Crypto Markets Struggle in Response to Stock Market Movements
Right now, the crypto markets are tired. When the stock market is rising, crypto just holds on. When the stock market dips, crypto responds in kind.
As a crypto holder, I keep SPX on my radar to get a view of how the stock market is doing. So, am I seeing anything here to make me worry? Absolutely not.
After the news initially broke about inflation not being transitory and how tapering will take effect, most people feared the end of the market bull run. But I know that the American government only appears to be stupid, when in actuality they know what they are doing. Until the current 'crisis' is dealt with, they can not afford an economic crash. I believe one is coming, but not yet. I think the goal here was to shift the stock market from an uptrend to a range, or at the very least a less vertical uptrend (seriously zoom out, it has been an epic pump since March 2020, not sustainable).
We can see this shift happening here as we have fallen into a shallower trend and showing signs of ranging. Higher lows and range highs forming, with a nice bullish retest of the daily 50EMA. As an amateur, I forecast sideways/slight uptrend action in the stock market, and once crypto gets used to this new narrative, they will have at least one more respectable run.
What do you think?
As a crypto holder, I keep SPX on my radar to get a view of how the stock market is doing. So, am I seeing anything here to make me worry? Absolutely not.
After the news initially broke about inflation not being transitory and how tapering will take effect, most people feared the end of the market bull run. But I know that the American government only appears to be stupid, when in actuality they know what they are doing. Until the current 'crisis' is dealt with, they can not afford an economic crash. I believe one is coming, but not yet. I think the goal here was to shift the stock market from an uptrend to a range, or at the very least a less vertical uptrend (seriously zoom out, it has been an epic pump since March 2020, not sustainable).
We can see this shift happening here as we have fallen into a shallower trend and showing signs of ranging. Higher lows and range highs forming, with a nice bullish retest of the daily 50EMA. As an amateur, I forecast sideways/slight uptrend action in the stock market, and once crypto gets used to this new narrative, they will have at least one more respectable run.
What do you think?
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