Chart of the Day
Textbook V-bottom. The price of Bitcoin dipped below the $30k support zone for the first time since January after China takes its old “crypto ban” narrative to a whole new level. However, devastating as it was, the dip was only momentary before a major recovery momentum kicked in, forming a text reversal V-bottom pattern.
Currently, the price is settling above $33k. For those wondering if the market has seen its bottom, charts suggest it probably hasn’t. Entity-adjusted dormancy, the metric designed to bottom-catch historical lows, has yet to fall below the 230k threshold into the “buy zone”, where previous lows sit.
Talk of the Town
Second Shot. Digital Currency Group (DCG), the parent company of crypto asset manager Grayscale, plans to buy $50 million in shares of its Ethereum Classic Trust, which has been trading at a discount for more than two months. The move mirrors DCG’s decision to buy $750 million in shares of Grayscale’s Bitcoin Trust (GBTC) in early May. However, the effort has failed to give GBTC a noticeable boost as it continues to trade at a 14% discount.