The U.S. equity markets are on tear -- as bitcoin stalls.
The S&P 500 index rallied from $2,856 to $3,154 in the eight weeks through Nov. 27 and was last seen trading at $3,112.
The bullish sentiment is so strong that the index has not suffered a 1 percent drop since the 1.6% decline on Oct. 8.
If the trend continues for another two days, it would be 2019's longest run without a 1 percent daily drop.
Experts are associating the solid rally with the Federal Reserve's balance sheet expansion. The central bank has been buying Treasuries since mid-September in a bid to calm the money
markets.
The balance sheet has expanded by more than $290 billion over the last three months.
Apart from that, the U.S.-China trade optimism may have played a role in pushing stocks higher.
While stocks have fared well, bitcoin has take a beating. The top cryptocurrency fell to six-month lows near $6,500 last week.
At press time, it is reporting a 10 percent drop on a quarter-to-date basis. Prices dropped nearly 23 percent in the third quarter. Meanwhile, the S&P 500 is up 4.57 percent on a quarter-to-date
basis and has not had a down quarter since the fourth quarter of 2018.
The data contradicts the argument put forward by many that bitcoin is a "risk asset" and closely follows the action in the equities.
That said, there is no evidence of bitcoin falling along with classic safe havens like gold, Japanese Yen and U.S. Treasuries.
All in all, bitcoin remains an uncorrelated asset. |
 
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Bull-Bear Stalemate
BTC: Price: $7,440 | Market cap: $135 Billion | 24-Hr Volume: $23 Billion
Trend: Bullish Bitcoin faced strong rejection at $7,800 on Wednesday and ended up forming an inverted hammer. The candlestick pattern has neutralized the immediate bullish view.
While it is widely considered a a bearish signal, traders usually wait for confirmation in the form of strong follow-through, preferably a convincing move below the low of the candle.
So,Wednesday's low of $7,087, if confirmed, will likely attract strong selling pressure, possibly leading to a drop to $7,500.
On the higher side, a close above $7,870 is needed to invalidate lower highs setup and confirm a short-term bullish reversal.
Long-term trend: Neutral
Bitcoin has found acceptance below the 50-week MA – a cause of concern for the bulls. Historically, the cryptocurrency has suffered deeper losses after falling below the key average.
Even so, the outlook remains neutral, as the miners’ reward halving, usually a price-bullish event, is due in May 2020. With BTC looking oversold on the daily chart, a notable recovery ahead of the supply-cutting event can’t be ruled out.
The outlook as per the weekly chart would turn bullish only if and when prices break higher from the five-month long bearish channel.
Read Analysis 
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Enjin Coin Hits Highest Since June 24 ENJ: Price: $0.089 | MCAP: $76 million | 24-Hr Volume: $49 million
Short-term trend: Neutral Enjin Coin's BTC-denominated exchange rate has jumped to 1287 sats on Binance, the highest level since June 24, having rallied more than 22 percent on Wednesday.
The cryptocurrency has likely picked up a bid in response to news that Microsoft has teamed up with Enjin to offer crypto collectible rewards.
With the sharp rise, ENJ has confirmed an upside break of a three-month channel, as seen in the daily chart below.
The bullish move looks to have legs, as the price breakout is backed by highest trading volume since March. Therefore, the psychological resistance of 1,500 sats could soon come into play.
It's worth noting that the 14-day relative strength index (RSI) is reporting overbought conditions with an above-70 print. So, the bullish momentum could weaken. Long-term trend: Neutral
The sharp rally seen over the last 48 hours has neutralized the bearish setup. The outlook would turn bullish if gains are sustained.
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| | | Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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