Crude Oil, Bitcoin (BTC) & AMC Rollercoaster – FinTwit Trends To Watch

U.S. CRUDE OIL (WTI) TRADING AT YEARLY HIGHS LAST SEEN IN 2018!

Upbeat U.S. PMI figures bolstered crude oil prices this week showing a prosperous manufacturing performance for the month of May. Both ISM and IHS Markit data estimates were exceeded further illustrating the sectors strength.

Although the Organization of the Petroleum Exporting Countries (OPEC) concluded that they will slowly reduce restrictions on production cuts going forward, price action continues to soar. All eyes will be on Iran around the much anticipated nuclear deal negotiations which will likely see a significant impact on the crude oil market as talks are underway in Vienna.

U.S. crude oil (WTI) daily chart:

oil daily chart

Chart prepared by Warren Venketas, IG

On the technical side, U.S. crude remains within the ascending channel (yellow) which is slowly approaching the key psychological $70.00 per barrel level.

ELON MUSK DISRUPTS BITCOIN (BTC/USD) RALLY

This week Elon Musk was back at it on Twitter with suggestive Tweets about a potential ‘break-up’ between himself and Bitcoin. BTC slipped roughly 5% on Friday wiping out much of the weeks' gains. This had a contagion effect across the broader cryptocurrency market with the second-largest crypto Ether down 6.5% (at the time of writing). It is likely this cat and mouse game between Elon Musk and the cryptocurrency market will persevere until such time as Bitcoin satisfies the billionaire's exacting demands. Regulation of market influencers may also curb the impact of Mr. Musk but for now, these seem a long way away.

Bitcoin (BTC/USD) daily chart:

Bitcoin daily chart

Chart prepared by Warren Venketas, IG

The daily Bitcoin chart broke out of the symmetrical triangle pattern (yellow) on Thursday with a candle close above triangle resistance. Traditionally, a break above or below may indicate further extension of that respective break but in this case, today's candle has pushed prices back into the triangle for now. It will be interesting to see how the day finishes off, with a close above triangle resistance potentially setting up the weekend for additional upside.

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