Crypto is sharply higher as U.S. yields and the dollar fell after the Treasury announced larger bond buybacks, improving liquidity and risk sentiment. At the same time, Trump met with crypto executives and SEC/CFTC leaders at the White House and pushed for the CLARITY Act, boosting hopes for crypto-friendly regulation. The rally then triggered a massive short squeeze.
More importantly, all coins are also moving quite nicely to the upside, but if you look at the Bitcoin/Gold ratio, you can see that Bitcoin is doing much better. So we think that there is room for more gains in cryptocurrencies, especially now when the dollar is also coming to the downside. In the current cycle, it looks like Bitcoin is the one to watch.
However, we know that nothing moves in a straight line, and there could be some slower price action and pullbacks during the weekend. In fact, if you look at Bitcoin futures, this one has just filled the gap from the middle of May, and usually those gaps are quite important and can represent some resistance. Ideally, this will cause a pullback for wave four, which could later offer some nice opportunities on the long side. If you look at the Fibonacci levels and the upper line of the base channel, some nice support could be around 72,000–74,000 for Bitcoin, from where we could see a push closer to 83k, which was the swing high from the beginning of May.
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