To The Moon

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For the past 4 trading days in Week 18, we have seen the 3 indexes close in the RED. We do understand that there is an issue with regional banks, where First Republic Bank was bought out by JPMorgan.

But is this the only issue which cause the indexes to be in the RED? We have the Fed announcement on 03 May 23 that a further increase of 25 basis point is coming and a pause might be ‘coming’.

If we look closely at how things unfold, investors would have suffered on 01 May 2023, but there are something we may want to notice.

Let me share with you on how the Bitcoin volume was traded after the regional bank issue by First Republic Bank happen.

Here is how the 3 indexes have closed over the last 4 trading days.

How Bitcoin Trading Volume Move from 02 May till Date

As you can notice, there is a very high volume of trading volume recording on 02 May 23, this is when the U.S. indexes for 02 May 23 close lower by more than 1%.

Are investors going to park their money in a different asset class? Last time, Bitcoin used to move in tandem with the stock market.

This might have changed? Let me look at more data to see if this is true.

Similarly, we can observed a large trading volume on 04 May 2023, this could indicated that investors are moving into other asset class to avoid the issue caused by U.S. regional banks.

Bitcoin Price and Volume - 02 May 23 to Date

As mentioned above, we can noticed that the volume on 02 May and 04 May was high when the price is low, meaning there is a lot of buying.

This could mean that investors are looking at crypto related asset class or stocks.

We shall look at MARA whose performance is pretty closely related to Bitcoin movement.

But before that, let us look at the Bitcoin Price Volatility.

Bitcoin Price Volatility

If you look at the price volatility, it was pretty high on 02 May 2023 and 04 May 2023, which explain the falling of the price and this presented a good opportunity to enter.

But what we need to look at is as of now (05 May 2023), volatility is low and prices now could be at its high, we might want to wait for the next downturn before we enter, but we could look at Crypto stock (like $Marathon Digital Holdings Inc(MARA)$ )

How MARA stock price move with Bitcoin

Similarly to 02 May 2023, there are a lot of BUY volume when MARA is trading below $9.00, this is inline with what is happening to the trading volume for Bitcoin.

Investors are going into crypto stocks when Bitcoin is adjusting its price, they no longer wait for Bitcoin to fall below a certain level.

This prove to be a right entry price as MARA stock prices have been trending upwards.

Looking at how the Bitcoin prices will move, it seem to be forming an upward trend.

This would pose a good opportunity to look at loading Bitcoin or MARA.

I would think MARA would have some adjustment to around $9.20, this would present a good entry price.

Summary

From how things have unfolded, I would think that Bitcoin would gain ground, and this could help to boost the share prices of crypto stocks.

They are not limited to only MARA, you can look at other crypto stocks and do your own trend analysis.

I would monitor and wait for a good entry price for MARA.

This is my previous trade of MARA.

Appreciate if you could share your thoughts in the comment section on what do you think of going into crypto stocks now or when the price adjust a bit downwards?

Do like, share and comment on this article if you find this trading thought useful.

@TigerStars  appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.