Cryptocurrency Market Outlook
Bitcoin hit a new all-time high of c%64,000 on Wednesday, ahead of the much-anticipated debut to the U.S. stock market from crypto platform giants Coinbase Global Inc. This direct public offering caused a lot of excitement in the crypto markets as it was the first 100% cryptocurrency-focused business publicly listed, adding further confidence into mainstream adoption. Coinbase closed the first day of trading at $328 per share, making it's valuation a colossal $85.8bn, putting it into the list of the 100 highest valued companies in the U.S. In the first quarter of 2021, Coinbase brought in $1.8bn in revenue.
Investor speculation around the positivity of Coinbase's direct listing, the increase in mainstream adoption, the ability for investors to have indirect exposure to the cryptocurrency markets, and other crypto-centric businesses following suit drove the price to all-time highs. This euphoria was short-lived, and we swiftly saw the Bitcoin roller coaster we all know and secretly love step in and dump the price over 18%, falling to a low of c$51,500. There was a lot of speculation over the narrative of what drove this dip, including a 40%+ drop in mining hash rate, overexposure in highly leveraged positions, and an increase in retail entrants to the market. Today Bitcoin appears to be forming a base, holding support of around $55k, 14% down from all-time highs.
If we can continue to hold these levels as support on Bitcoin, many altcoins have pulled back to solid support levels and will give great bullish opportunities. When we dig into the on-chain metrics behind Bitcoin (which the whole market is heavily correlated to), we still have plenty of room before the market shows us strong characteristics of being overheated. We strongly believe the bull cycle is not over at this point, and we will still see explosive bullish moves from these support levels. More development is needed on the intraday charts before we look to execute any longs. By this point, daily support levels will be confirmed. We will share these opportunities in our TMC Club and in this week's live events as they develop.
Opportunity of the week ETH
One crypto we are watching heavily is Ethereum. The technicals of ETH look great. After pushing into a new price discovery phase and punching an all-time high of c$2,550, the price pulled back to retest the previous high and appears to now be holding these levels of $2,100 as support. We await further deceleration and development on the intraday charts before entering any longs, but a position is on our radar. If we get the development we remain patient for, we can expect a move up to the long-awaited $3,000 level with a potential push up into $3,500.
AUDCAD - TA
Last week on April 12th, 2021 Market Update, we entered a long position live in the first 15 minutes of the webinar. This long has been moving strongly in our favour, into profit, currently running at +4.2%. All risk is now removed. We have nearly 2% profit locked in, looking for a move of c12% profit if at our optimal target area. Make sure to watch the recap for a full breakdown and live execution of this position if you missed it. Jonny will be updating his management throughout the week in the club as the position moves deeper into profit.
Currencies: JPY pairs continue to decelerate after a highly bearish 12 month period. We have our eyes on several JPY pairs for further development to play weekly pullbacks.
Commodities: Gold (XAUUSD) had a strong bullish move last week with beautiful price action. We wish to see a quick pullback mid-week before looking to expose ourselves to long positions.
Crypto: We await further development at these levels of support and intraday to have bullish breakouts, and opportunities will be in abundance.
TMC CLUB - Gurneet Singh
Gurneet joined Trading MasterClass in early 2020, and it was apparent (almost immediately) that he was one to watch! With his already impressive background within the financial industry, Gurneet grasped the TMC trading strategies and management techniques quickly and with precision. But Gurneet is not only technically savvy. He also highly values community and has proven himself to be a collaborative team player time and time again. We're super excited to follow Gurneet's trading journey over the next few years and are honored to have him as a valued member of our club. Check out the full interview here.
What's happening this week?
Mon, Apr 19th @ 1pm PDT
Insights with Irek Piekarski
Wed, Apr 21st @ 1pm PDT
Market Update with Irek Piekarski
All the best for the week ahead- see you in the club!
Jonny Godfrey & the TMC Team