June Foretells Future Crypto Recovery

Jun 30, 2022

The price action for June 2022 was marked by a drop in all Risk Assets (stocks and cryptocurrencies) from the first of the month followed by a recovery mid-June and now finally a retest of the June low by the end of the month.

The relative recovery of the mid-June bullish Retracement indicates the strength of these risk assets and may foretell future recovery and/or potential downside should the June low be broken in the near future.

Bitcoin BTCUSD shown in this post recovered only 30% of the down trend during the pullback.

Ethereum ETHUSD recovered slightly more by 35% of the down trend:


Meanwhile in stock world the S&P 500 represented by futures ES1! recovered with more strength by 54%:


The Nasdaq NQ1! recovered 64%:


What these different relative strength recoveries imply to me is that the stock market is showing more signs of recovery than the cryptocurrency sector in the near term. The implication to this current relativity is that the stock market may recover its losses faster than cryptocurrency. It also implies that cryptocurrency is weaker and breaking the June low in the near future could lead to even greater losses relative to stocks and past price action.