Stop the panic, BTC is becoming less susceptible to stocks!
I have seen so much news and discussion for the past month that the falling market will have dire consequences for crypto. And although that is possible, I just wanted to call out that ever since the market declines in late December of 2021, Bitcoin has been showing divergence from the typical indexes.
The following charts are of two common examples of how over the past year, the NASDAQ and S&P 500 indexes have been forming a wedge pattern against the price of bitcoin. However, as indexes began to decline in late 2021, and as prices of stocks continue to fall due to Fed pressure and global conditions, the price of BTC has been showing divergence (white lines on RSI and MACD) and bouncing off of a wedge pattern (bullish pennant?) whereby there is still a good possibility for a continuation upward out of the wedge.
That being said, there is always the possibility of a break downward out of the bottom of the wedge, particularly if any catastrophic drops were to occur, but I just want to point out that the doom and gloom of market indexes does not have to spell doom and gloom for crypto as well.
And of course, this is solely my opinion and is not meant as financial advice, but please like or comment if you agree or have any further thoughts!
The following charts are of two common examples of how over the past year, the NASDAQ and S&P 500 indexes have been forming a wedge pattern against the price of bitcoin. However, as indexes began to decline in late 2021, and as prices of stocks continue to fall due to Fed pressure and global conditions, the price of BTC has been showing divergence (white lines on RSI and MACD) and bouncing off of a wedge pattern (bullish pennant?) whereby there is still a good possibility for a continuation upward out of the wedge.
That being said, there is always the possibility of a break downward out of the bottom of the wedge, particularly if any catastrophic drops were to occur, but I just want to point out that the doom and gloom of market indexes does not have to spell doom and gloom for crypto as well.
And of course, this is solely my opinion and is not meant as financial advice, but please like or comment if you agree or have any further thoughts!
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