Bitcoin May Have An April Fool’s Surprise

Bitcoin seems to be doing everything we talked about last month. So, it would appear that BTC/USD indeed has an April Fool’s surprise for us. The 4H chart shows that we are very close to seeing a major move in the near future. Make no mistake, this move may be to the upside before the market declines again. However, the probability of a decline is much higher and if this bear flag leads to a similar decline as before, we could see a devastating move to the downside here. Please note that this decline is going to make the last one look like a picnic. It is much bigger and will thus be much more aggressive compared to the last one.

The sentiment so far is fairly divided with the bulls and bears on both sides having very strong opinions and they are both very confident in their views. Major financial markets including the stock market pain a bearish outlook up ahead. The S&P 500 (SPX) started the day well below the previous close. The daily candle has now turned green but it is unlikely to fill the gap left there yesterday. We are more likely to see a whole new move to the downside begin from here which is likely to bring a lot of markets down with it, including the cryptocurrency market. Bitcoin dominance (BTC.D) has recently declined after facing rejection at the 200-day moving average but its uptrend remains intact.

Ethereum (ETH) has attempted to break past $135 but failed repeatedly. In fact, the 4H chart for ETH/USD shows that it is now ready to decline much more aggressively. This is perhaps the worst time ever to be thinking about buying altcoins. Bitcoin dominance is in an uptrend and expected to begin a new trend while the entire market risks a major decline because of bleak outlook of larger financial markets. The commodities market continues to be in trouble as well.

WTI Crude Oil (USOIL) came close to a sharp decline below $20 but it still stalling that move. The same is true of Gold (XAU/USD) which is stalling the next big move to the downside. Meanwhile, EUR/USD has also been trading below the 200-day moving average. It all comes down to the next move in the stock market. The US has almost 200,000 confirmed Coronavirus cases now which could put more pressure on financial markets which means that we might be very close to seeing the next major decline in the cryptocurrency market.