Crypto has been closely tracking the QQQ. Today was the largest % decline for the Nasdaq 100 in the current bear market on the heaviest down volume since 2011. It also came after a significant up day, possible creating a huge bull trap. This volatility reminded me of some of the days we saw in the Covid crash of March 2020. It appears hedge funds are blowing up and becoming forced sellers.
If the QQQ continues to new lows on heavy volume, I think Bitcoin has the potential to crash towards the 200wma, which was support in both the 2018 taper tantrum and the 2020 Covid crash. It's also near the prior ATH in 2017 of ~$20K, the most significant breakout of the last couple years.
If this plays out, I expect the Fed to pause or reverse course on QT, which will put in a bottom.
If the QQQ continues to new lows on heavy volume, I think Bitcoin has the potential to crash towards the 200wma, which was support in both the 2018 taper tantrum and the 2020 Covid crash. It's also near the prior ATH in 2017 of ~$20K, the most significant breakout of the last couple years.
If this plays out, I expect the Fed to pause or reverse course on QT, which will put in a bottom.