Can Bitcoin Hold $10K?

The trading week has yet to officially begin here in the U.S. — but bitcoin is already starting the week off on the wrong foot.

The flagship cryptocurrency suffered a Sunday evening drubbing, spiraling lower by more than 10%. By 8 p.m., bitcoin was testing critical support near $10,000 — a level it has not materially breached since mid-June. It sits just above $10,300 this morning following yesterday’s abrupt reset:

BTC

Of course, the financial media is bending over backward to somehow pin the Sunday drop on Trump’s anti-bitcoin comments. Trouble is, Trump trashed bitcoin on Thursday night. I seriously doubt there’s a three-day news delay in whatever high-tech cave that houses all the crypto-nerds.

Analysts and talking heads have since picked apart the president’s complaints regarding bitcoin and Facebook’s new crypto project, Libra. Yet up until Sunday afternoon, traders weren’t making much of a fuss about it. Maybe Trump isn’t to blame at all. The red-hot rally could have simply run out of steam.

As I mentioned Friday, bitcoin has experienced increased volatility since tagging $14,000 last month. It had also been much more resistant to negative news than it was before its April breakout. This week’s reaction to support at $10,000 will show us just how resilient this year’s rally can be when the pressure’s on…

Next up: The biggest global IPO of 2019 is officially cancelled.

Anheuser-Busch InBev (NYSE:BUD) announced Friday that its cancelling the initial public offering for its Asia Pacific unit, Budweiser Brewing Company APAC, CNBC reports. The stock was originally set to launch on the Hong Kong Stock Exchange.

Budweiser APAC claims “several factors, including the prevailing market conditions” convinced management to back out of the offering.

That’s a pretty vague answer for what would have been a nearly $10 billion offering. Don’t get me wrong — I’m sure trade war tensions have been a factor. But Budweiser APAC may have had trouble finding enough enthusiastic institutional buyers, CNBC reports, noting “some large long-only U.S. investors, which are often prioritized in an IPO, offered below the HK$40 per share level.”

Either way, it’s tough trying to survive in the booze business these days — especially when it comes to beer.

Earlier this year, we showed you how 2018 was the worst year for beer sales in a decade. While craft beer has surged in popularity, it’s quickly taking a back seat to hard seltzer, wine and even pot as legalization spreads across the country.

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Despite the industry’s grim outlook, BUD shares have boomed this year. They’re up 34% year-to-date, even when factoring in this month’s hard reset.

BUD

In early March, I said it’s possible we were entirely underestimating Big Beer’s chances at a major comeback. Since then, BUD has extended its breakout move sparked by an impressive fourth-quarter earnings beat. Anheuser-Busch InBev even expects strong growth during the 2019 fiscal year — a development that directly contradicts the narrative spreading through the financial media.

Macro beers will almost certainly continue to face pressure from the rise of cannabis and competing beverages. But BUD shares continue to hold their own.

Finally, it looks like you might have a chance to own some genuine space memorabilia.

It’s the 50th anniversary of the Apollo 11 moon landing later this week. If you have some trading profits burning a hole in your pocket, Sotheby’s has you covered.

The auction house is selling everything from models of Apollo capsules to first-generation video tapes of Buzz Aldrin and Neil Armstrong walking on the Moon. While you’d have to drop up to an estimated $2 million for the tapes, spacesuit blueprints run for around $1,100.

It’s the perfect early Christmas gift for the wealthy space enthusiast who has everything!

Of course, if you’re looking for an even more authentic Apollo souvenir, just track down Buzz Aldrin and pester him about how the moon landing was a hoax. I’m sure he’ll give you a free shiner for the effort.

Sincerely,

Greg Guenthner

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Greg Guenthner

Greg Guenthner, CMT, is the editor of Opening Bell Fortunes and Seven Figure Signals. He has been with Agora Financial/Seven Figure Publishing since 2005. In 2019, the average position in Greg’s Sunrise Fortunes portfolio outperformed the S&P 500 by 1.65x.

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