Two of the major cryptocurrencies, including Ethereum ($ETH) and Bitcoin ($BTC), are looking to clear and hold over resistance; Bitcoin at $40–42k and Ethereum at $2900. Their next test is to hold at or over these price levels through the weekend. If they do, we could see not only continued price runs in many altcoins, but traded companies that closely follow the space could also be poised to run higher.
Let's start with two crypto mining companies. Both Canaan (CAN) and Hut 8 Mining (HUT) have recently cleared over resistance levels. CAN is now over its 50-day moving average at $7.96 and barely over resistance from June 29th at $8.94. Additionally, the next level it needs to climb over is the 200-DMA at $9.88. On the other hand, HUT is over both its major moving averages and now needs to hold over its July 7th high at $5.59.
The increase in prices across the board has made crypto-mining companies more profitable and has also opened the doors to the crypto banking trend. One company we have been following is Silvergate Capital (SI).
On Friday, SI cleared resistance at $114. However, it still has remaining resistance at $118 it needs to clear. If it does, SI has the potential to run into the $140 price range.
With that said, the main caveat is if prices in the major currencies can hold over the weekend. If so, we should have a keen eye on these companies, since they can be very quick to move.
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ETF Summary
- S&P 500 (SPY): New highs with small range day.
- Russell 2000 (IWM): Still needs to clear 225 resistance.
- Dow (DIA): Needs to hold 351 as new support.
- Nasdaq (QQQ): Held its 10-DMA at 366.63.
- KRE (Regional Banks): Watching for a bullish phase change over the 50-DMA at 65.71.
- SMH (Semiconductors): 263.86 support area.
- IYT (Transportation): Cleared the 10-DMA at 251.51.
- IBB (Biotechnology): Closest support the 10-DMA at 167.86.
- XRT (Retail): Very choppy.
Forrest Crist-Ruiz
MarketGauge.com
Assistant Director of Trading Research and Education
