Daily Analysis: Theresa May Under Pressure as Bitcoin Goes Wild and Altcoins Rally
Wednesday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||56.84||-0.22%|
While Bitcoin’s new record high and its following slump took center stage, global equities stabilized after yesterday’s mixed performance, even as further doubts emerged regarding the GOP’s tax plan. As Donald Trump is visiting Asia, his party is still on the edge regarding the controversial proposal, and Treasury Secretary Mnuchin said that he is not ruling out the delay of the corporate tax cut. Stocks rebounded from their early lows, as the NASDAQ 100 led the way yet again, and although small caps remained under selling pressure, all of the major indices got back to green int eh second half of the session.
Asian stocks continued higher while their European peers bounced back together with US equities, while currencies had another relatively calm session. The Great British Pound lost significant ground again, as Theresa May’s government seems to be weakening further, and the forced resignation of Priti Patel is another serious issue for the Prime Minister who is already on the defense thanks to the grueling Brexit process.
EUR/GBP, 4-Hour Chart Analysis
The Pound fell sharply against both the Euro and the Dollar, while the rest of the majors were little changed, with the Yen experiencing some intraday volatility thanks to the rebound in risk assets. Gold, the other main safe-haven asset performed better than the Yen, finishing slightly higher, while oil had a volatile session, as another bearish US inventory release and the ongoing Middle East turmoil pushed the commodity in opposite directions.
Gold, 4-Hour Analysis
Bitcoin got back in the spotlight today, as the most valuable coin first rallied back to its all-time high near $7500, then surged to $7900 for a new record high on the cancellation of the Segwit2x fork. If that wasn’t enough, the coin crashed to $7000 after the spike, just to finish the US session back near $7500. While the long-term setup remained unchanged and dangerously overbought, the strong short-term uptrend is still unchanged, despite the crazy day.
BTC/USD, 4-Hour Chart Analysis
Altcoins shined bright amid Bitcoin’s frenzy, with several majors breaking out, or continuing their recent bullish moves. Dash finally moved above the $300 level with a more than 5% day, Monero got clear of the $100 resistance with a 10% jump, but NEO and IOTA were the stars of the session with gains of 18% and 23% respectively. Overall, the segment climbed to record highs as the total market cap of the coins briefly reached $210 billion.
IOTA/USD, 4-Hour Chart Analysis
Key Economic Releases on Wednesday
|Tent.||CHINA||Trade Balance||254 bill||275 bill||193 bill|
|10:30||US||Crude Oil Inventories||2.2 mill||-2.5 mill||-2.4 mill|
Key Economic Releases on Thursday
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