Bitcoin Weekly: Stocks Rebound, For Now

The picture for bitcoin remains bleak, as it struggles to break above 72k. Stock markets on the other hand, are proving more resilient. Both the S&P 500 and Nasdaq 100 are now back up in the ranges from which they broke down. This puts the bearish view in question. For now.

Bitcoin closed slightly up on the week, but still below resistance at 72k.

A move higher is still possible, in line with the scenario of a bear market rally from the bottom at 60k. But the trend is still clearly down: bitcoin is still in a bear market, nothing has changed about that. There is no sign yet that a long term bottom is in. It will come at some point, but not this week.

Don’t get sucked into buying the top of a bear market rally.

Turning to the stock market, it has proven stronger than I expected.

Nasdaq 100 is back above the 40 week average, closing in the middle of the range from which it broke down two weeks ago. The same goes for S&P 500. This puts the bearish view in question. That said, the situation is unclear: there is still the very real possibility that this bounce is more a mechanical reaction to the breakdown, and a temporary perception of good news coming from the Middle East, than it is a lasting change.

The next few weeks will tell.