Bitcoin / ARK 21Shares Bitcoin ETF (ARKB)
Bitcoin is engaging the next stage of its long-term rally this morning as the cryptocurrency moved into what I refer to as a “Volatility Surge.” These volatility surges start with a large one-day move followed by a steady trend higher as “the crowd” chases the asset higher.
Bitcoin had been consolidating just under $52,500 for the last two weeks as investors contemplated the assets next move. That consolidation is now resulting in a bullish surge in prices.
The last time we saw a Volatility Surge in Bitcoin was February 9 when prices jumped 4%. That one-day move triggered a six-day, 12% rally.
Today’s jump is likely to be the first step on the way to $65,000, a 15% rally from current prices.
Remember, we still have assets flowing into newly created ETFs and the upcoming “halving” as fundamental catalysts for the ongoing rally.
SoundHound AI
Shares of SoundHound (SOUN) are on the run again this morning as traders are trying to squeeze into the shares again.
Last week, the company’s announcement that Nvidia (NVDA) had taken a position in the stock, resulting in a massive wave of buyers and a doubling of the stock. Now, the buyers are coming out in force again after a short consolidation.
Yesterday’s 50% rally took the price of SOUN shares above $5, a critical level. Traditionally, institutions avoid stocks that trade below $5, but that’s now changed. The new $5-plus price means that we’re likely to see the big guns start accumulating the stock, driving prices towards $10.
Hims & Hers Health
Healthcare stock, Hims & Hers (HIMS) is running higher today after the company provided better-than-expected earnings results after the close on Monday.
This healthcare stock surged into the healthcare space a few years ago with their shares IPO in January 2021. You could not have timed the growth of this company any better with the COVID-19 pandemic providing a great launching pad for the stock.
Three years later, Hims and Hers continues to flourish as the company’s patients are happy to continue their online treatment.
Like shares of SOUN, the current rally in HIMS moves the price above $10, which is a huge psychological “trigger” price. Last week, HIMS shares tried breaking above $10, but were rejected. Last night’s earnings results are the catalyst to break the stock out to new all-time highs, something that will garner the attention of traders.
Stocks that emerge from the sub-$10 price range tend to accelerate their rallies, targeting $20 as investors love strong low-dollar stocks.
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About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.
