![]() If Bitcoin can breakout from downtrend resistance and break free from the dangerous stock market correlation, any second leg down in stocks could send BTC skyrocketing instead. RELATED READING | GOLD CHART SHOWS WHY BITCOIN IS THE FASTEST HORSE IN RACE AGAINST INFLATIONĪlthough the asset has been following the stock market, it shares more attributes with gold, which is experiencing a strong uptrend currently. However, Bitcoin is at an impasse and could be ready to embark on a new bull market. Losing that level could cause extreme panic in the crypto market. Lower than the Black Thursday bottom at $3,800 would make Bitcoin’s 2018 base a logical target.īitcoin BTCUSD 2020 Weekly Line Chart | Source: TradingView If the asset experienced a second-leg down lower than Black Thursday’s low of $3,800, it could lead to a greater bear market lower low. The continued correlation between the stock market and Bitcoin could be disastrous for the cryptocurrency struggling to break out into a bull market. S&P 500 2020 Monthly Line Chart | Source: TradingView If this happens, it could take the S&P 500 down to around the 2,000 level. Shilling warns of another potential 40% collapse in the stock market. For instance, Scott Minerd, the chief investment officer of the multi-billion dollar investment firm Guggenheim Partners, told CNBC on Friday that he expects Bitcoin to fall to 15,000. The SEC is in information gathering mode. This gave investors hope that the carnage was over, but it had truly only just begun. Bitcoin ETF Not Imminent, Says Market Expert Dave Nadig Dave Nadig told CNBC there was no reason for any immediate hope of approval and that the regulator would likely exercise its authority to kick this can down the road and avoid making a decision as long as possible. ![]() Looking back at the second-leg down Shilling warns about, a similar V-shaped recovery formed on the S&P 500. How Could Bitcoin Respond To A Repeat Of The 1929 S&P 500 Collapse? Which could make another drop all the more devastating if it takes the world by surprise as Black Thursday did last March. 6:11:00 AM BITCOIN’s (BTC) price dipped below 6,500 (5,026) yesterday as it fell below a key price point, which could be a sign of an imminent slide in its value, a crypto expert has predicted. ![]() Some analysts are expecting a new bull market and new highs. Bitcoin price surge ‘IMMINENT’ as key platform could send value ‘SOARING’ - expert claims. ![]() If that’s the case, the market isn’t currently reflecting in sentiment. Shilling says that the pandemic is the “most disruptive financial and social event since World War II” and will have similar, long-lasting effects. S&P 500 1929 Monthly Line Chart | Source: TradingView In 1929, an initial, V-shaped recovery was short-lived and led to a second leg down eventually. “Stocks are very much like that rebound in 1929 where there is absolute conviction that the virus will be under control and that massive monetary and fiscal stimuli will reinvigorate the economy,” he fears. ![]()
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