Based on the current economic situation, plus the movements in the equities there are possibly two scenarios here. We know that Bitcoin has followed equities market for a few years now.
If you want evidence of this, just compare Nasdaq or Dow over Bitcoin and you will see Bitcoin followed most of the moderate to big moves of equities.
Based on the MACD for the 1-Month, if we cross into a bearish territory, we can see bitcoin fall below $25,000 or further. There might be the possibility of a head and shoulders forming as well.
Scenario 1:
- As we suspect a bear market due to interest rates, tapering, and shrinking balance sheet.. bitcoin will most likely follow equities in a steep sell off.
Scenario 2:
- In this scenario, we can see a selling with equities but if people somehow believe Bitcoin is a safe-haven than we can see money move from equities into crypto. This is not likely as most investors aren't very keen on the stability of bitcoin. March 2020 probably shocked most investors with Bitcoin losing 58%. Truth is, the rally in Bitcoin comes as the same time as the rally in equities, so it begs the question, was it investors piling into a "safe-haven" or just the Fed? I would go with the latter.
Between the two scenarios, the 1st seems the most probable.
If you want evidence of this, just compare Nasdaq or Dow over Bitcoin and you will see Bitcoin followed most of the moderate to big moves of equities.
Based on the MACD for the 1-Month, if we cross into a bearish territory, we can see bitcoin fall below $25,000 or further. There might be the possibility of a head and shoulders forming as well.
Scenario 1:
- As we suspect a bear market due to interest rates, tapering, and shrinking balance sheet.. bitcoin will most likely follow equities in a steep sell off.
Scenario 2:
- In this scenario, we can see a selling with equities but if people somehow believe Bitcoin is a safe-haven than we can see money move from equities into crypto. This is not likely as most investors aren't very keen on the stability of bitcoin. March 2020 probably shocked most investors with Bitcoin losing 58%. Truth is, the rally in Bitcoin comes as the same time as the rally in equities, so it begs the question, was it investors piling into a "safe-haven" or just the Fed? I would go with the latter.
Between the two scenarios, the 1st seems the most probable.
Trade active:
It seems like Bitcoin is going the route of Scenario 1, which means we should easily see the price drop below $30,000
