Stock and bond prices took off immediately following the ISM report that has plummeted drastically to 49.6 from 56.5. The Nasdaq is up nearly 3% just before the close, while the 10-year bond yield has dropped 16 basis points to 3.56%.
In the cryptocurrency market, Bitcoin (BTC), Ethereum (ETH), and other large-cap coins have been starting to gain their value. Even though currently the crypto market sentiment still tends to be low, the release of The Fed's minutes for the December 2022 meeting regarding plans to increase their key interest has triggered a significant price increase.
According to CoinMarketCap, Bitcoin (BTC) and Ethereum (ETH) both went up for 3.61% and 9.13% in the last seven days, with the current price at $17,205 for BTC and $1,307 for ETH, at the time of writing.
Bitcoin breaks above $17,000, with its strong momentum, we can anticipate prices to continue upwards for the near-term.
Despite macros suggesting a bearish outlook until Q2 or Q3, BTC pushes past one of the most well-respected resistance levels.
On-chain analysis sees short liquidations of over $10 million USD of short positions in the large upswing this morning.
Long/short ratios have also seen a large shift of interest to longing in the market. The heightened volatility coupled with strong upwards momentum lets us sell puts closer to the money with confidence of not getting converted.
Ethereum comes close to the highest price it has last reached in the last month ($1,340). Strong market movement this Monday morning breaks the sleeping momentum that was witnessed in the past couple weeks.
Technicals swing to the upside with confidence, as ETH bounces off the 20-MA for the third time on the 4H candles.
ETH continues to show more strength to the upside compared to BTC, suggesting a stronger recovery for ETH in the upcoming bull market. Recommending DCA more into ETH as opposed to BTC.
Expect higher volatility leading into the end of the week, generally bullish for the rest of this week. Will wait for price retracement before looking to enter a long position in the short-term.
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