Could a worse scenario happen in global markets? Here are all the expectations

Crypto News – Before looking at Bitcoin and crypto charts, we need to talk about what happened in the US exchange market and today's financial news because we had a historically bad day. We saw the worst day in terms of a one-point drop for the NASDAQ 100 index; it wasn't a percentage drop, but it experienced the worst single-day point loss so far.

The NASDAQ 100 index is one of the largest indices in the world, and it lost 1060 points in just one trading day. The index was only 1.5% away from triggering a circuit breaker. The S&P 500 index also experienced some of the worst days in recent history, especially in the last two days. When we look at who is selling most of these stocks right now, we see that it is the hedge funds on Wall Street. While the large hedge funds on Wall Street are selling stocks as quickly as possible, they are currently trying to exit the market.

How Did Investors React to the Historical Drop?

Retail investors are currently buying the dip in the market, which suggests that the decline could worsen. Because obviously, the hedge funds there are dealing with large sums of money, accessing the best information in the market, and anticipating further declines. In other words, they are once again trying to exit the market as quickly as possible since the global financial crisis. Retail investors are currently trying to fundamentally buy stocks during this crash.

When we measure the NASDAQ 100 index and the S&P 500 index from high to low, we see a decline of close to 20 percent and we can say that we are in bare market conditions. We have to wait for the stock market and therefore the crypto market. The signals we get from the charts tell us that the empty market will continue for a while. The last time we saw such signals, we basically saw about a year of empty markets. It was confirmed around January 2022, and we ended the empty market towards the end of 2022. We state in almost every content that the stock market and the crypto market are in a close relationship.

Therefore, it is worth noting that when we historically had a bad day in the US stock market, it could potentially turn into a price movement with a downward trend for the cryptocurrency market. However, the reason for the decline we experienced in 2022 is different from the current scenario. The increase in inflation and then the Federal Reserve having to raise interest rates indicated a lot of declines for the markets. The Federal Reserve had no other choice but to raise interest rates during this time.

Basically, one of the current reasons for this downtrend is the tariffs coming from the United States and the ensuing trade war. This situation could potentially reverse much faster than inflation in interest rates. Clearly, reversing inflation data is a much harder event than lowering tariffs. However, it should not be forgotten that this situation could occur with the reversal of the US tariffs.

Are Bitcoin Indicators Confirming Lower Levels?

When we look at Bitcoin charts, especially the appearance in the MACD indicator still points more to bears than bulls. However, compared to a few weeks ago, we do not see much bearish momentum. In the weekly indicators, we are largely playing for a bearish divergence. As we have been saying for a long time, we do not expect much upward movement in the short term and most likely we will see a larger pullback or volatile price movements. The Bitcoin price can of course bounce from support points, but we should not expect much movement due to the negative news flow coming from the US markets.

The Bitcoin price is trading slightly above the support level of 82 thousand dollars at the time of writing. Now, we will discuss potential support points, but there is still a strong support line at 88 thousand dollars in an upward direction. The support points we need to pay attention to for Bitcoin are located at 81,500 dollars, 80,000 dollars, and 78,500 dollars, respectively. There is also a small support line around 83,500 dollars. However, we can ignore this line because the leading asset seems to be losing this level. Even if the Bitcoin price is in a potential dumping phase, it is showing a better stance compared to the US exchange.

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The information in the article content is for informational purposes only. It does not constitute any investment advice. The author and kriptoparahaber.com are not responsible for any profit or loss resulting from your investments. Ultimately, investing is based on many factors such as information, savings, experience, research, and personal decisions.

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