Connect with us

Market Overview

Bitcoin’s Path to 250K

Published

on

Hi Everyone,

// -- Discuss and ask questions in our community on Workplace.

The United States, France, and the United Kingdom have carried out a series of airstrikes on the war-torn country of Syria. They have specifically targeted facilities that enable the Asaad Regime to carry out chem-warfare attacks.

In a place where things seemed like they couldn’t get any worse, this latest escalation is rather significant as it brings in new players who were previously on the sidelines.

Some of the more active players like Russia and Iran are not very happy to have the additional company.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

The markets, for their part, seem to be largely unphased by all of this. Stocks have come down slightly but there hasn’t been a massive rush to safe-haven assets as one might expect.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

Earnings Underway

Ruble Divergence

BTC’s Path to 250K

Please note: All data, figures & graphs are valid as of April 16th. All trading carries risk. Only risk capital you’re prepared to lose.

Traditional Markets

Earnings season has kicked off on Wall Street and this should be a great one. Thanks to Donald Trump’s tax cuts and additional stimulus, corporate earnings should be through the roof.

@TheBigBanks who reported on Friday have smashed expectations with JP Morgan’s profits rising 35% in the first quarter, Citi Group raising their earnings per share by 24%, and Wells Fargo seeing profits rise despite a new scandal.

As we can see from the charts above, the great earnings may have propped up the prices a bit but they certainly didn’t send them flying.

It will be interesting to see how the season progresses and to what extent the reports are overshadowed by geopolitics and already high valuations in the market.

Russian Divergence

Traditionally, the Russian Ruble is most correlated with Crude Oil because it is the number one export from the country.

So we’ve seen before how a sharp rise in the price of Crude can affect a similar movement from the Russian Ruble. However, over the last week, we’ve seen them moving in opposite directions as the Ruble is under pressure by international forces and the supply of crude oil is under question.

When trading the USDRUB, remember that you’re trading the strength of the USD. So if the chart is going up it means the Ruble is getting weaker.

Here we can see an overlay of the USDRUB (blue) and crude oil (purple). See how they tend to move in opposite directions but just at the far right of the chart they both spiked up.

Bitcoin’s Graph

Now that we’ve seen a massive spike from the bottom many in the community are thinking that we may have seen the end of the dip.

The bullish price calls are now back in full force with many speculating that we may see another few notable rises in the next few years. The most famous one to come out in the last few days is from Tim Draper, who is calling for $250,000 in the next four years.

It may sound like a rather aggressive call but if you think about it, we’ve already seen this type of percentage growth several times since Bitcoin’s creation.

The move from $3.30 to $126 in a single week in May of 2013 represents a percentage growth of 3,718%. But we don’t have to go back that far. In the last two months of 2017 alone, Bitcoin’s price more than doubled.

We can see these moves better on a logarithmic scale chart, which is becoming a rather popular tool in the crypto community.

The Twitter user @parabolictrav has mapped the path to $250k on a similar logarithmic graph…

Of course, these types of aggressive calls should probably be taken with a pinch of salt. They basically assume that Bitcoin’s adoption rate will continue to accelerate at a similar pace as it has until now and that we see some sort of tipping point, which in my mind is probably a bit less than likely but certainly within the realm of possibility.

Let’s have an amazing day ahead!

This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.

The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.

Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.

Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.

Best regards,
Mati Greenspan
Senior Market Analyst

eToro: @MatiGreenspan | Twitter: @MatiGreenspan | LinkedIn: MatiGreenspan | Facebook:MatiGreenspan

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
2 votes, average: 2.50 out of 52 votes, average: 2.50 out of 52 votes, average: 2.50 out of 52 votes, average: 2.50 out of 52 votes, average: 2.50 out of 5 (2 votes, average: 2.50 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 71 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

Analysis

Euro hits 3-Month Low Despite Hawkish Draghi

Published

on

All eyes were on the European Central Bank and Mario Draghi today, as the recent string of disappointing economic data put pressure on the Euro. Investors started questioning that the ECB will follow through with its monetary tightening plans. As far as the actual momentary policies are concerned, the central bank left everything unchanged today, while the head of the bank signaled that he is confident about growth in the Euro-zone, sparking initial buying in the common currency.

// -- Discuss and ask questions in our community on Workplace.

EUR/USD, 4-Hour Chart Analysis

Despite the hawkish words of “Super Mario” the Euro took a sharp turn lower right at the US open, and the EUR/USD dipped below 1.2150, hitting the lowest level since January. From a technical standpoint, the most traded pair is at a very important juncture, and should the break below support hold, a quick move below $1.20 is likely.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

S&P 500 Futures, 4-Hour Chart Analysis

Stocks are higher for the second day in a row after the strong bearish move in Tuesday, with the NASDAQ leading the way higher, led by Facebook, as the recently troubled social media giant is staging a strong bounce following yesterday’s positive quarterly earnings report. Despite the rally, the charts still suggest that there are more troubles ahead for bulls, with the short-term downtrend clearly being intact in the major indices.

Facebook (FB), 4-Hour Chart Analysis

US Treasury yields which have been in the focus in the last days are slightly lower today, especially regarding the longer end of the curve, as core durable goods orders came in much lower than expected, even as the less reliable headline number beat the consensus estimate. While it’s unlikely that the rising trend in yields will be broken, a correction is in the cards after the strong move higher in rates.

Dollar Rally Dominates Forex Markets

USD/JPY, 4-Hour Chart Analysis

Should Treasury yields pull back substantially from their highs that could mean that a correction the Dollar rally is also ahead, as the Greenback looks stretched from a short-term standpoint too. The Dollar’s strength also weighs on commodities, with gold dropping below $1320 and WTI crude oil falling back below $68 per barrel.

Commodity currencies are still under pressure too, while European and Asian stocks are benefiting from the USD rally, which will remain in the center of attention this week.

Featured image from Shutterstock            

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 234 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




Feedback or Requests?

Continue Reading

Market Overview

Decentralize

Published

on

There’s a fine line between celebrity and politician as we’ve seen clearly with the election of reality TV star Donald Trump.

// -- Discuss and ask questions in our community on Workplace.

Now it seems that famous rapper Kanye West is taking a more proactive stance on politics and has recently had several very public interactions with President Trump on Twitter.

But it’s not just politics. Kanye’s Twitter account has a total of 220 tweets yet it seems that most of them have been posted in the last 48 hours. One of those tweets was a single word. A buzzword in the crypto-community that had a lot of blockchain enthusiasts excited.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Not that Bitcoin needs the Yeezy’s endorsement but I don’t think it hurts.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Draghi Day
  • DB Big Miss
  • Ether Chain Split?

Please note: All data, figures & graphs are valid as of April 26th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

Stock markets are rather quiet today as we await the announcement from Mario Draghi and the European Central Bank (ECB).

The ECB is currently injecting about €30 Billion of stimulus into the economy each month. Though this is far less than they were doing at the peak of global QE a few years ago the feeling is that they’ll need to reduce it further going forward.

The issue is that despite the massive amount of stimulus the Eurozone has been showing signs of weakness.

Of course, it would be very difficult for any central banker to admit that their respective economies are slowing down. So even though nobody expects any concrete changes to the ECB’s monetary policy, investors today will be watching like vultures.

Here we can see that the Euro has been gaining strength against the USD ever since the French elections in April. After running into some resistance at 1.25 it now seems that this strong trend is under question.

Earnings Continue

Yesterday’s announcements on Wall Street weren’t too bad. Facebook managed to defy the calls of #DeleteFacebook and has even managed to gain new users, and even Twitter managed to put up a profitable quarter for the second time in history.

Over to Europe, things are not looking so hot in the financial sector. Barclays faced a quarterly loss of £764 million but the big news rocking the markets today is that Deutsche Bank, which was expected to announce a Q1 profit of €376 Million, disappointed investors with profits of only €120 Million.

Even though this is a massive miss, it might not be as bad as some think. You’ll recall that DB recently switched CEOs right at the beginning of Q2, so there is a clear scapegoat here.

The new CEO Christian Sewing seems to be treating the below-expected earnings as an opportunity rather than a setback and has announced some massive reforms that he feels can improve the bank’s profitability.

At the moment, DB has more than 100,000 employees in 70 countries. From today, many of those outside of Germany will expect to receive notice as DB consolidates its business to try and focus on its core market.

Sewing was brought in to be the gunman when Crayn simply couldn’t pull the trigger. Now it seems that a lot of people are about to get fired.

Will Ethereum Split?

Though the DNS hack yesterday was shocking the damage was rather contained. Ethereum enthusiasts have a much bigger concern on their minds at the moment, the aftermath of the last major Ether hack.

We discussed the Parity hack that froze about 514,000 ETH in a previous market update titled Security & Stability (dated November 8th, 2017). Now the owners of those tokens are doing whatever they can to try and get them back.

Ethereum Improvement Proposal EIP-999 proposes that the upcoming hard fork that is planned to move Ethereum to the Casper protocol will also be used to release the frozen tokens from the Parity hack.

After a week-long vicious vote, the results are in and it seems Parity is out.

In the wake of this narrow yet clear vote not to go ahead with EIP-999 it seems that some of the top developers plan to go forward anyway.

True to character, Vitalik Buterin has been notably silent on this issue. He generally prefers to allow the community to come to some sort of decentralized resolution without the aid of his authority.

Mind you, even if we do see a chain split it might not have a negative effect on the price of Ethereum. There is a distinct possibility that we could see a new coin created that is different from the original like we did with Ethereum Classic and Bitcoin Cash, both of which seem to have generated wealth for token holders.

Let’s have an amazing day ahead!!

This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.

The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.

Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.

Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.

Best regards,

Mati Greenspan
Senior Market Analyst

eToro: @MatiGreenspan | Twitter: @MatiGreenspan | LinkedIn: MatiGreenspan | Facebook:MatiGreenspan

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 71 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

Continue Reading

Market Overview

Market Update: Stocks Recover Slightly on Upbeat Earnings; Cryptocurrencies Give Back $30 Billion in Gains

Published

on

U.S. stocks finished mostly higher on Wednesday, with the Dow snapping a five-day losing after Boeing shattered earnings expectations with its first-quarter report.

// -- Discuss and ask questions in our community on Workplace.

Meanwhile, cryptocurrencies corrected sharply lower as investors took profits following two weeks of steady gains.

Stocks Mostly Higher

Wall Street recovered from a sharp selloff after the open to trade mostly higher on Wednesday. The Dow Jones Industrial Average posted gains of 59.70 points, or 0.3%, to close at 24,083.83. The index was down 200 points earlier in the day.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Shares of Boeing Co (BA) surged 4.2% after the defense contractor posted much stronger than expected corporate earnings. The company delivered per-share earnings of $3.64 on revenue of $23.38 billion. Analysts in a consensus forecast called for EPS of $2.58 on $22.26 billion in revenue.

The broader S&P 500 Index advanced 0.2% to close at 2,639.40, with eight of 11 primary sectors reporting gains. Energy and telecommunication were the biggest gainers, rising 0.8% apiece.

Meanwhile, the technology-heavy Nasdaq Composite Index was back in negative territory by the close, falling 0.1% to 7,003.74.

The CBOE Volatility Index, commonly known as the VIX, edged down a mere 1% to close at 17.84. The so-called “fear index” touched a session high of 19.84 after the open.

Cryptocurrencies Correct Lower

The cryptocurrency market suffered a brisk selloff on Wednesday, as bitcoin and the altcoins shed as much as $50 billion.

Cryptocurrencies as a whole bottomed near $381 billion before recovering at $403 billion, according to CoinMarketCap. Despite the decline, daily trading volumes eclipsed $40 billion, rounding out one of the most active sessions in months.

 

Several major altcoins reported double-digit percentage losses, including Ripple’s XRP, which fell 11.7% to $0.83. Litecoin plunged nearly 10% to $148.25. Bitcoin cash, the market’s top performer over the past week , gave back nearly 9% to settle near $1,336.

Stellar, Cardano and IOTA were all down at least 10% on Wednesday.

Meanwhile, bitcoin hovered near $9,100 by the early evening, where it was down 3.6% from the previous close. However, its share of the total crypto market edged up to 38.3%.

Prior to the selloff, crypto assets had risen by a combined $180 billion in less than three weeks.

Coins failed to rally even after the CEO of Nasdaq said the stock exchange would be open to hosting cryptocurrencies in the future. In an interview with CNBC, CEO Adena Friedman said Nasdaq “would consider becoming a crypto exchange over time,” provided that appropriate regulations were in place to safeguard investors.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 354 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending