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The S & P 500 is due to one of its biggest declines in a month. The daily chart of the index shows the evolution of prices in a range of increases since December 2018. This increase is similar to that of Bitcoin (BTC), as the S & P 500 (SPX) and BTC indices / USD have been in an upward trend since their bottom last December. The S & P 500 (SPX) index has been more optimistic than Bitcoin (BTC) since the beginning, but it is now about to end. At best, the bullish scenario could allow us to see the index continue to rise to around 3000. This next drop in the S & P 500 will storm the stock markets and Bitcoin (BTC) as well as other cryptocurrencies may suffer as much as stocks continue to fall.
Bitcoin (BTC) has been launched in recent weeks. The price seemed determined to maintain his ground and push for a new test of the previously broken market structure. He has already done so now, while BTC / USD was testing the $ 5,800 level and coming back from here. However, it remains to be seen now if Bitcoin (BTC) can still earn $ 6,000. Whether it's $ 6,000 or slightly more, the fact remains that it is not possible for him to do much for the moment. Buying Bitcoin (BTC) at this point is very similar to buying Bitcoin (BTC) around $ 17,000. Even the feeling is the same, because everyone is excited and optimistic about the next bull race. Some industry leaders, like John MacAfee, are even more optimistic for their own reasons, but that's rarely how the financial markets work. If Bitcoin (BTC) could go from here to $ 1 million in a year, everyone on Wall Street would benefit.
It is undeniable that the average Joe has beaten Wall Street to a new class of assets probably for the first time in its history. However, let's not assume that the average Joes run here. The price of bitcoin (BTC) remains largely influenced by futures markets. Each CME and CBOE expiration date was preceded or followed by a large move. Now, when tensions rise in the Middle East and the United States is hitting Iran with sanctions, we can expect significant movements in the oil market that could hit the stock market harshly. . The S & P 500 is already ready for a decline and the blockage by Iran of the Strait of Ormuz would be the catalyst to launch the downtrend.
At the same time, Britain and the EU have both condemned US sanctions against Iran. It is becoming increasingly clear that this whole conflict between the United States and Iran will force countries to take sides and that this could potentially degenerate into a far-reaching conflict. The decline in the S & P 500 (SPX) and the BTC / USD exchange rate is nevertheless expected, but if the conflict degenerates into a real armed conflict, the S & P 500 could dive much deeper than expected, in which case the Bitcoin (BTC) could fall much lower perhaps to $ 1,200. There is a reason why smart money is waiting to enter cryptocurrencies for the moment. First, the price will have to test the resistance zone at $ 5,800 – $ 6,000 again and again to finally break it in order to avoid any hurry. Secondly, the price remains heavily overbought on longer delays and must be sharply reduced. Last but not least; the feeling is too optimistic, which means that the market must still inflict the maximum suffering.
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