- Crypto stocks continue to recover as Bitcoin holds above $20,000.
- Other cryptocurrencies also stabilize with DOGE and Ethereum possibly bottoming.
- COIN, MARA, MSTR all begin to recover.
Crypto stocks continue on the recovery path as the risk-off sentiment that hammered equity markets begins to ease. In fact, the crypto space held up reasonably well in this equity sell off with Bitcoin never breaking prior lows. This was possibly a decoupling with the Nasdaq and other high-duration equities (a fancy way of saying interest rate sensitive equities!). The Nasdaq and Bitcoin, for example, have been highly correlated this year, but the last equity sell-off was not accompanied by a fall in the Bitcoin price. Evidence of the relationship uncoupling would possibly be good news for the crypto space as valuations look challenging for Nasdaq-listed stocks as a whole.
Below we outline some possible bottom formations in Bitcoin, Ethereum and Dogecoin. Bitcoin is the most interesting with a triangle formation that could see a breakout. Thursday so far has seen Bitcoin rise above the key psychological level of $20,000, which could signal a larger risk-on move. The market's focus recently has improved due to some central banks slowing the pace of interest rate rises and pivoting to bond buying. Expectations for higher rates from the Federal Reserve have retreated lower, all of which is helping risk assets recover.
All this relative positivity has seen crypto stocks stabilize. Coinbase (COIN), Microstrategy (MSTR) and RIOT Blockchain (RIOT) stocks are up 13% in the past month, while Marathon digital (MARA) has advanced 18%. Compare this to the Nasdaq, which is down 4% from a month ago even including the recent sharp two-day rally.
Ethereum daily chart
Dogecoin daily chart
Bitcoin daily chart
Coinbase stock forecast
COIN stock is starting to look interesting with a triangle breakout pattern that could target the last major high at $116.30. As we can clearly see though, the downtrend for the year remains powerful, and it will be a difficult job convincing longer-term players to reenter.
COIN stock, daily
Microstrategy stock forecast
MSTR stock also putting in an attempt at a bottoming formation with key support at $200 and resistance at $267.
MSTR stock daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.