Bitcoin price surprises again! Traders eyeing $43,000 target

Bitcoin price has rallied by 30% since the lows of late January.

Bitcoin price rally by as much as 30% since the lows of late January has the token testing the upper end of its 20-day bollinger band (Reuters)

Bitcoin price rally by as much as 30% since the lows of late January has the token testing the upper end of its 20-day bollinger band, a technical pattern that could signal resistance. A close above that level, currently around $43,000 (roughly $200 above its current price), may imply sustained strength. But the last time Bitcoin briefly touched the upper end, in late December, it went on to plunge as much as 36% before starting to recover. 

Stock Dip Limited by China Rally; Bonds Pressured: Markets Wrap

(Bloomberg) A rally in Chinese shares Monday helped to limit a drop in Asian stocks, while global sovereign bonds remained under pressure amid intensifying bets on monetary-policy tightening to fight inflation.

A Chinese equity benchmark climbed about 2% after reopening from a holiday, playing catch-up to last week's gains in global equities. But a Hong Kong technology gauge retreated, sapped by Alibaba Group Holding Ltd. on speculation SoftBank Group Corp. may sell some of its shares in the firm.

S&P 500, Nasdaq 100 and European futures rose. The dollar ticked up, the euro slipped and commodity-linked currencies were higher. Oil's rally paused at $92 a barrel.

Markets now expect more than five quarter-point Federal Reserve interest-rate hikes in 2022 to quell inflation following a strong U.S. jobs report. Treasuries mostly held losses from last week and Australian bonds slid. Japan's 10-year bond yield reached the highest since early 2016.

Investors are grappling with the prospect of the biggest tightening of monetary policy since the 1990s. Traders are awaiting the US inflation report this week, which could lead to more market volatility by shaping views on Fed tightening. A reading north of 7%, the highest since the early 1980s, is expected.

The Fed is in a difficult spot, “trying to manage the real economy where we see that hot inflation and the financial economy, which quivers every time we talk about rate rises,” Karen Harris, Bain & Co. global head of macro research, said on Bloomberg Television.

Elsewhere, European Central Bank Governing Council Member Klaas Knot said he expects a rate increase as early as in the fourth quarter. The ECB last week made a hawkish pivot, with President Christine Lagarde no longer excluding a rate hike this year. That has pressured European sovereign debt.

“The momentum trade has been to short bonds and many are now fearing higher bond yields will really start to bite in equity land,” Chris Weston, head of research with Pepperstone Financial Pty Ltd., wrote in a note.

In the latest on Ukraine, President Joe Biden and his French counterpart Emmanuel Macron spoke about responding to Russia's military buildup on the Ukrainian border. Moscow has repeatedly denied that it plans an attack.

On the virus front, Hong Kong is set to report another record number of infections. Australia will allow double-vaccinated visa holders to enter the country from Feb. 21, ending about two years of strict international border controls. China locked down a city of 3.6 million people.

Here are some events to watch this week:

Earnings: AstraZeneca, Commonwealth Bank of Australia, GlaxoSmithKline, Pfizer, SoftBank Group, Toyota Motor, Twitter, Uber, Walt Disney

Federal Reserve Bank of Cleveland President Loretta Mester speaks Wednesday

Reserve Bank of India rate decision Thursday. The meeting was postponed to mourn the death of a celebrated singer.

Bank Indonesia rate decision Thursday

U.K. Bank of England Governor Andrew Bailey speaks Thursday

U.S. CPI, initial jobless claims Thursday

Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.1% of 7 a.m. in London. The S&P 500 rose 0.5% Friday

Nasdaq 100 futures advanced 0.2%. The Nasdaq 100 rose 1.3% Friday

Japan's Topix index fell 0.2%

Australia's S&P/ASX 200 Index shed 0.1%

South Korea's Kospi index fell 0.2%

Hong Kong's Hang Seng Index fell 0.3%

China's Shanghai Composite Index rose 2%

Euro Stoxx 50 futures increased 0.8%

Currencies

The Japanese yen was at 115.35 per dollar

The offshore yuan was at 6.3631 per dollar

The Bloomberg Dollar Spot Index rose about 0.1%

The euro was at $1.1431, down 0.2%

Bonds

The yield on 10-year Treasuries dipped one basis point to about 1.90%

Australia's 10-year yield increased four basis points to 2%

Commodities

West Texas Intermediate crude fell 0.3% to $92.06 a barrel

Gold was at $1,810.83 an ounce, up 0.2%