Recently, the price of Bitcoin plunged to $ 3,600 on BitMEX and $ 3,800 on Bitfinex, setting the worst one-day drop in seven years. The sell-off coincided with a sharp correction in the US stock market.
Bitcoin, at least in theory, should be a safe-haven asset immune to the turbulence of traditional financial markets. However, in the past two weeks, as investors frantically sold high-risk assets, Bitcoin has begun to fall in sync with the stock market.
Do US stocks dive leading crypto market down?
Over the past week, the bitcoin price has responded to several key events, including President Trump's announcement of a 30-day travel ban between the United States and Europe, and the Federal Reserve's announcement to reduce the federal benchmark interest rate to 0.00% -0.25% Levels and more.
Compared with the trend of S & P 500, Bitcoin is almost the same as Bitcoin.
OKEx's advanced analysis is that William told Golden Finance, "Just as bitcoin price has no correlation with gold, there is no obvious correlation between bitcoin and U.S. stocks. The reason why U.S. stocks and bitcoin are falling is that the market is too lacking Liquidity, all funds are looking for safe, liquid assets. "
He explained by way of example that, in normal time, the water in the well is difficult to connect with the water in the lake; but the sky fell and the water levels of the lake and the well fell sharply. Even so, there was not much connection between the two sides. Just because of the influence of the big climate.
US stocks are about to open. How is Bitcoin trending?
In the early morning of March 18, local time, all three major US stock index futures fell, triggering trading restrictions.
The S & P 500 index futures contract for June 2020 fell to 2393.50 points, down 3.70%, hitting trading restrictions. The NASDAQ (7334.78, 430.19, 6.23%) index futures contract for June 2020 fell to 7064.25 points, hitting trading restrictions. The Dow Jones (21237.3809, 1048.86, 5.20%) index for the June 2020 contract was reported at 2039 points, which also hit trading restrictions.
Only 2 hours from the opening of the US stock market, will the US stocks reappear?
In this regard, industry analysts believe that the current US government is preparing to introduce the US $ 700 billion to the US $ 1 trillion stimulus plan and issue it directly to the public. All the US stocks rose due to this positive impact yesterday. But whether the liquidity crisis can be resolved is still a question mark. In addition, there are already confirmed cases in all states in the United States, the number of confirmed diagnoses in Europe is also rising sharply, a large number of factory shutdowns, which has a great impact on the stock market, so the probability of US stocks will fall in the next few months. Investors are not advised to take a dip at this time. It is now a crisis period and a dip is now a high-risk event. Regarding Bitcoin, it is recommended that you do not buy it, for the time being, at least it is not too late to buy it after the liquidity crisis has passed.
In terms of technical indicators, BTC remained within the rising triangle range formed after the recent big drop. The rebound started yesterday evening with the rise of U.S. stocks, but the strength was limited, and it was difficult to form a more powerful rebound in the short term. After wearing the Bollinger Middle Rail for 4 hours, the MACD bullish measuring column started to weaken above the 0 axes. The fast and slow lines have flattened, and the short-term upward momentum is insufficient. In the near future, it is still shock-organized. Parallel head up, volume matching, and breaking through the 4-hour potential double bottom neckline to suppress the high point of $ 5,950. Later, it is expected to test the previous low of 6400-6500. At present, the support below is the uptrend line. Today's limit is 4850. US dollar, the next 4-hour level is 4880 US dollars, short-term support to increase about 30 US dollars every 4 hours, the short-term operation can pay attention to these positions, the current overall maintenance of the triangle interval, waiting for direction choice.
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