The bulls have finally charged and attacked the ranks and files of Bitcoin bears who have been parading around celebrating their short-lived victory over the bulls. We warned last week that the bearishness in BTC/USD would not last for long and that one final move to the upside was yet to be seen. Now that the new week has begun, Bitcoin has pumped past $9.2k and is eyeing further upside. Many bears were taken aback by this move but those that heeded our warning from last week are now prepared and in a better position to capitalize on this recent development.
One of the external clues that convinced me recently that the market would make a big move today was a surge in the Shanghai Composite Index (SHCOMP). We have previously noted some correlation between Bitcoin and Chinese stocks and forex markets. This was a sign that the cryptocurrency market could piggy bank off of this move and sure enough it did. Now that the market is ready to surge higher, let’s talk about targets. As expected before, we are aiming for $9.4k near-term which would also coincide with a retest of the 50-moving average but the price could end up shooting towards $9.7k.
Meanwhile, Bitcoin dominance (BTC.D) is starting to decline, also as we expected. Altcoin pairs are rallying against Bitcoin again. The EUR/USD forex pair has printed a similar fractal to one that we see on the Shanghai Composite Index and even Bitcoin. This goes on to show how these markets closely follow each other. We have been bullish on the S&P 500 (SPX) and had been expecting further upside. The stock market is well positioned for further upside from this point forward and we are looking forward to another bullish advance near-term.