Constructive signs as market shows uptick at oversold levels
Hello everyone,
As mentioned in previous few posts, cryptos are my focus because:
They have gone through a relatively significant liquidation event on 12/13 April
They put in strong reversals (along with other risk assets) on Friday. For cryptos, this happens to be near the bottom of their recent ranges
With risk barometers like NVDA dropping -10% on Friday, the market looks near-term oversold, and the probability of a near-term bounce that lasts 1-2 weeks is increased.
It is also notable that despite the headline-grabbing weakness in NVDA and news that Israel attacked Iran, risk assets are holding up decently. Coupled with the strong reversals in indices / cryptos / FX vs USD on Friday, the % of stocks above their 20 day MAs actually closed higher. That is constructive for market breadth.
First, the charts that support higher crypto prices relative to other asset classes:
Bitcoin vs S&P 500 - bounced off bottom of range, and now approaching top-end. Looks likely to test the highs.
Daily Chart: Bitcoin vs S&P 500
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