Bitcoin’s Make-or-Break Moment? | Bankless

Decision Time? Crypto assets steadily gained overnight after a stagnant weekend as market players around the globe returned to their desks. But shortly after the opening of U.S. markets, the move stalled out! Why has price run into resistance?

Confirmation last month that pending spot Ethereum ETF applications would receive approval from the Securities and Exchange Commission (SEC) turbocharged crypto prices, fueling a leg up that placed many tokens within striking range of achieving new cycle highs.

The unexpected shift in approval odds caused underexposed traders to feverishly ape ETH, pushing the token just shy of new cycle highs above $4k; BTC was propelled within 2% of new all-time highs, briefly touching $72k.

Although ETH achieved a higher local high last Monday, BTC was hammered lower prior to achieving one last week, a potentially worrisome sign for bulls that indicates sellers retain some amount of control. With BTC setting up to reject for the third time from range highs off a lower local high after an attempted breakout, crypto markets appear to be at a pivotal make-or-break moment…

Continuation of the rally would swiftly send BTC to new all-time highs, undoubtedly yielding major tailwinds for the valuations of broader crypto assets, however, a breakdown from here would send the token tumbling back down towards the $60k range lows that have supported price throughout the last three months, subsequently putting further downside into play.

Tangentially, spot volumes on BTC and ETH sharply fell last week, demonstrating a lack of interest at current prices that suggests a reversal in trend could be coming in the near future.

While crypto markets have been relatively devoid of significant volatility post spot ETH ETF approval confirmation, certain TradFi assets lit up their tapes with erratic swings in price this morning.

• Pseudonymous GameStock bull Roaring Kitty (aka Keith Gill) returned to the spotlight this weekend after a two week hiatus from social media, disclosing his ownership of 5M GME shares, unmasking himself as the whale that had accumulated a monster call position on the stock last week, and tweeting a green uno reverse card.

  GME more than doubled amid renewed memestock excitement, rallying as high as $45 during pre-market trading this morning, but has since given back much of the move, plunging to lows of $28 in cash trading.

• The New York Stock Exchange also experienced a major glitch this morning and was forced to halt trading on 50 listed assets, seemingly due to a software update which impacted price band guardrails designed to limit volatility.

  Most notable of the assets impacted were Class A shares of Warren Buffet’s Berkshire Hathaway, which tanked 99% on the open this morning prior to the trading halt.