Practicing trader and ForkLog Hub resident Pavel Gromov talks about the current market situation.
</p>Bitcoin inworked out the accuracy of the previous forecast. At the weekend and at the time of writing, the first cryptocurrency was trading in the range of $ 7500- $ 7800. Attempts to gain a foothold above $ 7800 have so far failed.
What is in traditional markets?
In traditional markets, the week began with a rise in Asian indices and a drop in oil.
</p>The main event of the week in the stock markets will be reports of IT giants. April 28-30, Amazon, Apple, Microsoft, and Alphabet (Google’s parent company) release reports.
These four companies account for almost 18% of the S&P500. It was they who ensured the growth of the index in the last month, while they themselves grew much stronger than the market (among the leaders was Amazon, which showed more than 40% growth since mid-March). Better-than-expected reports will send the S&P 500 towards 3000, while negative reports could cast doubt on and correct all or a significant portion of previous gains.
My expectations — Amazon will do best. The company only benefited from the virus situation due to the growth of online deliveries. Last month it hired 100,000 people.
</p>Microsoft will be the worst offenders, as their software is not essential in a crisis.
If the reports are positive and the S&P 500 grows, Bitcoin will consolidate above $7,800, after which moving above $8,000 will be a matter of a few days (or maybe hours).
Negativity in the reports and the fall of the S&P 500 to 2700-2600 — Bitcoin remains in the range of $7500-$7800 with a possible move to $7300.
I expect the most volatility on April 30th. On this day, an Amazon report is released, there will be an expiration of Brent oil futures, as well as an expiration of bitcoin futures.
What do the graphs say?
Traded in the range of $7388 — $7610 for Bitcoin ended with a continuation of the upward movement.
TradingView Chart
Key support level at $ 7555.
This level is the upper limit of the previoustrading and accumulation zone according to the volume profile. In this trade, buyers gained some positions. Only with its breakdown ($ 7555) can we talk about the cancellation of the upward scenario.
This means that at the moment the main scenario — continued growth to the levels of $7969-$8200.
Attention!
Financial market forecasts are privateopinion of their authors. Current analysis is not a guide to trade. ForkLog is not responsible for the results of work that may arise when using trading recommendations from the submitted reviews.
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