Three Arrows Capital’s Su Zhu Believes American Boomers Capitulated on Crypto in Mid-May

Summary:

• Three Arrows Capital co-founder Su Zhu believes that American boomers capitulated connected crypto mid this month.
• He cites the declining prices of MicroStrategy’s and Coinbase’s banal successful the accepted markets.
• Both assets stay successful a confirmed downtrend that eerily resembles that of Bitcoin, frankincense indicating a beardown correlation.

The Co-founder of Three Arrows Capital, Su Zhu, believes that American boomers capitulated connected crypto mid this month.

According to his analysis, the monolithic selling of MicroStrategy (MSTR) and Coinbase (COIN) stocks earlier this period proves that boomers offloaded their bags astir the aforesaid clip Bitcoin deed a section debased of $26,700. Mr. Zhu’s investigation of the imaginable crypto capitulation by American boomers tin beryllium recovered successful the pursuing tweet.

Further grounds of American boomer capitulation connected crypto mid-May

MSTR and COIN astir doubling disconnected the lows already, with colossal volumes astatine 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

With respect to MicroStrategy, the regular illustration beneath confirms a wide downtrend arsenic MSTR is trading beneath the 50-day (white), 100-day (yellow), and 200-day (green) moving averages. Also, from the MSTR chart, it tin beryllium observed that commercialized measurement has been importantly higher successful the existent period of May, further confirming Mr. Zhu’s capitulation theory.

1-day MSTR chart.

Similarly, the one-day Coinbase illustration beneath indicates a akin destiny for COIN. The banal has continued connected its downtrend that has its genesis successful aboriginal November past year.

1-day COIN chart.

The ongoing pullbacks witnessed by some MicroStrategy and Coinbase stocks amazingly mimic Bitcoin’s terms action, arsenic seen successful the 1-day BTC/USDT illustration below. Consequently, a escaped decision tin beryllium made that the fates of some COIN and MSTR successful the accepted markets are tied to the terms action of Bitcoin and the crypto markets.

1-day Bitcoin chart.

Bitcoin Could Attempt a Retest of $32k

To enactment is that the US Federal Reserve is acceptable to commencement its tightening monetary argumentation connected Wednesday, June 1st. The lawsuit is regarded by astir arsenic a bearish 1 arsenic it confirms ostentation and the anticipation of a recession successful the United States. As a result, determination mightiness beryllium further selling unit successful some accepted and crypto markets this week.

However, from the supra Bitcoin chart, it tin beryllium observed that determination is accrued buying of BTC that could pb to the integer plus managing capable momentum to astatine slightest retest the $32k absorption level. But caution is advised erstwhile trading BTC this week owed to the lawsuit mentioned supra and Bitcoin being successful an accumulation range that mightiness not output overmuch successful presumption of upward volatility.