Skip to main content

Analysis 10.10.2017 : Pound Rises as Bitcoin Hits $4800

Monday Market Recap

AssetCurrent ValueDaily Change
S&P 5002540-0.16%
DAX129760.15%
WTI Crude Oil49.520.47%
GOLD1287.000.97%
Bitcoin48786.59%
EUR/USD1.17520.17%
Financial markets are very quiet today, with only a few assets showing increased activity. The Catalonian crisis is in the center of attention, but there is no decisive change in the situation of the region, as it still looks likely that tomorrow the local government will announce independence. From there, there are several scenarios, and some of them are in the hard negative category for the markets. That said, equities are generally unchanged, with only the recently surging small caps drifting meaningfully lower on very low volume.
Russell 2000, 4-Hour Chart Analysis
The Great British Pound regained some of its recent losses, as we speculated, with the currency advancing against all of its major peers. Turkey got in the spotlight as well, thanks to the diplomatic standoff with the US, and the Turkish Lira got smacked lower after a long period of stable prices. Gold is the other major mover, as the precious metal finally found some footing after dipping below the key $1275 level, with the rally in it being somewhat overdue. As equity markets are still in a deeply overbought state, we wouldn’t be surprised on more upside in safe-haven assets in the coming weeks, and that trend could carry the Yen higher too.
USD/Turkish Lira, Daily Chart Analysis

Cryptocurrencies

The crypto segment is two-faced today, with Bitcoin shining bright, but altcoins getting a beating, especially towards the end of the session. The major story behind the restructuring of the market is the exponential nature of the SegWit adoption that made the most valuable coin more attractive relative to the other major coins. That coupled with the size and adoption advantage of the BTC network is driving the price of the coin.
The rapid fall of Bitcoin Cash is a clear sign of the trend, but we expect the other majors to recover from the current sell-off, as the boom in the segment continues. Ripple has been rallying together with BTC, but it entered overbought territory and started a short-term correction after touching $0.28. NEO and IOTA remain the most volatile coins, while the previous leaders of the market, Dash, Monero, and Litecoin continue to lag the other majors.
BTC/USD, 4-Hour Chart Analysis

Technical Picture

The NASDAQ followed the broader market higher, although slightly lagging the other major indices, and it also got overbought in the process before the end of last week. The benchmark is now showing signs of rolling over, as the MACD indicator is showing a bearish cross in the overbought zone. The tech segment might be ready to test the rising trendline, and a deeper correction could also be in the cards, especially given the overvaluation in US equities. Primary support is found just above 6000, with further levels at 5900, 5800, and 5725
NASDAQ, 4-Hour Chart Analysis

Key Economic Releases on Tuesday

Time, CETCountryReleaseExpectedPrevious
2:30AUSTRALIANAB Business Confidence–5
10:30UKManufacturing Production0.3%0.5%
10:30UKGoods Trade Balance-11.2 bill-11.6 bill
14:30CANADABuilding Permits-0.9%-3.5%

Comments

Popular posts from this blog

Analysis 23.10.2017 : Notable Bitcoin Price Growth Events in October

  October has been an interesting month for Bitcoin, with growth of about 40% so far, breaking a market cap of over $101,881,681,652. But if you are looking at Bitcoin long-term, this is more than just numbers now. Yes, Bitcoin did experience some explosive growth this month (and has been this entire year), but we shouldn’t let that distract us from some of the main components that will fuel Bitcoin’s growth in the long-term. Not only did the price break $6,000 per Bitcoin for the first time ever, we started to see Bitcoin’s market cap rate  surpass that of big banks such as Goldman Sachs ($93 billion) and Morgan Stanley ($89 billion) . While comparing the market capitalization of a cryptocurrency with that of publicly traded companies doesn’t make much financial sense, it’s entertaining to watch financial institutions stress out about Bitcoin. For example, the CEO of JPMorgan Chase Jamie Dimon  can’t stop talking  about Bitcoin and venting h...

Bitcoin 21.10.2017: Bitcoin Hits $100 Billion as Record Rally Continues

Bitcoin’s epic rally intensified Friday, as the token reached $6,000 for the first time in its history, bringing the total market value above $100 billion. Bitcoin’s Fresh Intraday High BTC/USD touched an intraday high of $6,064.14, bringing its total market cap to $100.8 billion. That’s roughly $85 billion higher than where the market started in January. At press time, bitcoin was trading around $5,993, up more than 5% on the day. From a technical perspective, the digital currency is considered overbought. However, the technicals are typically less reliable during extreme price movements like we’ve seen in recent weeks. The world’s leading cryptocurrency has added a staggering 520% this year. Bitcoin’s rally didn’t really extend to other cryptocurrencies Friday. Ethereum continued to trade just north of $300, while Ripple (XRP) consolidated a hair below 21 U.S. cents. The cryptocurrency market’s combined market cap is roughly $173.4 billion, which is roug...

history grow of money and bitcoin

https://www.youtube.com/watch?v=FKXLaui-KuQ