Bitcoin is clinging to the key $100K level, while Salesforce sits on a key support area. The Daily Breakdown dives in.
Before we dive in, let’s make sure you’re set to receive The Daily Breakdown each morning. To keep getting our daily insights, all you need to do is log in to your eToro account.
What’s Happening?
Markets enjoyed a strong rally on Monday — one that put the S&P 500 back within 1% of its all-time high. The rally wasn’t a surprise given the bounce we saw on Friday and the positive news headlines over the weekend. It also helped that the crypto space was rallying.
Bitcoin, Ethereum, Solana, XRP and others were all solidly above their Friday low as we kicked off Monday’s trading session. While it’s tough to say that we’re completely out of the woods, the crypto market has, at the very least, temporarily found its footing.
Technical and Fundamental Drivers
Bitcoin tested the ~$99K area in three out of four sessions last week, but not once did it close below $100K. This psychologically key area is holding up as support, which is a good sign for worried investors. Now though, bulls need to see BTC regain the $107K to $111K zone to see a sustained rally, as this was a key support zone before breaking earlier this month.
As my colleague Lale Akoner wrote: “The old four-year boom–halving–bust cycle is fading fast. With over 93% of Bitcoin already mined, halvings now move sentiment more than supply…Roughly 400,000 BTC have shifted from long-term holders to institutional investors in just the past month. Each dip is met with accumulation, not panic. Volatility is compressing, now below 30%, a level unseen since pre-ETF days, signaling that Bitcoin is behaving more like a structural asset than a speculative one.”
Want to receive these insights straight to your inbox?
The Setup — Salesforce
Some stocks continue to get left behind in the tech rally — like Salesforce. We did a Deep Dive on CRM earlier this year, which found that the stock is trading at a trough-level valuation despite steady expected growth. While that doesn’t mean the stock will pan out as a winner, investors are taking a closer look at Salesforce as it tests recent support.
Salesforce stock is dipping into the $230s, which has been support since the stock’s major breakout in Q4 2023. Further, the 200-week moving average comes into play in this area, offering another potential support layer. If this level holds, a larger bounce can ensue. It’s worth pointing out that CRM was recently trading above $260. If support breaks though, it could usher in more selling pressure as momentum turns more bearish.
Options
Buying calls or call spreads may be one way to take advantage of a pullback. For call buyers, it may be advantageous to have adequate time until the option’s expiration. For those that aren’t feeling so bullish or who are looking for a deeper pullback, puts or put spreads could be one way to take advantage.
To learn more about options, consider visiting the eToro Academy.
What Wall Street’s Watching
Shares of CoreWeave are down nearly 10% this morning after the firm reported its quarterly results. Revenue soared 134% to $1.36 billion, which beat analysts’ expectations of $1.29 billion. However, guidance disappointed, with management expecting 2025 revenue of $5.05 billion to $5.15 billion — which is below the $5.29 billion consensus. Dig into the fundamentals for CRWV.
Shares of Nvidia roared back to life on Monday, jumping almost 6% on the day. However, the stock is down almost 2% in pre-market trading today on news that SoftBank sold its stake in Nvidia, unloading its $5.8 billion position in order to fund other investments. Check out the chart for NVDA.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.