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Liverpool, Tottenham and now Bitcoin?

3 - 0 down, Liverpool scored 4 goals to win there match at home to Barcelona. 3 - 0 down at half-time, Tottenham scored 3 away goals to also win there match in Holland against Ajax, who lost both on and off the field, as there share price dropped almost 20% on the news of the defeat. However In a week of historical comebacks, BTCUSD which was once valued close to $20,000, before falling towards the $3000 region is now trading at $6400. Highest since the fall of 2018. Aside from the mentioned sporting events, could we now be looking atone of the biggest comebacks in financial markets in recent history?

The focus of this week for traders was centrally the US/China trade war, and the barrage of tweets from President Trump which had caught the focus of the news cycle. Yet creeping under the radar was the bull run in BTCUSD which has been a continuous presence throughout the month of May. In the last 10 days this cryptocurrency has risen over $1000 in value leading to technical traders optimistic that history may have a chance of repeating itself, and the rejuvenation of Crypto story. So is there actual substance to this muted optimism? Or are we on the brink of having the basis of a bubble reformed.

With a $6,430 high on Friday Bitcoin seemed to have reached a point of resistance, however looking at a monthly chart, it seems the markets are still oversold, with RSI showing volumes in the high 40s , meaning there could be more buying to come to potentially send this over resistance. If this not only breaks resistance but enters the $7100 mark, many who remember the last time the markets were trading at that level on a incline, may have hopes of history repeating itself, and merely this could be the self fulfilling prophecy which regintes the digital currency debate.

Based on this recent run, the Average True Range of the past 10 days stand at a daily movement of $245.00 in upwards value appreciation. Is this set to increase the deeper we get into May, or will the ceiling stand firm, wiping the optimism from eager investors, reminding them the markets are a place for realists?

Author

Eliman Dambell

With over a decade in financial markets, Eliman brings an experienced and diversified point of view to market analysis. He covers current and historical macro trends to give insights on Metals, FX, Stocks, and Crypto.

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