If you are not ready then get ready, because the bitcoin price is about the blast past the level of $10K, recovering half of its losses from its all time high, a real embarrassing moment for those who said that the currency will never recover from its losses. Well, it is the best performing asset of 2019 and the YTD gains are standing at 140 percent and it has gone up by 70 percent only during the month of May. This is what Bitcoin is all about, never doubt the resilience of the currency and the support it has among the community.
Remember, I have said this before as well, the more it gets beaten down, the stronger the resilience it builds.
Technically speaking, I think Bitcoin price is likely to blast through level of 10K this week or by next week, if the momentum continues at this pace. The price is trading well above the important moving averages, 50, 100 and 200-day simple moving averages and the most important among all of them is the 242-day moving average.
Check the resilience of this moving average on a daily time frame and everything will become crystal clear. I strongly think that as long the price stays above this moving average, this bull run would continue.
The next important price levels are: the resistance of 10K followed by 15K level. It is highly likely that the price may break through the 10K mark and reach $12K or $13K and then start to retrace back to its support of $8K, before the momentum tries again to reach the level of 15K again.
The Fixed income market is also under the spot light today, the Greek government bond prices roared today on the back of the snap election news. Greece, which was once on unstable footing, it has seen its bond yield dropping to a level not seen going back all the way to year 2000. The country benchmark 10-year bond yield plunged by 33 basis point and the stock market is in motion to record some strong gains.
The current government has done a good job (in a relative perspective), the bond yields have dropped substantially from their record high, the country has also experienced growth and it has exited from its bailout programs.
The current drop in the bond yield is because Alexis Tsipras, the country’s prime minister decided to call for a general election because of Syriza party’s weak position in the European elections. The elections are likely to take place next month or the month after and the opinion polls suggest that a business friendly party, New Democracy is likely to gain lead. If this happens, the stock market condition is likely to improve further.
European markets are on the front foot today, they are kick starting the week on a positive note. Investors are feeling comfortable by placing their bets in riskier assets after the results of the European Elections as Pro-EU parties have taken the lead. The European election results did show that nationalism, initially architecture by Trump, is on the rise but it is far less than many have feared and this triggered the feeling of relief.
