On the Radar – Coins to Watch 23/05

Hands down, one of the most interesting weeks in Crypto for 2024. With the odds of Ethereum ETF approval jumping significantly, it has been an eventful week for the digital asset industry, with the Ethereum Exchange Traded Fund (ETF) final deadline approaching overnight.  

Bloomberg Senior ETF Analyst Eric Balchunas expects that an announcement from the US Securities and Exchange Commission (SEC) for approving or denying a spot Ethereum ETF will land in the afternoon in the US. 

Open interest for Ethereum derivatives has jumped 36% since May 20th, this is the sum of both long and short interest in the asset. Volatility may continue for Ethereum regardless of the outcome of ETF approval or denial.

There are no high-impact economic events on the calendar this week; however, next week, we do have US Gross Domestic Product (GDP), inflation, and unemployment data.

Fear and greed currently reads 76. 

US Legislators support a crypto bill.

The U.S. House of Representatives has passed a bill overnight that moves towards regulating the cryptocurrency industry. The Financial Innovation and Technology for the 21st Century Act (FIT Act) and the Blockchain Regulatory Certainty Act was passed by the House with a 279 to 136 vote in favour of the bill, with the majority of the votes from Republicans.

These bills aim to provide a clearer regulatory framework for digital assets and offer robust consumer protections while fostering innovation within the United States​.

Related: Japanese Firm Metaplanet Emulates MicroStrategy’s BTC Buying Strategy, Sees Share Price Surge 7x

Bitcoin – BTC

Since my last update, Bitcoin has successfully defended the range lows, and importantly reclaimed the mid-range where we currently trade just under $70,000 at the time of writing. From here we would want to see if the bulls are still in control – below is my take on where we could venture next. 

Bullish Scenario

Prices hold and push for the range highs. We could then see new all-time highs. There may also be a further move back to the range midpoint before the market moves higher. 

Bearish Scenario

Failure for bulls to hold prices at these levels, as we are now at levels not seen since mid-April. Price moving below the range midpoint towards $66,000.  

Bonk Inu – BONK

Technically speaking, BONK is one of the most bullish charts I am looking at, again just my perspective. We are close to all time highs, and memecoins continue to be leading the market when Bitcoin recovers. We’ve seen PEPE be a big winner this week as well. 

Below are some thoughts on BONK using Fibonacci analysis. 

Bullish scenario 

BONK needs to get above the 0.618 ‘golden-ratio’ fib for this technical setup to be valid to begin with. From there the next target is the previous high, the 1.212 fib and the 1.618 fib. From current prices, the upper target is a ~100% move. 

Bearish scenario

A breakdown from here and making a new local low would be a bearish move, that could take some time to recover in my opinion. 

Related: SEC Leaning Toward Approving ETFs Amid Ethereum-Based Memecoin Rally

Ondo – ONDO

Sitting in the real-world tokensiations of assets category, ONDO is technically already above this key 0.618 ‘golden-ratio’ area. Below are my bullish and bearish thesis from here. 

Bullish scenario 

Prices continue to consolidate, accumulate, and move higher to the previous high, the 1.272 ratio and 1.618 ratio from here. 

Bearish scenario

Failure to hold above the 0.618 level (green box) would be bearish in my opinion and a failed breakout. 

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See you all again next week.

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