As Bitcoin fails to rise above $19,000 and halt the further decline, the price is making low-timeframe attempts to recover. Over the past 24 hours, there has been constant selling pressure, which has pushed market sentiment back into the fear zone.
Last night, fears of a possible stock market crash pushed Bitcoin to the downside. However, there is still an opportunity for some positive news as the S&P 500, the most important index of the US stock market, is still trading above $3,900 despite the fact that it is currently trading at $3,883. The world’s largest company stock index is currently at a turning point.
Fundamental Causes are the Trigger Point
Under the circumstances of an urgent deployment of the Fed’s “money printer,” the growth scenario is feasible. But once more, the successful completion of significant macro events will be required, whether it be the start of a military war between the United States and China in the Pacific or the appearance of a margin call of banks and systemically important corporations.
Fundamental reasons are likely to be further reduced. By raising its key rate and implementing a generally tighter monetary policy, the Fed continues to fight inflation at a slow pace. Every member of the system suffers when fewer dollars are available.
As a result, the Fed’s balance sheet’s total assets decreased by $64 billion in August. In conclusion, barring a major event on the world financial market or the money printer turning on, the S&P 500 is set to plunge into the $2,700 range. This will result in a further decline for Bitcoin as well as the cryptocurrency market as a whole. Bitcoin has found support locally for around $18,500.
Given that the price of bitcoin hasn’t changed much over the past few days, it now seems like the “calm before the storm”. In the immediate term, there could be interesting levels to watch.
