Top Five Products This Week

1. Bitcoin

Bitcoin market remained volatile last week, with the highest reaching $39475 and the lowest falling to $33380.

China has stepped up its crackdown on bitcoin trading and mining, blocking a slew of cryptocurrency-related accounts on the Twitter-like Weibo platform over the weekend.

The latest purge comes as Beijing pledges to crackdown even further on cryptocurrency mining activities. The government has repeatedly warned about cryptocurrency’s financial risk.

Chinese authorities have recently cautioned on crypto trading and mining, which have put pressure on prices.

Bitcoin price fell by 4.4% within 24 hours.

However, as Bitcoin continues to fluctuate in a narrow range, a retest of the $30,000 level could also be in play until more positive catalysts emerge.

Tesla billionaire Elon Musk, after helping the bitcoin price reach never-before-seen highs this year with a $1.5 billion bet on bitcoin, appears to have abandoned the cryptocurrency for ethereum and the meme-based dogecoin.

Elon Musk tweeted a meme about a couple breaking up over the male partner quoting Linkin Park lyrics, adding the hashtag #Bitcoin and a broken heart emoji on 4 June.

It’s not the first time Musk’s tweets about crypto have moved the market. In May, he said that Tesla would stop accepting bitcoin as a payment method due to concerns over its energy usage, shaving hundreds of billions of dollars in value off the entire crypto market in a single day.

Tesla holds 43,200 bitcoins, currently worth about $1.52 billion, according to bitcointreasuries.org. 

Nayib Bukele, President of Central American nation El Salvador said that he will send proposed legislation to the country's congress that would make the cryptocurrency legal tender this week.

The news has a certain boost to the market, but it is unrealistic to use Bitcoin as a currency.

Analysis believes that Bitcoin can never become a substitute for legal currency, and it is not in competition with legal currency.

2. Ethereum

Ethereum market fluctuated upwards last week, with the highest reaching $2891 and the lowest falling to $2180.

The global pressure on cryptocurrency supervision continues to increase, the market is still consolidating at a low level, and the transaction volume has also declined.

"We are currently witnessing stability in the cryptocurrency market. If we consider the past two weeks, prices of both BTC and ETH have been range bound. Consolidation is good as it allows the market to build up the momentum. Among the Altcoins, it might be an interesting week for Ripple and Dogecoin," Edul Patel, CEO and Co-founder, Mudrex.

Meanwhile, over 12,000 participants descended on Miami to attend a two-day Bitcoin conference the city hosted this week. Miami is hoping to become the next cryptocurrency hub.

3. Taiwan Stock Index

Taiwan is battling a spike in domestic infections and has vaccinated only about 3% of its population.

Despite the severe COVID-19 in Taiwan, analysis believes that the impact of the epidemic on Taiwan stocks has gradually faded.

Recently, the broader market has shown a benign stock rotation and the economic fundamentals are stable. Taiwan stocks are still optimistic about the long-term performance. It may face high-end shocks in the short term. Investors are advised to carefully select industries that are profitable in receiving orders and strong in business activities.

4. Silver

Silver prices ended lower last week and fell by 0.51% at $27.79 per ounce.

Silver prices witnessed decline following weak industrial metals and fall in precious metals. The CFTC data showed that money managers decreased their net long positions by 2765 lots in last week. 

Silver prices are likely to be remain subdued and confined to a range in the near term.

The medium-term outlook for precious metals remains positive.

While there is a possibility of either a short-term consolidation or a minor cool-off, the medium-term uptrend is likely to reassert itself once the anticipated cool-off happens.

According to the Economies.com, silver price provided clear positive trades in the previous sessions but it stopped at the EMA50 that formed good resistance against the price, accompanied by witnessing clear negative signals through stochastic, which forms negative pressure that we expect to push the price to resume the decline again, on its way to visit 26.85 as a first target.

Therefore, we will continue to suggest the bearish trend for the upcoming period unless breaching 27.80 and holding above it.

5. Tesla

Tesla has fallen by about 4.2% last week, and has fallen by more than 15% this year. It has fallen by more than 30% since its peak at the end of January.

The Tesla Model S Plaid Plus is dead, according to a tweet from Elon Musk on Sunday. Why? Musk says there's "no need," because the standard Plaid is "just so good." It's not clear what -- if any -- factors led to the model's demise, but reservation holders of the model are being contacted and asked to accept a standard Model S plaid instead.

Long-time Tesla Inc executive Jerome Guillen, who oversaw its Semi electric trucks slated to be launched this year, has left the company, Tesla said on Monday, barely three months after taking over the role, Reuter reports.

He was one of Tesla's top four leadership members, including then CEO Elon Musk Dan Levy, a Credit-Suisse analyst said in a note the departure is "negative given Guillen previously viewed as central to Tesla" as he was "arguably key in stabilizing auto biz post Model 3 launch" in 2017.

Tesla is under pressure recently, but TradingAnalysis.com founder Todd Gordon says that spells opportunity for savvy investors to build out a position.

He said the long-term prospects for Tesla look strong and he predicted that CEO Elon Musk’s electric vehicle maker will marry with his space exploration company SpaceX to give it a cutting-edge advantage in the space.

“Tesla, with its efforts in space with SpaceX, with Starlink, they just launched another mission, ultimately I think the game will be won when global internet connectivity from the sky links all the Tesla’s fleet whether it’s taxis or individual passenger cars, so I think Tesla is going to control it,” he said.

On a shorter-term basis, Gordon said its technical setup points to upside.

“I think we might have … a little bit more consolidation through the summer before we ultimately move higher. I think, however though, that the lows are in place with Tesla and I think the reward is very large compared to the risk,” said Gordon.

That bullish outlook changes if Tesla breaks below $545 a share, but Gordon does not expect that. It closed Thursday at 572.84.

Gordon sees two ways to play its pullback. The first, he said, is to buy the stock outright and add a stop order at $550.

The second is to look to the options market. He targets a retest of its $700 region heading into earnings expected in late July or early August.

“A trade you can do is do a call spread, buying the 650 strike call in those July [16] monthly expirations, selling a 700 call, a $50 spread for which you will pay $11.20,” said Gordon. “I have $1,100 roughly of risk to make 3800. Really good reward-to-risk ratio.”