Bitcoin on the way to $ 10,000 – and the situation in Europe

Bitcoin continues to rise

If you’re not ready yet you’d better get ready: the Bitcoin price is starting to recover to $10,000 – half of its losses from its all-time high – uncomfortable for those who said the crypto currency would never recover from its losses. Well it’s the most powerful asset of 2019 and has grown 140 percent since the beginning of the year. In May alone Bitcoin rose 70 percent.

But Remember we’ve said this before. The more you push it down the stronger the resistance Bitcoin builds.

Technically we think the Bitcoin price will probably explode from the 10,000 level this week or next week if the momentum continues at this pace. The price is traded far above the important moving averages. The simple moving averages of 50, 100 and 200 days and the most important of them is the moving average of 242 days. We firmly believe that as long as the price remains above the central moving averages this bull run will continue!

The next important price levels are: the resistance of 10,000 and then the 15,000 mark. It is very likely that the price will break through the 10,000 level and then rise up to 12,000 or 13,000 before there will be a reset to a support level at 8,000 dollars – before the next momentum again tries to reach the 15,000 level.

The bond market – Greece with bullish stock markets

The bond market is also in the spotlight today. The prices of Greek government bonds rose (i.e. yields fell) due to the upcoming elections. Greece which was once on an unstable footing is now seeing its bond yields fall to levels not seen since 2000. The yield on 10-year bonds fell by 33 basis points and the Greek stock market saw strong gains.

The current government has done a good job (in a relative perspective). Bond yields have fallen sharply from their record high. The country has also experienced growth and has resigned from the bailout programme.

The current decline in bond yields is due to the decision of Alexis Tsipras, the country’s prime minister, to run for re-election because of the Syriza party’s weak performance in the European elections. The elections are likely to take place next month or the month after. Opinion polls suggest that a business-friendly party, the New Democracy, is likely to take the lead. In this case the stock markets situation should continue to improve.

The European markets started the week on a positive note. Investors seem willing to invest in riskier assets as pro-EU parties remained in the lead in the European elections. The results of the European elections have shown that nationalism (in the style of Trump) is on the rise. But it is far lower than many had feared – and that has triggered a sense of relief.

Naeem Aslam
chief market strategist bei ThinkMarkets
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