Crypto Stocks: Coinbase, MicroStrategy pop as Bitcoin, Luna, Dogecoin and Ethereum try to bottom

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.

Ivan Brian FXStreet

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

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 hits nine-week lows below 0.7000 on RBA Bullock's remarks

AUD/USD reverses a brief uptick and turns lower to hit nine-week lows below 0.7000 in the European morning on Tuesday, as traders digest cautious remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock during the press conference. Earlier on, the RBA raised the cash rate to 4.60%, as widely expected, leaving the door open to further rate hikes if needed.

USD/JPY consolidates near 157.50 as a bullish USD counters intervention risks

USD/JPY struggles to capitalize on the overnight bounce from a one-week low, consolidating around 157.50 in the Asian session on Tuesday. Trump's concerns about the Japanese Yen's weakness fueled speculation about another US-Japan joint intervention. This, along with the hawkish BoJ, underpins the JPY and caps the currency pair. Meanwhile, rising Fed rate-hike bets and oil-driven inflation fears continue to push US bond yields to multi-year highs, keeping the US Dollar pinned near a two-month high and supporting the pair.

Gold trims gains; back toward $4,150

Gold now surrenders some of its initial advance and retests the $4,150 zone per troy ounce on Tuesday. Meanwhile, the move higher in the yellow metal comes despite the firmer US Dollar and rising US Treasury yields across the board, while escalating geopolitical tensions appear to limit the downside potential.

Crypto Today: Bitcoin, Ethereum, XRP correct upward amid declining ETF inflows

The cryptocurrency market upholds a neutral-to-bullish bias on Tuesday, with Bitcoin edging closer to a breakout above $84,000. Altcoins mirror BTC’s outlook, with Ethereum holding above $2,700 and Ripple pushing past the reclaimed $1.50 level.

RBA recap: Rate hikes are on the table as demand stays too strong

The Reserve Bank of Australia unanimously tightened monetary policy, warning that inflation remained too high and that several upside risks had begun to materialise. Governor Michele Bullock said the Board would raise rates again if necessary.

Silver is more volatile than Gold ahead of PCE and NFP. This chart shows the positioning gap

The market’s attention is focused on American data this week, but there’s something only those with a trained eye may be looking at: Gold and Silver positioning gap. Financial markets are moving on fears, mostly related to persistently high energy prices driven by the Middle East war. Sure, the US Dollar (USD) is strong, but at what cost?