Traditional markets turned risk on yesterday. Renewed talks on a fiscal stimulus package in the US prompted investors to add to equities, pushing the Nasdaq up 2% and the S&P to new highs, up 1.15% on the session, closing at $3662.
Unsurprisingly, we saw the dollar and treasuries get sold off, pushing the 10-year yield to 0.92%. After a steady downtrend last week, gold made a comeback, rising 2%, now at $1,812.
The crypto space felt slightly incoherent. The bullish sentiment in legacy markets is supportive of a higher price, but, after getting inches away from the 20K mark and retreating, crypto traders were torn between profit-taking and adding to their positions.
BTC made another move up intraday. On Chinese exchanges, the highest level was 19,888 (we’ll recognize the superstitious number), but prices then proceeded to fall all the way down to $18,000 (about 10% differential), only to swing back up, currently at $18,745.
Alts naturally got caught in the storm. For anyone on crypto apps, there were plenty of pop-up notifications of x-coin up x-% and then down x-%. LTC retreated down 3% and ETH and DOT are down about 5% LINK and XTZ fell ~7%, and ADA, BCH, and XLM slumped about 9%.
In previous briefings, I had advocated for cautious trading. The lack of stablecoin supply along with successive whale transfers to exchanges (presumably to sell), the lack of whale withdrawals, and some selling activity from miners has all suggested some difficulty to break through.
For the chartists out there, it’s interesting to see that the RSI doesn’t agree with the new high we made, creating a bearish divergence.
I will say this, though: there’s no real bad news these days when it comes to crypto. That alone could have taken us further and probably contributed to the indecisive session we saw.
Speaking of positive news, did you see that Visa now plans to offer credit card with rewards paid in crypto? Sign me up, please!
It looks like crypto isn’t correlated to traditional markets, at least not during this past session.
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