The Dow Jones Industrial Average enters Tuesday seeking to snap a streak of two consecutive losing sessions, but the specters of the Brexit vote and earnings season threaten to derail the index’s mid-week recovery. The cryptocurrency market, meanwhile, continues to flash green, as bitcoin and other large-cap assets cling to Monday’s recovery while bracing for Constantinople, Ethereum’s upcoming hard fork.
Dow Trades Sideways in Advance of Opening Bell
Traditional markets remain shaky ahead of Tuesday’s opening bell, and futures contracts tracking the Dow and its peers spent much of the day bouncing around their levels at Monday’s close.
As of the time of writing at 8:32 am ET, Dow futures were down just 2 points to 23,865, while S&P 500 and Nasdaq futures both traded slightly in the green with gains of 0.11 percent and 0.42 percent, respectively.
Yesterday, the Dow, S&P 500, and Nasdaq all closed in the red for the second consecutive day after posting a five-day winning streak. The Dow dropped 86.11 points or 0.36 percent, once again failing to break through and hold above the elusive 24,000 mark. The S&P 500 shed 13.65 points or 0.53 percent, and the Nasdaq endured a 65.56 or 0.94 percent drop-off.
Nevertheless, all three indices remain firmly in positive territory for 2019 and have mostly erased the mid-December losses that contributed to the stock market’s dismal end to last year.
Concern as JP Morgan Misses Profit for First Time in 15 Quarters
Wall Street continues to closely monitor corporate earnings as analysts weigh the risk of the US economy slipping into a recession.
Sentiment turned sour on Tuesday morning after JP Morgan missed profit expectations for the first time in 15 quarters. According to CNBC, the Jamie Dimon-led banking giant accrued $1.98 per share in profit during the fourth quarter of 2018, well below the $2.20 per share that analysts had expected.
Like Citigroup, which missed revenue targets but nevertheless rallied on stronger-than-expected profit figures, JP Morgan blamed a decline in bond trading revenue for weighing on its fourth-quarter performance.
“Despite a challenging quarter, we grew markets revenue in the investment bank for the year with record performance in equities and solid performance in fixed income,” CEO Jamie Dimon said in the earnings release.
Dimon, who has said that he does not believe the US is heading into the outer rings of a recession, nevertheless admonished the country’s leaders to “strike a collaborative, constructive tone, which would reinforce already-strong consumer and business sentiment. Businesses, government and communities need to work together to solve problems and help strengthen the economy for the benefit of everyone.”
Brexit Hangs in the Balance
But while corporate earnings promise to remain a lingering concern for the stock market’s recent recovery, today’s Brexit vote could be a far more pressing threat.
British Prime Minister Theresa May’s Brexit plan is expected to fail in parliament today — perhaps spectacularly — but analysts predict that the vote will inject significant volatility into the markets, so much so that many brokers have limited leverage for UK stocks and currency futures.
As Marc Chandler, Bannockburn Global Forex chief market strategist, told CNBC:
We could see knee-jerk volatility. She could lose by a historic margin. This could be a historic loss by the government.
In preparation for this seeming eventuality, May told senior ministers that she would continue to work to facilitate Britain’s orderly exit from the European Union and “respond quickly” to the outcome of the vote, which is expected to take place between 7 pm and 9 pm GMT.
“The prime minister said the government is the servant of the people and she believes passionately that we must deliver on the result of the 2016 referendum,” a spokesman for the prime minister said in remarks quoted by Reuters. “She added that after the vote has taken place, she would respond quickly to the result.”
Bitcoin Clings to Gains as Ethereum Braces for Constantinople
Neither Brexit nor corporate earnings season is expected to have much direct impact on the cryptocurrency markets, though some analysts including eToro’s Mati Greenspan maintain that bitcoin and its peers are more connected to other asset classes than many investors realize.
In any case, the crypto market saw a moderate recovery on Monday. The bitcoin price, which had on Sunday slipped below the so-called “GTFO” level of $3,500, popped above the $3,700 mark on Bitstamp and other cryptocurrency exchanges, though it has since ebbed to $3,647 as of the time of writing.
The ethereum price, meanwhile, is up 8 percent on the day, owing to optimism over the Jan. 16 Constantinople hard fork. The fork, which will activate at block 7080000, will introduce a number of upgrades into the Ethereum protocol, which developers say will better prepare it to scale to the requirements of future mainstream adoption.
Equally as important is that Constantinople will reduce the ethereum inflation rate by 33 percent, as the cryptocurrency’s block reward will decline to 2 ETH per block from 3 ETH. This should reduce selling pressure from miners.
Importantly, this hard fork, unlike the recent one which roiled Bitcoin Cash, is not expected to splinter the Ethereum network into multiple competing versions — and cryptocurrencies. While a group of disgruntled users could always refuse to migrate to the new protocol version, miners, exchanges, and other infrastructure providers have committed to supporting the network upgrade.
Nevertheless, traders will be closely watching the hard fork’s activation, as unforeseen bugs and other disruptions could lead to significant price volatility in the short-term.
Bitcoin [BTC] and other cryptocurrencies can be exchanged for ETFs and stocks, says Abra CEO
Bill Barhydt, CEO and Founder of Abra – a leading fintech firm in the cryptocurrency space, spoke about a range of services offered by the platform, in an interview with Nugget’s News.
The discussion started with Barhydt talking about why he started Abra. He stated that it was because he wanted to “build an effectively new type of banking system,” adding that it was to replace traditional banking services with cryptocurrency-based services. The CEO stated that this could include investing, transferring money, and accessing credit. He also added that he wanted to create a “Whatsapp” for money.
This was followed by Barhydt stating that every country across the globe had its own dedicated mobile money system, such as Paytm in India, Venmo in the U.S, and WePay in China. However, there was no app that enabled its users to make cross-border money transfers. He went on to state,“[…] because they only work in one country by definition […] so one app that could work in every country could start to solve things like cross-border money transfer, cross-border payments, investing in Western assets in the east, and eastern assets in the West. so this is basically what we’ve built with the Abra service […]”
During the interview, the CEO was asked whether Abra’s focus was more on STOs, equities, and ETFs. To this, he stated that the platform was not providing any services related to STOs yet, adding that the market for those types of tokens wasn’t established as of now. He said that Abra currently supports 50 different fiat currencies and 30 cryptocurrencies that include Bitcoin [BTC], Litecoin [LTC], Ether [ETH], and Bitcoin Cash [BCH]. He added,
The CEO further added,“[…] and any of the stocks any of the fiat currencies and any of the ETFs so for example you can hold Australian dollars and buy Microsoft you can sell your Microsoft and exchange it for Litecoin and any combination of those across the entire portfolio […] our mission is to democratize access to financial services globally and this is a big step towards making that that vision a reality […]”
Bitcoin [BTC] and Litecoin [LTC] Price Analysis: Bulls drag BTC from bear’s trap; fail to save LTC
The cryptocurrency market was painted red on April 25 as most major coins fell. Bitcoin, the world’s largest cryptocurrency, also fell by 2.83% over the day, along with Litecoin [LTC], which reported a fall of 1.25% over the day.
At press time, BTC noted a fall of 0.39% over the hour and was valued at $5,433.19 with a market cap of $95.97 billion. The coin fell by 2.82% over the past day and noted a minimal growth of 2.90% over the past seven days. The 24-hour trading volume for BTC was observed to be $16.11 billion.
Support 2- $3,851.02
Bollinger Bands noted a bullish trend as the moving average line was under the candlesticks. The bands appeared to be converging, indicating reduced market volatility.
Awesome Oscillator indicated strong bearish momentum.
Chaikin Money Flow pointed towards a bullish market as the marker was above zero. However, it appeared to be approaching the mark, with a change in trend imminent.
Litecoin [LTC] one day chart
At press time, LTC fell by 1.25% over the past day and was valued at $72.54 with a market cap of $4.46 billion. The coin fell by 0.77% over the past hour and by 10.20% over the past seven days. The 24-hour trading volume was observed to be $3.13 billion.
Parabolic SAR indicated a bearish market as the dotted markers aligned above the candlesticks.
MACD line was under the signal line, pointing towards a bearish market.
Relative Strength Index indicated that the buying and selling pressure evened each other out.
According to BTC’s long-term chart, a bullish market was predicted. However, the CMF suggested that a trend reversal may be underway. LTC pointed towards a bearish market.
Bitcoin Price Analysis April 25: Critical Decision Point For BTC – a Double Top or Hold Support?
Since our previous BTC price analysis, and following the trend, the Bitcoin breakout had reached a daily high of $5627 on Bitstamp. This is still not our expected target (around $5700 – $5800), however, this is crypto and anything can change anytime.
Since yesterday, the crypto markets are suffering from severe declines: Both in Bitcoin and especially among the altcoins. This includes Ripple that keeps decreasing against Bitcoin since 2019 had begun.
A quick overview to keep things simple: the hourly and the 4-hours chart reveal a double top in Bitcoin around $5625. This setting is a bearish formation. From the other side, Bitcoin is still getting support from the mid-term trend-line on the 4-hour chart, along with the stiff resistance turned support area at $5300 – $5350.
Total Market Cap: $176 Billion
Bitcoin Market Cap: $96.3 Billion
BTC Dominance: 54.6%
Looking at the 1-day & 4-hour charts
As mentioned above, Bitcoin is very close to the ascending trend-line marked in orange on the 4-hour chart, along with the $5400 support area. This trend-line is holding nicely for the past ten days. The next critical support level is the resistance turned support $5300 – $5350 zone. Below lie the $5200, $5100 and $5000 support levels.
From above, after failing to break-out the previous high at $5625, Bitcoin marked $5500 as the closest resistance level. Above, lies the mentioned $5600 – $5625 resistance, before reaching to the major area of $5700 – $5800, which held the 2018 bear market as last support level throughout 2018. In case of a break-up, the $6000 level is not expected to be easier to overcome.
– Trading Volume: looking on the 4-hour chart, we see that the sellers’ candles (in red) are decreasing over the past two days. This could turn bullish, combined with the Stochastic RSI oscillator which is deep in the oversold area.
– Daily chart’s RSI: The RSI level had dumped down to 68, which is considered a support range. It will be interesting to see if it can find the necessary support here.
– BitFinex open short positions: the number of short positions continues growing up over the past days, and currently stands at 25.7K BTC open short positions.