Crypto Update: Coins Still Stable as Ripple Breaks Trendline

Thursday Market Recap

Asset	Current Value	Daily Change
S&P 500	2600	-2.43%
DAX	12,132	-3.58%
WTI Crude Oil	60.54	-1.85%
GOLD	1326.00	0.53%
Bitcoin	8150	2.31%
EUR/USD	1.2256	-0.01%

Volatility is still the name of the game in global stock markets with equities being in the center of attention since the Monday crash. The major indices finished around 3% lower on the day, with the second half of the session turning out to be very ugly. Stocks plunged right into the finish, as the Volatility Index (VIX) surpassed 30 again, this time not being driven by technical “forced” selling like on Monday.

S&P 500 Futures, 4-Hour Chart Analysis

Global stocks are following their US peers closely, as correlations skyrocketed as usual in high-volatility situations. The German DAX index, for example, is trading at levels last seen in September, as the recent strength in the Euro weighed heavily on European equities and the recent turmoil delivered a huge blow to the already weak markets.

DAX, 4-Hour Chart Analysis

Forex markets were less active today; at least as far the daily changes are concerned, even as the major pairs experienced heavy trading. The Great British Pound was in focus following the hawkish words from the Bank of England, as the possibility of a quicker rate hike schedule pushed the currency higher in European trading, although it gave back almost all of its gains in late trading, as US markets took a nosedive.

GBP/USD, 4-Hour Chart Analysis

All risk-on currencies were under pressure, even as the Dollar rise paused against the Euro, with the Japanese Yen turning out to be the winner of the day. Gold also rebounded strongly after heading lower in early trading, but it remains well below the $1350 level, still grinding through its overbought correction amid the global turmoil. From a long-term perspective, the precious metal is still an attractive target, even in the face of the rising global yields.

Gold, 4-Hour Chart Analysis

Cryptocurrencies

The crypto segment was remarkably stable amid the equity storm, even as the previous after-hours session saw a concerted sell-off in stocks and crypto-coins. The majors all bounced back heavily after the overnight weakness, and although most of the coins remained below last week’s bounce-highs, the previous lows are safe, and a final cycle low is likely behind us.

BTC/USD, 4-Hour Chart Analysis

Not forgetting the positive signs that we noted today, namely the ongoing bullish rotation between the coins, the decline in volatility, volume patterns, and relative strength to stocks, the charts still show a declining trend, and investors shouldn’t expect a rally straight to the prior all-time highs. A long and grueling consolidation phase could be ahead of us, as the market “digests” the recent boom-bust cycle.

Featured image from Shutterstock

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