U.S. Stock Market Hits Record High, Bitcoin Rebounds from Bottom, Surpasses 43K Resistance Line
The US stock market rose yesterday, with the S&P 500 index closing above 4,900 points, reaching another all-time high along with the Dow Jones Industrial Average. Bitcoin also rebounded from last week’s low and has now surpassed the 43K resistance. Matrixport analyst Markus Thielen believes that it has now entered the fifth wave of the Elliott Wave Theory, with a price target of $52,671.
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Market focuses on tech stock earnings and Fed interest rate decisions
Bitcoin has rebounded since last week and has surpassed the 43K resistance
This week, major tech companies’ earnings will be announced, including Alphabet (GOOGL-US), Microsoft (MSFT-US), Apple (AAPL-US), Amazon (AMZN-US), and Meta (META-US). Whether these tech giants can deliver impressive results as expected and lead the stock market’s rise this year will be closely scrutinized by investors.
The first interest rate decision of 2024 will also be announced on Thursday, 2/1, Taiwan time. Although the market generally expects the Federal Reserve to maintain rates at a high range of 5.25% to 5.5%, investors will infer the future pace of rate cuts from Chairman Powell’s post-meeting press conference. At the December meeting last year, Powell mentioned for the first time that officials had started considering rate cuts, which increased optimism in the market about a soft landing for the US economy. Previously, most investors even expected the Federal Reserve to start an interest rate cut cycle in March.
However, after the recent strong economic data, market expectations for rate cuts have been pushed back to May, and the non-farm payroll figures to be released this Friday will also be one of the market’s focal points.
Matrixport analyst Markus Thielen stated on the 26th that he turned bullish on Bitcoin when it reached $40,100. Their indicators had shown that Bitcoin could retrace to the $36,000/$38,000 level, and indeed, Bitcoin fell to $38,500, almost reaching their predicted target.
Markus Thielen cited the well-known technical indicator Elliott Wave Theory, stating that the recent pullback from around $49,000 to $38,500 formed the fourth wave, and the fifth wave has now begun. Once it breaks through $43,000, a bullish position should be reestablished. He also expects the fifth wave to potentially complete in the first quarter, with a price target of $52,671.
(Via: Matrixport analyst: Bitcoin’s “fourth wave” ends and turns bullish, with a price target of $50,000 in the first quarter)
Markus Thielen
Bitcoin
US stock market
Federal Reserve
Further reading
Why is there no Bitcoin ETF? Vanguard explains: Immature speculative asset without intrinsic value
“For our future, we need to invest in Bitcoin”: 60-year-old woman in Keelung falls victim to romance scam.
