DJI + Indicators Vs NDQ Vs Bitcoin

TVC:DJI   Dow Jones Industrial Average Index
Hi Investors & Traders

Although this is a chart of the Dow, it will mainly focus on the interactions of Bitcoin with the Dow and the Nasdaq.
I'm taking a slightly different look at the market here with this chart. This is the monthly chart of the Dow Jones, Nasdaq and Bitcoin, but the 4 indicators on the bottom are corresponding of the Dow. The four indicators as follows...


In this chart we can really see the parabolic growth of Bitcoin especially against the Nasdac and the almighty Dow Jones. Way back in 2017 the markets were in a rally non bigger than Bitcoin, and as we can see it Pierced through the Nasdaq and was pretty much met as resistance by Dow with a fairly strong rejection from it. It then found some support off the Nasdaq but it ultimately fell through and bottomed out. The next move to re pierce the Nasdaq and it co mingled with it for about one and half years before it inevitable broke out above it and met with the Dow Jones and went on to pierce it as well. Bitcoin then corrected right back to the Dow as support for months into it's second attempt to another break out f new highs @ 69k. Not long after Bitcoin once again falls to the Dow as support once more, makes a small move and then plunges with the rest of the markets and goes down bellow the Dow as similarly did with the Nasdac back in 2018. Comparing to the Nasdaq drop of 2018 Bitcoin fell 51% under. This year in 2022 it has fallen about 56% under the Dow. At 5% more is this enough to call it a bottom? I guess we will see in due time.

The good news
3 out of the 4 indicators are showing signs of recovery for the Dow with only the MacD not crossing yet. As we can clearly see in the recent history of a decade these indices tend to move together with the Dow leading the way. The thing is market sentiment can switch on a dime. Waiting for the MacD cross is still not a guarantee of new highs but it lowers the downward risk just bit more.

Bitcoin and it's interaction with the Dow going forward will be very important in my opinion s I think it might have a tough time passing and the Dow. I will most likely mingle and battle with the Dow for a few years before it can eventually break above and make it support. Then and only then should the next parabolic move from Bitcoin will follow.

I also added the SPX just for good measure. We can see that Bitcoin did have a small interaction with it for 3 months before it ultimately broke above and then dropped within 26% at the bottom in 2018. Comparing the Bitcoin drop of the SPX to the Nasdaq is 28% this year, only 2% off, fairly close so far.... But is it over?

I don't normally include so many indicators but to get a good indication without making many charts I though it would be necessary to gauge the market from Dow with multiple angles. I want to add that bitcoin could interact with these indices for a long time or permanently for all we know at this point.

Thanks for viewing
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