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Daily Analysis: Bitcoin Explodes Above $2700 as US Stocks Hit New Highs

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Daily Analysis: Bitcoin Explodes Above $2700 as US Stocks Hit New Highs

Introduction

This article was posted on Thursday, 17:15, UTC.

Thursday Market Recap

Asset Current Value Daily Change
S&P 500 2411 0.38%
DAX 12643 0.03%
WTI Crude Oil 51.07 -0.10%
GOLD 1257.00 -0.18%
Bitcoin 2710 11.61%
EUR/USD 1.1218 -0.17%

The S&P 500 and the NASDAQ both reached new marginal all-time highs amid the Bitcoin surge, as the Fed’s minutes boosted the market yesterday in late trading. The central bank announcement delivered another blow to the Dollar, despite pointing to the stability of the rate hike schedule, with a likely tightening move in June. European equities are still lagging their US peers, with the Euro’s rally weighing on equities. The Japanese market is also up slightly, while Chinese stocks continued to soar, as the surprise rally since the Moody’s downgrade carried the Shanghai Composite near its bounce-highs from last week.

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Shanghai Composite, 4-Hour Chart Analysis

The US Dollar recovered once again off its overnight lows, as it seems to have found some sort of support for the first time since Trump’s Russian scandal started to really hurt the currency. Oil turned volatile following the OPEC’s 9-month production cut extension that caused a disappointment among traders, as some analysts were expecting a 12-month agreement. The recent strong rally also contributed to today’s decline, leaving less upside for the crucial commodity, and setting up a sell-the-news event. Currency markets are relatively calm with some selling in commodity-related currencies, but a generally risk-on sentiment.

Cryptocurrencies

Bitcoin stole the headlines once again, as the mainstream media’s attention is starting to focus on the main cryptocurrency amid the surging Asian demand, the accelerating adoption, and the string of all-time highs. The total value of Bitcoins hit $44 billion today, getting close to the 50% of the coin market yet again, as several majors dipped lower after the recent leg of the broad rally. XRP fell below its recent support near 0.30, losing almost 20% today, while ETH is down by 5%, still trading near $200. Dash, Monero, NEM, Bytecoin, and Stellar are deeply in the red, with double digit losses, while ETC is just shy of yesterday’s highs, getting close in market value to NEM.

Bitcoin, 4-Hour Chart Analysis

Technical Picture

The S&P 500 is trading just above the crucial 2400 level again following last week’s brief dip, with the main US benchmark fighting that for several weeks now. The NASDAQ regained its relative strength in recent days, and it also hit a new high, despite the lack of momentum and the internal weakness of the market. Only 61% of US stocks are currently trading above the 200-day moving average, while a few big names continue to lift the indices. Should the S&P 500 hold above the 2400 level sustainably, another leg higher is likely, especially if volatility remains as low as currently, with the short- and long-term trends still being bullish.

S&P 500, 4-Hour Chart Analysis

Key Economic Releases on Thursday

Time, CET Country Release Actual Expected Previous
10:30 UK Revised GDP 0.20% 0.30% 0.30%
14:30 US Initial Jobless Claims 234,000 236,000 236,000

 

Key Economic Releases on Friday

Time, CET Country Release Expected Previous
01:30 JAPAN National Core CPI 0.40% 0.20%
14:30 US Core Durable Orders 0.40% 0.00%
14:30 US Prelim GDP 0.90% 0.70%
16:00 US UOM Consumer Sentiment 97.6 97.7

 

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Mate Cser

Mate Cser

Trader 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.

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