The recent sell off in the stock market has created immense uncertainty in the market. But where does crypto stand amongst all of this? Surprisingly, it seems like crypto hasn't moved much in the last couple days despite pretty much every other market getting hammered.
So what does this mean? Either this is the calm before the storm, and the crypto market will see a sharp correction in the coming days, or this is a signal that money may start moving into BTC. The tariff-induced sell off actually could lead to a catalyst event for BTC and many other cryptos to return to its bull cycle and there are many indicators that point towards this.
Firstly, it's important to remain cautious during this period of time as the market decides whether or not it can support another leg up for the cryptocurrency market. Both sides of the coin are possible and BTC could test it's lower support region ~65-70k if the bulls fail to hold support in this region. On the other hand, if BTC continues to outperform, investors may start pumping money back into BTC as we test the upper resistance near 105-110k.
Another important point to make is the USD losing value. Looking at the DXY, we are nearing a critical support level of 100 which could be a make or break point. If the dollar continues to fall, it could feed into a bullish BTC scenario. Cyclically, BTC has yet to reach its top so we will see how the market reacts in the coming weeks.
So what does this mean? Either this is the calm before the storm, and the crypto market will see a sharp correction in the coming days, or this is a signal that money may start moving into BTC. The tariff-induced sell off actually could lead to a catalyst event for BTC and many other cryptos to return to its bull cycle and there are many indicators that point towards this.
Firstly, it's important to remain cautious during this period of time as the market decides whether or not it can support another leg up for the cryptocurrency market. Both sides of the coin are possible and BTC could test it's lower support region ~65-70k if the bulls fail to hold support in this region. On the other hand, if BTC continues to outperform, investors may start pumping money back into BTC as we test the upper resistance near 105-110k.
Another important point to make is the USD losing value. Looking at the DXY, we are nearing a critical support level of 100 which could be a make or break point. If the dollar continues to fall, it could feed into a bullish BTC scenario. Cyclically, BTC has yet to reach its top so we will see how the market reacts in the coming weeks.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.