Crypto Friday: Hell of a Bounce

$BTC $ETH $SOL $BMNR $ADA $IBIT

Hi everyone,

It’s Friday again, and what a market we had this week. The pullback that lasted almost two weeks brought the S&P 500 down slightly more than 4% and the NASDAQ down over 6%. Our level on the SPX at 6,650 broke down for just a moment and immediately bounced (see screenshot below). We will post new levels for you on Sunday evening.

The market at close looks poised for a continuation higher, but the government needs to reopen. It’s essential for data releases and getting people paid. We have airports cancelling flights and chaos all over the place. Data are crucial for the next FOMC meeting and rate decision on December 10th, and so far, there is a 66% chance that the Fed will lower rates by 25 bps. Fingers crossed that we get some positive news this weekend or early next week and the stock market will continue to rally.

We also had an excellent trade on EOSE, and the stock closed 22.5% higher today. We posted this setup in our Sunday prep. (See screenshot below).

From this week’s earnings, HOOD, IONQ, DKNG, DDOG all did really well as expected and posted in our letter. See screenshots below from our pre-earnings reports.

Now let’s continue with our weekly crypto report.

BITCOIN - BTC

BTC tested the 98k -100k support 4 times. There was a strong demand detected around 99k. This level needs to hold. Bitcoin monthly RSI chart, showing a reading of 68. This puts the top cryptocurrency well within uptrend territory, but below the overbought zone (>75) that has historically signaled cycle peaks.