Bitcoin - The stock market will drag BTCUSD lower

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Yesterday, the general stock market erased most of its “bear rally” gains. As a result, Bitcoin also erased some of its recent profits; however, not as much as the stock market. We expect Bitcoin to catch up with the stock market and manifest more selling pressure in the short term. Accordingly, we remain bearish and expect BTCUSD to form a new low below 25 000 USD.

Illustration 1.01
The Nasdaq 100 index to which Bitcoin is highly correlated broke its downward sloping channel, which is very bearish . Indeed, in our opinion, it forecasts an acceleration in the selling pressure in the incoming days. We expect the stock market to drag BTCUSD lower with it.

Technical analysis - daily time frame
RSI started to flatten; we expect it to turn bearish again. The same applies to the MACD . Stochastic remains bearish ; DM+ and DM- also remain bearish . The ADX shows extreme strength of the downtrend. Overall, the daily time frame is bearish .

Technical analysis - weekly time frame
RSI , MACD , and Stochastic are all bearish . The same applies to DM+ and DM-. The ADX increases, which suggests that the bearish trend of a higher degree is not losing momentum yet. Overall, the weekly time frame remains very bearish .

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