Shares rise, altcoins give back their profits and the strength of the dollar could push Bitcoin lower

Shares rise, altcoins give back their profits and the strength of the dollar could push Bitcoin lower – Mail Bonus

Between May 23 and 27, stock markets were booming, with the NASDAQ (NASDAQ: QQQ) ETF rising just over 7% and the S&P 500 (NYSE: SPY) rising by over 6.50%. However, prices hit this week all week and while the J trading session is not over yet, the weekly candlesticks point to a close near last week’s opening.

QQQ Weekly (NYSE). Source: TradingView

At present, all major indices face significant technical resistance levels above the current level of trading. Throw in growing economic uncertainty and fears of recession; the jump may be limited.

Cryptocurrencies fall again

The cryptocurrency market could close relatively flat but fall this week, extending its loss cycle to an all-time high, nine weekly losses in a row. Some of the altcoins this week were in the green, Cardano (ADA) and Stellar (XLM), for example, but both saw 50% to 70% of that profit wiped out.

Weekly cryptographic chart of total market value. Source: TradingView

The total market value of the cryptocurrency market is just above the $ 1.20 trillion level, which is approaching awkwardly close to a critical $ 1 trillion range.

Oil continues to rise

Future light crude oil futures (NYMEX: CL) continue to rise and could close to an estimated close to a 14-year high, values ​​not seen since the end of July 2008. From 11 April to 3 June, oil prices have already risen by more than 20% and rests just below the $ 120 level.

Weekly Forward Oil Chart (NYMEX). Source: TradingView

Weekly data on crude oil inventories on June 1 showed a huge decrease of -5 million barrels compared to the estimated -1.35 million. Even a recent agreement from OPEC + on almost double production has failed to prevent oil prices from rising.

Food tank

Future wheat (CBOT: ZW) and grain futures (CBOT: ZC) futures are down this week, -10% and -6%, respectively. However, the decline in these markets is most likely due to severe longer overbought conditions, which will lead to a technical downturn. Fears and uncertainties about food security and global scarcity continue to plague this market.

Wheat futures weekly chart (CBOT). Source: TradingView

A dollar recovery could be underway

Like wheat and corn, the greenback comes from a technical setback from long-term over-buying. As a result, within the Ichimoku Kinko Hyo system, the US dollar index (TVC: DXY) has an indirect close for the week, which is higher with a marginal gain of 0.3%.

Tenkan-Sen’s strong technical jump saw DXY bounce more than + 1%, but most of these gains have been lost. The DXY may fall below the critical 100 level near the weekly Kijun-Sen, but the hidden bullish difference between the graph and the composite index may prevent further depression.

For traders and investors in cryptocurrencies, DXY is sometimes seen as an unrelated market. In other words, when DXY moves up, Bitcoin (BTC) and altcoins move down.

That is not always the case, but DXY should be considered as a safety flight. When money is transferred to the dollar, market participants are expected to be scared and uncertain.

Along with continued economic uncertainty and some tremors in the labor market, DXY could continue to rise steadily higher.

Next week’s key economic data to keep track of

  • June 7: Canadian current account balance and Ivey PMI data. US API change in crude oil inventory.
  • June 9: EU Central Bank interest rate decision. Initial claims for unemployment in the United States.
  • June 10: Unemployment in Canada. US Core Inflation (MoM), Real Inflation, Core Inflation (YoY) and Consumer Attitudes in Michigan.

The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Every investment and trading business involves risk, you should conduct your own research when making a decision.