Hi Everyone,
I want to wish a very happy boat festival to everyone in China, a great Spring Break Day to the UK, and a relaxing labor day in the USA.
The rest of us are gonna be bored out of our skulls.
-Mati Greenspan
eToro, Senior Market Analyst
Today’s Highlights
- Bitcoin on the Edge
- Let US Grow
- UK Final Countdown
Please note: All data, figures & graphs are valid as of May 29th. All trading carries risk. Only risk capital you can afford to lose.
Market Overview
The Trump bashing section of these daily market updates has been canceled. Even President Trump deserves a day off once in a while.
Kidding aside, the GDP numbers published on Friday were incredibly encouraging. During the first quarter of 2017, the period in which Donald Trump was inaugurated, the US economy grew much more than expected.
Analysts were predicting growth of 0.9% but the number came out at 1.2%. This is a positive indication that American businesses are encouraged by their new anti-regulation pro-tax cutting President. Let’s hope this trend continues.
Bitcoin Levels
Many many markets will be closed today due to different holidays across the globe but some are open. Currencies trade 24/5 and cryptos never stop. However, recent price action on Bitcoin and the rest of the gang has some traders on eToro thinking that the party might be over.
Those who are of the mind that this drawback is temporary continue to HODL but that’s getting pretty painful for some.
We’ve had a pretty nice run so far. Here we can see the surge from $250 a coin to a high of $2798 on Thursday.
The pullback was fierce, a total of $920 a coin from peak to trough. The problem when things surge this quickly is that it doesn’t take the time to build up any sort of support.
The support levels we can see in the near term are at $1900, $1300, and the place where the party began at $780. We’ve already bounced off the first level and hope that the price holds here. However, if this market turns bearish we should at least know what to expect.
That said, given the recent updates in Japan there is no shortage of buyers in this market and if we do see the Japanese people switching out Yens for Bitcoin this drawback will simply look like a blip on the chart in a very short time.
If India gives us an indication of adopting digital coins, then surely we’ll need to see the market cap rise very quickly. As it is, even without a green light from the government, some Indian exchange sites are experiencing exponential growth and struggling to keep up with loads of new blockchain users.
No Rest in the UK
Even though it’s a national holiday, politics is very much on the mind and lips of all our British traders. I have very much been enjoying the updates from our popular investor @InvestusMaximus who I am currently copying just to get the mobile notifications when he posts on the network.
At the moment, the situation is not good. The latest polls show Theresa May’s comfortable lead ebbing away since she called the snap elections…
Looking at the chart, we can see the drama having a direct effect on the British Pound…
The blue circle was April 18th, when May announced the elections. The GBPUSD surged as she was seen to be winning with a landslide. Since then the price has flirted heavily with the resistance point of 1.3000 but in the last week or so has been tapering off.
Tonight will be interesting to see the party representatives on the telly trying to persuade the British electorate.
Wishing you a pleasant day ahead.
Best regards,
Mati Greenspan
Senior Market Analyst
