Bitcoin (BTC) Ready To Decline Below $9k, Price Quite Vulnerable 

Bitcoin (BTC) Ready To Decline Below $9k, Price Quite Vulnerable 

Bitcoin (BTC) has just rallied past $9,000 after a major stock market rally that had a lot to do with renewed confidence after Joe Biden’s victory on Super Tuesday. Wall Street was optimistic as Joe Biden’s new status as a potential front runner means no threat to the status quo and so business could go on as usual. The price of Bitcoin (BTC) rallied with the rest of the market and ended up testing a key resistance at $9,156. So far it has failed to break past it and the most probable scenario is that it won’t succeed in doing that at this point. We are more likely to see BTC/USD decline lower within the broadening wedge in the near future. 

The next move in the stock market would be crucial to this decision as BTC/USD has demonstrated in the past few months that it cannot make such decisions on its own anymore. The stakes are too high and the big players that control this market have become too risk averse. If they don’t play their cards right, they can run into trouble as there are people in traditional markets waiting to take advantage of any weaknesses on the side of the market makers and whales for big money. There are plenty of investment vehicles available now like Futures and Options and many types of fiat pairs which offer a lot of opportunities that the big players on Wall Street keep a keen eye on. If the big guys in this market make a wrong move, professionals from Wall Street are eager most of the time to take advantage of it. 

The S&P 500 (SPX) has run into the 1.272 fib level after an aggressive rally. There is now a strong probability that we might see a decline follow in the near future. The most probable scenario would be the beginning of a major downtrend below the 200-day moving average. It is pertinent to note that with the whole Coronavirus situation worsening and political instability, markets are not short of catalysts to decline further. This time, the situation could be a lot more alarming if we see the index decline below the 200-day moving average. 

There are still important developments in the Democratic primaries up ahead that could induce major swings in the market. We would want to wait and see how it affects the stock market long term because this is clearly about pro-establishment and anti-establishment now. A Biden or Trump win would be perceived as better for Wall Street but if Bernie gets the lead again, Wall Street would be petrified and we would likely see that reflect in the stock market. 

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