Is this chart is familiar to you?
Doesn't it look like a nice bull run?
Yeah, I know we all miss those days. But this chart is actually the S&P 500 index, which represents the performance of the 500 largest market cap company traded on the stock market.
When the Bulls get exhausted, the Bears crush them hard!!!
!
And we know what it is, we've been in since last January, a totally different feeling. The bear market in crypto land might come to an end pretty soon. Either to the end of we go down to winter season witch both will be really interesting for you, me and any investor.
TA of the stock market & BTC
S&P500 showed a drop of 10% since October 1st testing the last support of July. The problem is with the stock market, there is not a lot of previous support and the tiny previous support have been tested once.
We can see what a perfect bear market look like by looking at the BTC/USD chart for the last years. The bears has test almost every single support that hasn't been tested before. Almost because the 5200$ $ 3000$ are still untested.
Correlation between Stock market and Crypto market
Is there is one?
Comparing the two chart, we can assume the
January drop in the stock market in addition with the bit connect scam and multiple bad news and incertitude drive the crypto market in the hand of the Bears.
Stock market has recovery since and made a new all time high
Has the overall stock market drop in value, #BTC has been showing no interest at all from either the buyer or the seller. There is no volume from either side, making it a NO TRADE ZONE trading at these levels is pure GAMBLING.
Top's market cap Crypto are so boring right now, big profit, as been seen on the ALT coin market. Down trend has changed on many at coin showing some easy 20% gains since the last tether FUD that shake BTC & Cie.
Now what?
As much as I wanna see the world financial system collapse... If Stock market retrace July 2016 support, it's not gonna be cool! Interest rates will rise, people will lose their job, their home. There is no blue sky and happy flowers ahead.
Trading BTC right now is a pure gambling, As long has no volume get into the market, there is no real way up. There is announcement that money will come, but again when?.
If it doesn't go up, It might go down.
And that would be the best scenario I can see has we may enter in a crypto winter. Going to the down level of 5200$ to 3000$ for BTC the resistances and support levels that have not been tested are a 30% of each other, and there is many. Many means a lot of volatility, a lot of opportunity and a very attractive price for institutional money.
What do you thing?
Until then trade safe or HODL
It's fascinating to watch. Be nice if some of the money coming out of the S&P went into the crypto market. Guess we'll have to wait and see what happens.
Waiting is the best strategy in my opinion. Move will be drastic, but there is no way to predict the side it will go
Posted using Partiko iOS
Personally, I find it hard to believe btc going below $5000 but there is a huge opportunity for other bloxkchains if this does happen.
Posted using Partiko Android
We don't have any volume since last June and as stock is going down.... I doubt money will switch into crypto as structure are not ready yet... But everything is possible! 😉
Well, no one likes to see BTC go down to 3000. But there's a possability. I have a strange feeling. I think it will go up that's why i bought more.
I try to leave my feeling aside when I take a position in or out. The good news is, it will eventually go up. I won't step back in btc & eth before resistance break firmly with volume 7000$ & 225$
Posted using Partiko iOS
Yea, everyone should leave their feelings aside by taking a position. Definitely makes sense not joining before a resistance break...