Bitcoin, Ethereum, Dogecoin Move Higher: Why This Analyst Thinks Cryptos Could 'Rally Hard' In Week Ahead
Benzinga
Published May 16, 2022 02:24
Updated May 16, 2022 03:10
Bitcoin, Ethereum, Dogecoin Move Higher: Why This Analyst Thinks Cryptos Could 'Rally Hard' In Week Ahead
Bitcoin and Ethereum traded above key psychological levels on Sunday evening as the global cryptocurrency market cap rose 3.8% to $1.3 trillion at press time.
| Bitcoin (CRYPTO: BTC) | 3.1% | -8.9% | $31,062.01 |
| Ethereum (CRYPTO: ETH) | 3.1% | -15.6% | $1,969.01 |
| Dogecoin (CRYPTO: DOGE) | 3.2% | -25.4% | $0.09 |
| Arweave (AR) | +23.7% | $19.07 |
| NEM (XEM) | +19% | $0.068 |
| Decred (DCR) | +17.6% | $39.64 |
Why It Matters: Risk assets were seen trading in positive territory at press time as both U.S. stock futures and cryptocurrencies saw gains. S&P 500 and Nasdaq futures rose 0.2% and 0.5%, respectively.
The uptrend in stocks could be supported this week by several retail names, which are set to report earnings.
Investor sentiment remained a bit down, as Alternative.me’s “Fear & Greed Index” flashed “Extreme Fear” at press time. The market mood remains unchanged from last week.
Justin Bennett, a cryptocurrency analyst, said that people trying to short cryptocurrencies are about to get a “hard lesson” on why they have to pay attention to stocks. “It’s no longer optional."
Did a little shopping this morning.Bennett also said the S&P500 and the Invesco QQQ Trust Series 1 (NASDAQ: QQQ), an exchange-traded fund that tracks the Nasdaq 100 index, have reclaimed key levels on a weekly time frame, the “most telling sign” yet that cryptocurrency is about to “rally hard’ in the coming week.Pretty sure those trying to short crypto here are about to get a hard lesson in why you have to pay attention to stocks. It's no longer optional.
And also why you don't short into macro support.
— Justin Bennett @JustinBennettFX) May 14, 2022
The S&P 500 and $QQQ reclaimed these levels on the weekly time frame.Cryptocurrency trader Michaël van de Poppe expects Bitcoin to test $32,800 levels in the coming week. He tweeted a “higher low” has been created on the chart of the apex coin.That's the most telling sign yet that #crypto is about to rally hard next week. $SPY $SPX https://t.co/SCG5U3RSqv pic.twitter.com/f3zScr6D79
— Justin Bennett (@JustinBennettFX) May 14, 2022
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Good part, higher low has been created on #Bitcoin.Chartist Ali Martinez pointed out on Twitter (NYSE:TWTR) that there are 84,500 BTC long positions on the Bitfinex exchange.Choppy movements around CME during the weekend, but think we'll see a test at $32.8K in the coming week. pic.twitter.com/FPhlfuVrnL
— Michaël van de Poppe (@CryptoMichNL) May 15, 2022
“Either everyone is a genius, or a lot of people are going to get #rekt,” said Martinez.
There are nearly 84,500 $BTC in long positions at @Bitfinex.Glassnode co-founders Yann & Jan touched on the correlation between the ongoing selloff in bonds to risk-on assets as the U.S. Federal Reserve turned hawkish.Either everyone is a genius, or a lot of people are going to get #rekt.
What do you think? pic.twitter.com/vwoZ9RST5j
— Ali Martinez (@ali_charts) May 15, 2022
Figure Ilustrating Correlation Between Bond Sell-Off And Risk-On Assets — Courtesy Glassnode Uncharted
The analysts said we are entering a regime similar to 1968-1975 when an increasing U.S. 10-year maturity, buoyed by high inflation, exerted downward pressure on the S&P 500.
“We believe that the Fed will continue adding pressure to the U.S .10-year maturity yield and the S&P 500, despite the fact that the prices of durable goods and used cars gradually decreased,” said Yann & Jann, in a blog post seen by Benzinga.
The yield on the 10-year Treasury notes rose 11.8 basis poing to 2.935% on Friday, according to a report from Reuters.
Read Next: Warren Buffett Now Owns Bitcoin: Here's How The Oracle (NYSE:ORCL) Of Omaha Got Exposure
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