market cap.

Related literature | LUNA Aftermath: Total Crypto Market More Oversold Than Black Thursday

From a risk vs. reward perspective, a return near debut prices from the current price of $9 per ICP would represent nearly a 5,000% ROI or a 50x on capital. This may be too tempting to pass up.

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education† Please Note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, charts from TradingView.com

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