Mish's Market Minute

Is the Crypto Space Heating Up?

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Tuesday's market action has been sluggish at best. Of the four major indices, the Nasdaq 100 (QQQ) made the largest gain, ending +0.45% on the day. Tuesday's average daily volume in the QQQs also took a hit, with 27,800,000 shares traded compared to the 40,300,000 average.

While the stock market slowed down for the day, the crypto space has been heating up. Since Sunday night, the total crypto market-cap has increased roughly 20%. The money flowing into the space comes after Bitcoin (BTC)'s recent dip under 30k. Currently, BTC is trading around 36k.

Some are saying BTC's recent bottom was the low before a large rally. However, from a technical side, BTC faces a fair amount of resistance coming in at 40-41k. If it can clear and hold this price level, this would confirm a breakout over a key consolidation area.

Recently, we identified the tech sector as the strongest in the stock market from a momentum and price standpoint, compared to many other key sectors that are waning in momentum. With that said, using our proprietary Real Motion indicator on BTC shows that it could be getting ready to break over its 50-period moving average in RM. This means that, if both RM and price can break over their 50-DMA, they will confirm that price and momentum agree.

If momentum can hold and BTC can break over 41k, this could be the next rally crypto investors are looking for.


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ETF Summary

  • S&P 500 (SPY): Consolidation doji day.
  • Russell 2000 (IWM): Struggling with resistance at 234. Held over the 10-DMA at 228.67.
  • Dow (DIA): 341.82 pivotal.
  • Nasdaq (QQQ): New highs.
  • KRE (Regional Banks): 63.63 support. 68 choppy area.
  • SMH (Semiconductors): New highs.
  • IYT (Transportation): 254.65 support.
  • IBB (Biotechnology): 159 support area.
  • XRT (Retail): 97 pivotal area. Like to see this stay over 96.15.


Forrest Crist-Ruiz

MarketGauge.com

Assistant Director of Trading Research and Education

Mish Schneider
About the author: serves as Director of Trading Education at MarketGauge.com. For nearly 20 years, MarketGauge.com has provided financial information and education to thousands of individuals, as well as to large financial institutions and publications such as Barron’s, Fidelity, ILX Systems, Thomson Reuters and Bank of America. In 2017, MarketWatch, owned by Dow Jones, named Mish one of the top 50 financial people to follow on Twitter. In 2018, Mish was the winner of the Top Stock Pick of the year for RealVision. Learn More
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