Crypto Comeback: Bitcoin bounce sees COIN have a RIOT as MSTR plots its next strategy

Bitcoin refused to fall as the risk meltdown took hold last week.
Bitcoin now starts Turnaround Tuesday and rallies sharply.
COIN, MSTR, RIOT and others all rally on Monday.

Ivan Brian FXStreet

Crypto stocks look set for more gains on Tuesday as Bitcoin remains in stubbornly bullish mode. The cryptocurrency was steadfast in its refusal to break lower last week despite a risk-off debacle across most other assets. The divergence in assets may be at play as in previous risk-off meltdowns Bitcoin has been dragged lower. Not this time though. Tuesday had a bullish move from Bitcoin, which is up 5% and above $20,000 this morning. That should add to the bullish sentiment for crypto stocks.

COIN, RIOT, MSTR stock news

Monday saw the beginning of the crypto recovery with COIN stock up. MSTR stock closed at $200.18 for a gain of over 4%, while RIOT and MARA were also higher. Let's not forget others in the space such as BBIG, which also closed higher. There is little to report on an individual level for any of the above stocks. Tuesday could and should see more gains based on the move in Bitcoin. The failure to break below $18,600 meant a test of ultimate lows at $17,590 was unlikely. The next test is the trendline at $21,400 and then $22,800, which is the high from September 13.

Bitcoin chart, daily

MSTR, COIN, RIOT, MARA stock forecast

The outlook is intricately linked to the performance of Bitcoin and risk assets. Currently, on Tuesday we may have dual tailwinds from an equity rally and a Bitcoin rally.

Coinbase stock is attempting a short-term bottoming formation but is failing to put in place any fresh significant highs. This is a sign of a weak rally, and a break of the last high at $84.58 is needed.

COIN stock daily

A similar picture in MSTR: a weak rally so far until $362 is broken.

MSTR chart, daily

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.