🚀Bitcoin Blows Past Key Resistance Levels and Has Room to Run, Analysts Say

🐺 Hi pack-mates,

This is Howling Markets, the newsletter that provides an insider look into the markets without committing any felonies! 

Today we will be covering:

• Education: What Is Technical Analysis? 🔎

• Goldman Sachs Analyst Was Convicted of Insider Trading 👮

• Bitcoin Blows Past Key Resistance Levels and Has Room to Run, Analysts Say 🚀

• Equity and Debt Markets Daily Update ⚖️

• And more!

Market Watch 👀

What Is Technical Analysis?

When talking about the different types of analyses that can be performed on a particular stock or company, two main alternatives come to mind: fundamental analysis and technical analysis.

Fundamental analysis is the research and understanding of all macroeconomic aspects and news that affect the company. When carrying out a fundamental analysis, the most important aspects that are kept under control are ratios, cash flows, dividend history and every macroeconomic news that might affect either the industry or the company itself.

On the other hand, technical analysis covers anything related to the actual stock charts and their day to day price movements. The most important aspects of technical analysis are candlestick patterns, chart pattern, support and resistance and technical indicators.

Generally technical analysis is used to forecast the price action over the short to medium term, whereas fundamental analysis provides a more long-term view of the health and price of the company in relation to what it could become over the long run.

Goldman Sachs Analyst Was Convicted of Insider Trading

Insider trading is the illegal practice of performing market trades based on insider information, meaning information that is not available to the broader public and which it has been accessed by the trader due to their professional ties to the traded company.

Insider trading is a severally punished crime all over the world, but it can quite a difficult one to identify, so most regulations often provide a set of rules a to make it difficult for directors to trade the stocks of their own company rather than only providing an after-the-fact punishment.

However, sometimes these regulations are not enough to stop this practice and in these cases some infringements can occur. One of the most recent examples is the case of Mohammed Zina, a 35 year old investment banker born and raised in the UK.

When he was younger, Mohammed wanted to become a cricket player, but due to some unfortunate events, his sports career did not play out. A couple of months after this event, he picked up an investment bank flyer and after reading the name of Goldman Sachs, he decided to apply.

In 2014 he was able to beat the odds and join the prestigious firm, however, just a couple of years later, he was promoted and came in contact with the insider information that costed him his trial.

Mohammed had set up a trading account under the names of his siblings and had taken out  a loan from Tesco bank with the alleged motivation of buying a house and a car. However, the money was deposited into the trading accounts and used to perform 49 illegal trades.

Zina was deemed guilty of all 9 charges of insider dealing and fraud and he was sentenced to 22 months in prison.

Today’s Howling Question

And now, it is time for our howling question!

Knowing that Bitcoin has had a great performance since the beginning of the year, and that the token has returned over 160% during 2023, by how much do you think it has appreciated over the last 12 months?

1. +80%

2. +120%

3. +140%

4. +180%

5. +220%

Try to answer the question by yourself, and then check the correct answer after the last interesting news!

Bitcoin Blows Past Key Resistance Levels and Has Room to Run, Analysts Say

On Monday, Katie Stockton, the founder and managing partner of Fairlead Strategies, sent a note to her clients analyzing from a technical point of view the latest developments in Bitcoin’s performance.

She communicated to her clients that it was finally confirmed on Sunday that Bitcoin had broken out of the $48,600 resistance level which had been a key level since the initial surge of the token in 2021-2022.

She believes that this price surge is a very strong indication of an intermediate-term positive performance. However, she mentioned that Bitcoin’s short term price structure was pointing towards a brief period of consolidation, but then, the price should continue to move higher towards the primary target at $56,400 and then the final target at $64,900, just a couple thousands below the token’s all-time high.

However, it turns out that Katie has been too bearish and, between Monday and Tuesday, Bitcoin’s price has gained almost 10%, and it is now already approaching the primary target.

Additionally, Katie also provided great news on the long-run view of Bitcoin. She mentioned that their indicators do not show any sign of the token being overpriced and she concluded her note by saying that Bitcoin could gain an additional 22% in the foreseeable future.

Equity and Debt Markets Update

And now, our daily markets update!

Tuesday has been an extremely interesting day for the US stock market. The trading session began with the price sliding down around -0.2%, but, during the very few hours of the day, SPX’s price picked back up and closed up +0.17%.

On the other hand, it was a much better day for the US government bond yields, further motivated by the approaching bond auction which will take place later this week. The 10 year benchmark rebounded off the 4.23% support level and closed the day up +0.47%

Answer

The correct answer is 3) 140%.

Since the 27^th of February 2023, Bitcoin’s price has increased by slightly more than 142%. This figure comes in a little below 2023’s performance because the 7 months between the end of February and the beginning of October have been the slowest due to a sideways performance.

If we extend our time frame to the beginning of 2023, the returns over these 14 months skyrocket to almost 240%!

Howl-Worthy Memes 😂

🐺 See you next time!

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