As Bitcoin fails to rise above $19,000 and halt the further decline, the price is making low-timeframe attempts to recover. Over the past 24 hours, there has been constant selling pressure, which has pushed market sentiment back into the fear zone.
Last night, fear over the stock market’s potential decline drove Bitcoin on a downward path. However, there is still an opportunity for some positive news because the S&P 500, the most significant index of the American stock market, is still over $3,900, despite the fact that it is currently at $3,883. The largest company stock index in the world is currently at a turning point.
Fundamental Causes are the Trigger Point
Under the circumstances of an urgent deployment of the Fed’s “money printer,” the growth scenario is feasible. But once more, the successful completion of significant macro events will be required, whether it be the start of a military war between the United States and China in the Pacific or the appearance of a margin call of banks and systemically important corporations.
Fundamental causes are more likely to cause further decreases. By increasing its key rate and enforcing strict monetary policy generally, the Fed continues to fight inflation in a tardy manner. Every member in the system suffers when there are fewer dollars available.
As a result, the Fed’s balance sheet’s total assets decreased by $64 billion in August. In conclusion, barring a major event on the world financial market or the money printer turning on, the S&P 500 is set to plunge into the $2,700 range. This will result in a further decline for Bitcoin as well as the cryptocurrency market as a whole. Bitcoin has found support locally for around $18,500.
Given that the price of bitcoin has not changed significantly over the past few days, it now feels like the “calm before the storm.” In the immediate term, there can be interesting levels to watch.
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