Bears Are Pressing: The Crash of the Market and BTC

Bears are pressing: the crash of the market and BTC

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The forecast of those analysts who predicted the crash came true. The market and bitcoin are dropping fast. Somebody managed to use forecasts and sell BTC in time.

Bitcoin dropped simultaneously with the S&P 500. But if for the index it can be a correction, then for the first cryptocurrency it can be a trend reversal. Traders also noted a correlation between BTC and the NASDAQ 100, which dropped 4% over the day, while Bitcoin fell 9%.

Many analysts associate the market crash and the correlation of cryptocurrencies with fiat markets – with the second wave of the pandemic. A similar situation was observed in March 2020, during the first wave. However, after that when Bitcoin pulled out of the dive, it became correlated with gold and showed an inverse correlation with stock indices.

Who took advantage of the BTC crash? One of those lucky guys is market veteran Peter Brandt. A well-known trader managed to sell all bitcoins and buy dollars. He tweeted:

Brandt did not invest in gold because he understood exactly the market situation. The fact is that despite the crisis, large tech companies, including Apple, Facebook, and Microsoft, have updated all-time highs. Now investors are taking profits. This explains the crash of the NASDAQ 100. It was not difficult for an experienced trader to predict such a market movement. The demand for dollars in this situation caused USD to rise and pulled BTC down. This decline is purely speculative because there are no fundamental factors for the BTC crash. Experts are convinced that the May BTC halving is saving the cryptocurrency market from a deeper decline. The volatility of about 10% is common in the crypto market.

Cryptocurrency optimists believe that nothing special has happened, investments in BTC and other leading cryptocurrencies will still be justified in the long term. However, it is not so clear in the short term. The fall in BTC may continue. Technical analysis indicates the next support level at $9100. Speculators may decide that it is worth waiting for the fall to this price in order to buy BTC. The situation with ETH is similar, Ethereum crashed after Bitcoin by more than 10%, to $390. Now its support level could be $350. A rebound and continuation of the bullish trend may occur at these low levels. Other notable coins affected were Binance Coin and Chainlink. They fell by 17%. XRP also dropped by 8% to $0.249.