This weekend was a rollercoaster ride for the cryptocurrency market. This follows bitcoin’s listing above $40,000 last week. However, the crypto asset has held above $36,000 as its support level. Recent stock market chart actions suggest that the end to this bear trend is not far. This prediction may prove to be true, and the stock market could see more value added to its market capital soon.
Crash Like a Dot Com
Peter Brandt recently published a disturbing chart which shows strange similarities to the 2000s dot-com crash. Brandt, a well-known chartist within the sector, is famous for his prediction of the 2018 crypto market crash. Because he has a great understanding of the charts, his predictions are very popular with crypto investors.
TA: Bitcoin Consolidates Below $39k: What Could Trigger Another Decline| TA: Bitcoin Consolidates Below $39k: What Could Trigger Another Decline
Brandt’s chart of the Nasdaq 100 which looks similar to the dot-com chart before the crash is a worrying sign. If the situation is similar to 2001’s, investors may notice a rapid decline in stock value.
BTC gains more than $38,000| Source: BTCUSD on TradingView.com
Important to remember is that Nasdaq trades at a much higher point now than it did during the 2000s. But, recent market movements appear to mirror those seen before the crash. Brandt describes this as deja vu, with arrows that point out similar patterns in the market from both times.
“It’s Deja Vu all again!”
–Yogi Berra, late 20th Century American philosopher pic.twitter.com/aFch8sx1PA— Peter Brandt (@PeterLBrandt) April 21, 2022
What Does This Mean for Crypto?
The correlation between the stock market and the cryptocurrency market has increased dramatically over the last few months as it has grown. The movement of crypto markets has been closely linked to the stock market’s. This means that the crypto market will rise if the stock market is up and vice versa.
The crypto market may be affected by a stock market crash of the dot com proportions. The crypto market could follow a stock market loss of significant value in a relatively short time period, leading to large-scale crashes for both small and large cryptocurrencies.
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This does not fall far from Brandt’s prediction for the leading digital asset in the crypto market. Bitcoin, which is still facing opposition at $40,000 may fall to $28,000 if it continues to be challenged. accordingBrandt. He added that this would complete a bear channel.
Indices for the cryptocurrency market, no matter what stage it is at, aren’t favorable. The market is down nearly 50% since its peak, and investors are shifting into the negative.
CNBC featured image, Chart from TradingView.com