Bitcoin Nears $90k Mark, Eyes $100k With Strong ETF Inflows

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com]

  1. Moving the market

The markets began the session moving sideways to lower, as traders appeared to take a breather from the highs reached in the post-election rally.

Bond yields climbed, with the 10-year yield advancing nearly 0.12% to close at 4.43%, marking its highest level in five months. This increase in bond yields was sufficient to push equities downward and the dollar upward.

The anticipated short squeeze was notably absent, leading to a significant decline in Small Caps, followed by gold, which dropped to two-month lows due to the dollar’s continued strength.

Bitcoin once again emerged as the top performer of the day, coming within a few dollars of crossing the $90 level, and even briefly surpassing it after hours. The cryptocurrency received substantial support from massive inflows into Bitcoin ETFs.

With the resurgence in global liquidity appearing robust, Bitcoin seems poised to potentially surpass the much-anticipated $100,000 price point.

Will it happen this month?

2. Current “Buy” Cycles (effective 11/21/2023)

Our Trend Tracking Indexes (TTIs) have both crossed their trend lines with enough strength to trigger new “Buy” signals. That means, Tuesday, 11/21/2023, was the official date for these signals.

If you want to follow our strategy, you should first decide how much you want to invest based on your risk tolerance (percentage of allocation). Then, you should check my Thursday StatSheet and Saturday’s “ETFs on the Cutline” report for suitable ETFs to buy.

3. Trend Tracking Indexes (TTIs)

Following last week’s impressive surge into record territory, the major indexes faced a moderate reversal.

This shift was largely influenced by the 10-year bond yield, which rallied to its highest levels in five months, dampening the previously positive market sentiment.

Despite this pullback, our TTIs remain firmly on the bullish side of their respective trend lines, indicating continued optimism in the market’s overall direction.

This is how we closed 11/12/2024:

Domestic TTI: +9.19% above its M/A (prior close +10.03%)—Buy signal effective 11/21/2023.

International TTI: +4.04% above its M/A (prior close +5.38%)—Buy signal effective 11/21/2023.

All linked charts above are courtesy of Bloomberg via ZeroHedge.

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