Ivan Brian Ivan Brian

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
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
MSTR stock also putting in an attempt at a bottoming formation with key support at $200 and resistance at $267.

MSTR stock daily chart

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The AUD/USD pair has sensed buying interest from 0.6400 and is marching higher gradually in early Tokyo. The aussie bulls have attempted a rebound despite the stability of the risk-off impulse in the market.
The EUR/USD pair is attempting to defend the extension of weakness below 0.9790 and is sensing buying interest in the early Tokyo session. The asset is displaying sigs of exhaustion in the downside momentum, which could result in a pullback move ahead.
The price of gold is back to flat on the day in what has been a correction of this week's rally into daily resistance near $1,730. The price fell from a high of $1,725.60 to a low of $1,706.95 but held above the prior day's lows despite firmer US yields and a stronger US dollar.
The crypto market displays mixed signals but hints that the bearish trend is not over yet. Adopting a get-in-get-out mentality may be the more favorable approach for investors looking to expose themselves to the market.
Historically, how impactful has the US jobs report been on gold’s valuation? In this article, we present results from a study in which we analyzed the XAUUSD pair's reaction to the previous 26 NFP prints.
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