We are in the middle of quarterly results season, in which, for the moment, the recurring theme is one of the positive results despite the bad macroeconomic data and economic slowdown which has been present in recent weeks. 

The reality is that these positive results are the consequence of the strong economic recovery after the initial crisis caused by Covid-19. This, combined with the reaction of different organizations through aid and stimulus programs to reactivate the economy, led the stock markets to experience strong rises, reaching record highs. 

Therefore, although it is normal for these quarterly results to be more or less positive, we will have to keep a close eye on the evolution of macro data and the impact of the energy crisis on the markets, as the current slowdown could produce a deterioration that will be reflected in the results for the last quarter of the year.  

Yesterday's session saw another wide variety of quarterly results, among which, we will highlight the results of two market giants, Tesla and IBM. The company chaired by Elon Musk presented positive results, with net profits increasing by 389% in the third quarter of the year, reaching a profit of 1,618 million dollars and a cumulative profit for the first 9 months of the year of 3,198 million dollars.  

Despite the ongoing shortage of microchips and semiconductors, Tesla obtained Earnings per Share (EPS) of 1.86 dollars and record revenue of 13.76 billion dollars. These figures are compared to the expected EPS and revenue of 1.52 and 13.57 billion dollars respectively.  

We must also highlight IBM's results, as this technological giant obtained slightly worse results than expected by the market consensus, recording earnings per share of 2.52 dollars and revenue of 17.62 billion dollars, thus breaking the positive results presented in the last two quarters.  

However, once again, cryptocurrency is undoubtedly taking the majority of the market's attention, as Bitcoin is currently experiencing strong rises that have led it to set new all-time highs.  

These strong rises are being supported by the recent approval in the United States and the subsequent stock market debut of the new ProShares Bitcoin Strategy ETF - which is currently available to all our clients through the Invest.MT5 account at Admiral Markets PTY and Admiral Markets AS Jordan under the symbol (BITO.US).    

As we mentioned in our analysis of 24 September, Bitcoin found strong support at the $40,000 level, this being the starting point of the last strong upward momentum that has led it to set new all-time highs.  

Looking at the daily chart, after repeatedly bouncing off its important support/resistance level in the orange band, the price experienced a strong bullish momentum which was reinforced on 3 October by the bullish crossover of its short and medium-term moving averages, the bullish crossover of the 0 line in its MACD indicator and the entry into overbought levels in its stochastic indicator. 

This triple signal triggered a strong bullish momentum that took the price above the important psychological level at 50,000 dollars, triggering a strong rally that in just 2 weeks has led the price to set new all-time highs after surpassing the 100% Fibonacci extension level.  

For the moment, and despite the fact that the price is trading far from its moving averages, as long as it is able to maintain its first support level in the area of the highs of 14 April, sentiment will remain positive and this momentum could continue until it reaches the next Fibonacci extension level around $69,000.  

However, we cannot rule out the possibility of a correction in the price with the intention of taking profits and alleviating the accumulated overbought levels, so we will have to keep a close eye on the support levels going forward. 

(Click on image to enlarge)

Depicted: Admirals MetaTrader 5 – BTCUSD Daily Chart. Date Range: 4 January 2021 – 21 October 2021. Date Captured: 21 October 2021. Past performance is not a reliable indicator of future results. 

Evolution of the last five years: 

• 2020: 302.3% 
• 2019: 94% 
• 2018: -73.2% 
• 2017: 1337.7% 
• 2016: 124.1%