According to his analysis, the massive selling of MicroStrategy (MSTR) and Coinbase (COIN) stocks earlier this month demonstrates that boomers dumped their bags around the time Bitcoin hit a local low of $26,700.
Further evidence of American boomer capitulation on crypto mid-May
MSTR and COIN nearly doubling off the lows already, with colossal volumes at the lows pic.twitter.com/KiYyhSJyOG
— Zhu Su 🔺 (@zhusu) May 30, 2022
MicroStrategy’s (MSTR) and Coinbase’s (COIN) Daily Chart Errily Resemble That of Bitcoin
MicroStrategy is trading below the 50-day (white), 100-day (yellow), and 200-day (green) moving averages on the daily chart, indicating a clear downtrend. Furthermore, the MSTR chart shows that trade volume has been significantly higher in the current month of May, supporting Mr. Zhu’s capitulation theory.
1-day MSTR chart
Similarly, the one-day Coinbase chart below indicates that COIN will suffer a similar fate. The stock has maintained its downtrend that began since early November last year.
1-day COIN chart
The ongoing pullbacks in MicroStrategy and Coinbase stocks, as seen in the 1-day BTC/USDT chart below, eerily mirror Bitcoin’s price action. Hence, it is reasonable to conclude that the fates of COIN and MSTR in traditional markets are linked to the price action of Bitcoin and the crypto markets.
1-day Bitcoin chart
Bitcoin Could Attempt a Retest of $32k
It is worth noting that the US Federal Reserve will begin tightening monetary policy on Wednesday, June 1st. Most people view the event as bearish because it confirms inflation and the possibility of a US recession. As a result, both traditional and crypto markets may face additional selling pressure this week.
However, the above Bitcoin chart shows that there is increased buying of BTC, which could result in the digital asset gaining enough momentum to retest the $32k resistance level. However, since Bitcoin is in an accumulation range that may not yield much in terms of upward volatility, traders should be extra cautious when trading BTC this week.
