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Cryptocurrency Crash, Tether De-Pegging, S&P 500 Sinks, JPY Outperforms


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BITCOIN, ETHEREUM, S&P 500, JPY PRICE ANALYSIS & NEWS

  • Tether De-Pegging Exacerbates Cryptocurrency Crash
  • Bitcoin Breaks Through Key Levels
  • Equity Sell-Off Prompts Demand For JPY and Bond

Cryptocurrency Crash, Tether De-Pegging, S&P 500 Sinks, JPY ... | MENAFN.COM

TETHER DE-PEGGING EXACERBATES CRYPTOCURRENCY CRASH

Heavy losses once again in the cryptocurrency space with de-pegging fears in stablecoins exacerbating the current rout. Yesterday’s focus had been on the de-pegging in Terra, which saw the likes of Luna fall over 90%. However, concerns are now mounting over Tethers potential de-pegging which would have a far greater consequence for cryptocurrencies. This morning, Tether briefly fell below $0.95 before quickly retracing back to $0.98. Looking ahead, this will be a key sentiment gauge for the Crypto space.

Tether Chart: Daily Time Frame

Cryptocurrency Crash, Tether De-Pegging, S&P 500 Sinks, JPY Outperforms

Source: TradingView

BITCOIN BREAKS THROUGH KEY LEVELS

Bitcoin: Key support levels broken overnight with 30k and the 2021 lows both giving way. However, there would be signs of encouragement IF 30k is reclaimed in quick fashion. That said, below 25k exposes the prior 2017 peak at 19500.

Bitcoin Chart: Daily Time Frame

Cryptocurrency Crash, Tether De-Pegging, S&P 500 Sinks, JPY Outperforms

Source: Refinitiv

Ethereum: Through 2k this morning, although triple bottom support at 1700 has held up for now. While this might offer some comfort, a turnaround in equities will be needed for a more meaningful recovery. Should the triple bottom fail to hold, there is little in the way of support until the March 2021 lows at 1280-1320.

Ethereum Chart: Weekly Time Frame

Cryptocurrency Crash, Tether De-Pegging, S&P 500 Sinks, JPY Outperforms

Source: Refinitiv

Equity Sell-Off Prompts Demand For JPY and Bond

Equities: While the market response to the higher than expected inflation print was a choppy one initially, there was little doubt that overall, it was bad for risk appetite. In turn, S&P 500 futures are now testing 3900 and any bounce backs are likely to be sold into. The bias remains to sell the rip. That being said, some normality has resumed with both the Japanese Yen and Bonds seeing flight to safety flows in amidst the latest market sell-off.

S&P 500, AUD/JPY, US 10Y Yield Chart: Daily Time Frame

Cryptocurrency Crash, Tether De-Pegging, S&P 500 Sinks, JPY Outperforms

Source: Refinitiv

G10 FX 1D Change

Cryptocurrency Crash, Tether De-Pegging, S&P 500 Sinks, JPY Outperforms

Source: Refinitiv, DailyFX

 

May 12, 2022 | DailyFX
Justin McQueen, Strategist

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    • Coffee Elliott Wave Analysis Function - Counter-Trend Mode - Correction Structure - Double Zigzag for blue Y Position - Wave C of (B) Direction - Wave C of (B) is still in progress Details - We recounted Coffee on all time frames. However, we expect the commodity to ascend after completing the zigzag wave (B) around the Fibonacci reversal zone of 212.9-203.9. Invalidation level is at 192.30. Coffee Elliott Wave Analysis Overview: In the long term, Coffee prices have been on a bullish run since October 2023. Despite several pullbacks, each previous top has been consistently breached. The last top was made in April 2024 at 245.5, followed by a decline to 192.3 within three weeks, extending to May 7th. Notable recoveries started from there. However, prices have yet to breach 245.5 to confirm the continuation of the bullish sequence from October 2023.   Daily Chart Analysis: Since January 2023, a double zigzag structure has been unfolding. Wave W (circled) finished on April 18th at 245.5, and the corresponding wave X (circled) was completed at 192.3 on May 7th, where wave Y (circled) began. Wave (A) of Y appears to have concluded with the impulse surge to the current peak in June 2024. Prices are now correcting into wave (B). If wave (B) completes above 192.3, buyers should gain the advantage to push prices higher, especially above the 245.5 top.   H4 Chart Analysis: On the H4 chart, wave (B) is subdividing into a zigzag structure, potentially completing around the 212.9-203.9 Fibonacci zone before turning upside in wave (C) above 245.5. Alternatively, prices might move sideways between the 245.5 and 192.3 extremes, suggesting a triangle structure for wave X (circled).   Summary: In conclusion, Coffee prices remain bullish with potential for further gains, contingent on the completion of the current corrective wave (B). Technical Analyst : Sanmi Adeagbo Source : Tradinglounge.com get trial here!  
    • I have not tried AI for analysis; it is exciting to me, but unclear. It would be interesting to see some kind of training video with an example of use.
    • Thank you for the in-depth and detailed analysis with the graph.
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