Crypto markets appear to be stabilizing in the aftermath of the Terra $LUNA crash, with Bitcoin $BTC slowly progressing to the low 30,000s. Many altcoins are pressing down on critical support levels.

As we'll cover in tomorrow's note, many are well-defined for long-taking opportunities if the conditions arise.

But looks can often be deceiving.

We're still placing a high weighting that near-term price action will involve a high concentration of whipsaws. This appears to be a "fade the breakouts" type of environment.

This is all taking place within the context of Bitcoin resting on macro support of around 30,000.

All in all, we have a neutral bias for the weeks ahead. But, zooming out, this would be a logical area to see Bitcoin and the others bounce over longer time frames.

This is the video recording of our June 3, 2022, All Star Charts Crypto Weekly Strategy Session.

This is the video recording of our June 2nd Monthly Charts Live Strategy Session

From the desk of Louis Sykes @haumicharts

The beauty of trading and analyzing crypto is the level of transparency of the data.

This is put on full display when it comes to the sprouting industry of on-chain analytics, but the same principles apply when evaluating money flow as a collective.

Not only does crypto host its own exclusive metrics that aren't available in traditional markets, but traditional indicators like the topic of today's post often have additional nuances involved.

This enables us to gain even more insight than what is possible in other asset classes.

Today, we wanted to explore how we use open interest in our crypto process to supplement our traditional technical analysis research.

It's that time again -- monthly candlesticks!

Longtime readers know how much we love new monthly candlesticks. They force us to zoom out from the day-to-day noise and focus on what's really taking place.

In the case of Bitcoin $BTC, it can't get any more defined than 30,000.

Remember this time last summer when we were obnoxious about this level every week?

The magazine cover on the left, describing how Bitcoin was "Storming Wall Street" came just a few weeks before Bitcoin put in a historic top in late 2017. Immediately after this cover story, Bitcoin went on to have one of the most epic crashes of all time.

Investors got wiped out right after the one on the left.

And now here we are after Bitcoin got cut in half, and many of the altcoins are down 70-80% if not more.

There's no denying that the market action over the last month has been hectic.

From the collapse of Terra $LUNA to the crash in governance tokens, not to mention the macro headwinds that have played their role in crypto markets.

With all this noise, let's zoom out and focus on how we're viewing the current situation.

This is the video recording of our May 27, 2022, All Star Charts Crypto Weekly Strategy Session.

From the desk of Louis Sykes @haumicharts

"WAGMI," we've all heard it.

Short for "we're all going to make it," it's the mantra of crypto natives that paints an image of a better future.

As positive as this group expression may seem, it can also be viewed from the lens of a profound juxtaposition.

At its roots, WAGMI represents a deep contrast between the message of hope and the tragic reality of the lives of crypto natives.

From the desk of Louis Sykes @haumicharts

In yesterday's note, we made a brief argument for caution.

Today, I want to add some further context and discuss one of the difficulties involved with trading in a tape as messy as this.

Some tools and some strategies work great in certain market environments but terribly in others.

The range can include the following: looking for bearish breadth divergences at the start of bull markets; using a long-term moving average as an entry in a sideways market environment; or even something as fundamental as deciding how to approach tactical trading opportunities.

In the case of today's crypto market, a big mistake would be to directionally trade Bitcoin when no real direction has been ascertained.

Last week, we posed the question, "Was That It?"

As it stands, Bitcoin $BTC continues to hold above 30,000 following its brief false move. There are a number of levels we're monitoring over short time frames.

Correlations with legacy markets remain intact. But we're likely at an inflection point with respect to the co-movement between crypto and legacy.

This will be the emphasis of today's note.