Adam Vettese (eToro) | Bitcoin has extended its losses this morning, with the cryptoasset losing another 0.5% to add to yesterday’s 4.5% fall. The key resistance level of $10,000 is proving to be a difficult hurdle to overcome, with several failed attempts this month. It is now back trading close to the $9,000 mark. Bears could see this as a sign the momentum may be shifting following the two month price rally.
However, bulls could argue that the level will break eventually if it keeps being tested. Also, we have seen record open interest in CME Group’s bitcoin options which indicates bullish sentiment from institutional investors. The price also remains above the 50, 100 and 200 day moving averages.
Elsewhere, Ethereum also saw heavy losses, nearing 5% down to $199.44 this morning. Likewise XRP was down, albeit by less at around 3%, now trading at $0.20.
What to watch
Alibaba: Chinese e-commerce and internet giant Alibaba reports its latest set of quarterly earnings this morning New York time. The firm’s Nasdaq listing is flat year-to-date, and up 36% over the past 12 months. Alibaba’s report follows strong results from JD.com, another major Chinese online retailer, and Amazon posting a surge in revenues. Reports that Baidu is considering delisting from the Nasdaq exchange could potentially be raised by analysts on the firm’s earnings call, and they will also be looking for any insight the firm can provide into China’s economic reopening, as well as whether its cloud business has given its quarter a boost.
Deere Company: Farm equipment maker Deere’s share price is down 17.6% year-to-date, lagging the broader market, although investors will be hoping the company’s business has held up relatively well given that agricultural products are still in demand despite the pandemic. Deere’s earnings are impacted by global trade, however, plus the shutdown of its facilities due to the pandemic, and the economic uncertainty at present may have put some customers off making significant investments in new equipment. Analyst expectations for the firm’s earnings per share figure for the quarter being reported have fallen from $2.91 three months ago to $1.69 now.
Pinduoduo: Pinduoduo is another Chinese e-commerce firm with a Nasdaq listing, that has enjoyed a huge share price rally in 2020 so far — jumping by more than 50%. The company reports its Q1 earnings results on Friday morning New York time, after being downgraded from a buy rating to neutral by a Bank of America analyst. Pinduoduo has a unique social element to its online shopping platform, and has more than half a bill
