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29th August 2023

Bitcoin Price Taps $28,000 On Grayscale Ruling, Soaring Stock Market

Bitcoin price has thus far made a 7% intraday move following news that a US court ruled in favor of Grayscale against the SEC. At the same time, the stock market is surging.

Could a perfect storm for the top cryptocurrency by market cap be building?

Back At $28,000: Grayscale Court Ruling Causes BTC To Bounce

In an asset class as volatile as crypto, prices — and moods — can change in a flash. That’s exactly what we’ve witnessed on a small scale today, moments after news broke that a US court is forcing the SEC to reconsider Grayscale’s Bitcoin ETF.

The news is significant because not only does it increase the chance Grayscale can move ahead with an ETF, but it also improves the likelihood of other ETFs like
BlackRock getting the green light.

Green is definitely the color of the day, with BTCUSD climbing back to $28,000 per coin on the heels of the news.

BTCUSD_2023-08-29_13-20-53

Bitcoin Price Could Benefit From A New Stock Market High

It isn’t just crypto getting a major boost today. US stock indexes are also soaring today. The S&P 500 is up over 1.2%, the tech-heavy Nasdaq over 1.88%, and the Dow Jones Industrial Average at 0.63%. The latest bounce in stocks puts traditional markets within striking distance of a new all-time high.

This is important because if Bitcoin price is already turning bullish in the wake of the Grayscale news, then a simultaneous stock market all-time high could cause crypto to go ballistic.

SPX_2023-08-29_13-29-07

Cryptocurrencies have a ton of catching up to do relative to the stock market. Furthermore, back in 2020, after the S&P 500 made a new all-time high, Bitcoin price followed in the weeks to come and set a record of its own. Is this what we can expect if the stock market sets new record highs, and a slew of ETFs are approved?

31st August 2022

WATCH: Waiting On The Bitcoin Monthly: Will Crypto Sink Or Soar? BTCUSD August 31, 2022

In this episode of NewsBTC’s all-new daily technical analysis videos, we are once again looking at the Bitcoin price monthly chart as well as the monthly chart on Ethereum, and major stock market indexes that have a high correlation with crypto.

Take a look at the video below.

VIDEO: Bitcoin Price Analysis (BTCUSD): August 31, 2022

There isn’t much to report on since yesterday’s video, so all eyes remain on the pivotal monthly close in Bitcoin and other risk assets. As you learned in yesterday’s video, the BTCUSD monthly is on a TD9 buy setup, and could risk a lower low which could perfect the series. In the next video, we take one last look at monthly timeframes ahead of tonight’s close.

One Last Look At The Bitcoin Monthly Support Line (And Other Cryptocurrencies)

Tonight’s August monthly close is critical across all risk assets – cryptocurrencies and stocks included. After staging an attempt at a recovery, Bitcoin, Ethereum, and major stock indices have been rejected back to support. Holding at this support level is the first step in a recovery, while losing it is a clearer sign of additional downside.

In the chart below, we can see that all that is separating BTCUSD from disastrous new lows is one horizontal line – former all-time high resistance turned support. If the level fails to hold firm as support, crypto could see and extended bear market.

The S&P 500 and Nasdaq losing their support levels has even more dangerous implications, possibly adding fuel to a recession in the United States.

Bitcoin hangs on by a thread at a key resistance turned support level | Source: BTCUSD on TradingView.com
Cyclical Tools Give Hope For A Bottom

There is no denying that things look negative for Bitcoin and other risk assets at this point in time, cyclical behavior dating back to the first major bear drawdown in BTCUSD could provide hope that the worst is over and a new bullish phase could begin.

In the video, we compare past cycles using the LMACD, Relative Strength Index, Stochastic, and the Average Directional Index. The fact that these tools could indicate a bottom is in might provide a clue to how the monthly candle will close tonight. With less than hours remaining in the monthly candle, it will be a nail-biter.

We also take a closer look at this cyclical behavior in Bitcoin | Source: BTCUSD on TradingView.com

Learn crypto technical analysis yourself with the NewsBTC Trading Course. Click here to access the free educational program.

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

13th December 2021

Could An Elon Musk Time Magazine Cover Predict The Crypto Cycle Peak?

The crypto market is in turmoil – a major change from the exuberance that kickstarted the year. One of the most important figures responsible for the euphoria in Q1, was none other than the self-proclaimed Dogefather, Elon Musk. His sudden love affair with Bitcoin and other crypto assets send valuations flying, and once he changed his tune, so did the trend.

Now, the Tesla and Space X frontman is also made it on the front cover of Time Magazine as the elusive person of the year. But it could it be an omen that the end of the crypto bull cycle is near – or potentially already here.

Time Magazine Picks Elon Musk As Person Of The Year

Bitcoin and cryptocurrencies have been compared to all kinds of bubbles, ranging from tulip mania to the dot com boom.

While it can be argued that like tech stocks from two decades because crypto assets make a comeback, they aren’t actually in a bubble at all, a more dramatic ‘pop’ could be on the way, according to the unfortunate timing of the Elon Musk Time Magazine cover.

Related Reading | Bitcoin “Speculative Chart” Suggests Crypto To Soon Blast off

Time Magazine selected Musk as the 2021 person of the year, which in the past has gone to names like Kamala Harris, Mark Zuckerberg, Barack Obama, and Jeff Bezos.

In fact, it’s the Amazon CEO that coincidentally could be a sign that the crypto cycle peak is near.

The Jeff Bezos cover was the dot com bubble peak, what about Elon? | Source: TOTAL on TradingView.com
Dot Com Bubble: A Prelude To The Crypto Cycle Peak

Back in December of 1999, Amazon founder Jeff Bezos was chosen as the Time Magazine person of the year. Three months later in March of the 2000, the dot com bubble popped.

Comparing the famous internet-focused stock market bubble with the total crypto market cap provides a similar trajectory, that may or may not have run out of steam. Even if like the dot com bubble the current level in December were to hold, a peak just three months away in March 2021 would lead to the worst correction that Bitcoin and the rest of the cryptocurrency market has ever seen.

Related Reading | Bitcoin Bottom Signal From Bear Market, Black Thursday Could Save The Bull Run

But that’s only if the peak isn’t already in. Currently, Bitcoin is flirting with continuation to the downside at about $46,000 per coin. The chart above also demonstrates roughly how much more ground could be covered if the level does indeed hold.

Bull markets tend to end in euphoria, and with the market in full blown fear, the sentiment doesn’t quite match. The so-called “magazine cover” indicator has a delayed effect, because the content goes into production months ahead of the publishing date. Could this mean that the peak in April while Musk was making headlines, truly was the euphoric peak? Or has the market not quite seen anything yet in terms of what euphoria could look like?

Thoughts, @TommyThornton? Magazine cover indicator would suggest top is in, but a repeat of a December cover and March top could make sense. pic.twitter.com/YMPfYLeGDk

— Tony "The Bull" Spilotro (@tonyspilotroBTC) December 13, 2021

Featured image from iStockPhoto, Charts from TradingView.com