Bitcoin, Ethereum, Dogecoin Move Higher: Why This Analyst Thinks Cryptos Could 'Rally Hard' In Week Ahead

Zinger Key Points
  • Cryptocurrencies rally as stocks pick up steam ahead of fresh trading week
  • People trying to short cryptos could get a "hard lesson" if they don't pay attention to stocks - Cryptocurrency analyst Justin Bennett
  • Glassnode co-founders point to co-relation between bond selloff and risk-on assets

Bitcoin and Ethereum traded above key psychological levels on Sunday evening as the global cryptocurrency market cap rose 3.8% to $1.3 trillion at press time.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD 3.1% -8.9% $31,062.01
Ethereum ETH/USD 3.1% -15.6% $1,969.01
Dogecoin DOGE/USD 3.2% -25.4% $0.09
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
Arweave (AR) +23.7% $19.07
NEM (XEM) +19% $0.068
Decred (DCR) +17.6% ​​$39.64

See Also: Best USDC Interest Rates

Why It Matters: Risk assets were seen trading in positive territory at press time as both U.S. stock futures and cryptocurrencies saw gains. S&P 500 and Nasdaq futures rose 0.2% and 0.5%, respectively. 

The uptrend in stocks could be supported this week by several retail names, which are set to report earnings. 

Investor sentiment remained a bit down, as Alternative.me’s “Fear & Greed Index” flashed “Extreme Fear” at press time. The market mood remains unchanged from last week.

Justin Bennett, a cryptocurrency analyst, said that people trying to short cryptocurrencies are about to get a “hard lesson” on why they have to pay attention to stocks. “It’s no longer optional."

Bennett also said the S&P500 and the Invesco QQQ Trust Series 1 QQQ, an exchange-traded fund that tracks the Nasdaq 100 index, have reclaimed key levels on a weekly time frame, the “most telling sign” yet that cryptocurrency is about to “rally hard’ in the coming week. 

Cryptocurrency trader Michaël van de Poppe expects Bitcoin to test $32,800 levels in the coming week. He tweeted a “higher low” has been created on the chart of the apex coin.

Chartist Ali Martinez pointed out on Twitter that there are 84,500 BTC long positions on the Bitfinex exchange. 

 

“Either everyone is a genius, or a lot of people are going to get #rekt,” said Martinez.

Glassnode co-founders Yann & Jan touched on the correlation between the ongoing selloff in bonds to risk-on assets as the U.S. Federal Reserve turned hawkish. 

Figure Ilustrating Correlation Between Bond Sell-Off And Risk-On Assets — Courtesy Glassnode Uncharted

The analysts said we are entering a regime similar to 1968-1975 when an increasing U.S. 10-year maturity, buoyed by high inflation, exerted downward pressure on the S&P 500.

“We believe that the Fed will continue adding pressure to the U.S .10-year maturity yield and the S&P 500, despite the fact that the prices of durable goods and used cars gradually decreased,” said Yann & Jann, in a blog post seen by Benzinga.

The yield on the 10-year Treasury notes rose 11.8 basis poing to 2.935% on Friday, according to a report from Reuters.

Read Next: Warren Buffett Now Owns Bitcoin: Here's How The Oracle Of Omaha Got Exposure

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