The price decline of the whole crypto and the stock market is making headlines all over the world, and many people sell their positions in a panic. However, this might be a great opportunity as the bearish sentiment is too strong, and some form of pullback is very welcome at the moment. Before making any trading or investment decisions, check out these charts of Bitcoin, Nasdaq, and Oil WTI. Tables might just about to turn around when you least expect it.
Bitcoin with great buy opportunity?
Bitcoin went into a strong downfall in the end of April, which took around 8 weeks. After that, people started to be optimistic and thought that the sell-off is at the end. However, another strong fall by more than 33% came shortly after. This is the first time in history that Bitcoin went below its previous all-time high (ATH) level from the last bullish cycle. While many investors panic, some see it as another generational wealth opportunity.
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Bitcoin is down by more than 70% from its all-time high in November 2021, which might just be a sign to start stacking. RSI shows the most oversold market in the history of cryptocurrencies, the fear & greed index indicates the lowest levels, and it’s been there for several months. Finally, many scam projects died, which helped clear out the market of scams and rug pulls.
Weekly Bitcoin chart, Source: Author’s analysis, tradingview.com
A slow uptrend is expected after such a bloody painful bear market, and it could start soon. After every market crash, there is an accumulation phase where investors slowly start to buy, and all the signals suggest it is happening right now. $18,000 might have been a bottom, so if you’re investing without leverage, this is one of the best times to get bullish.
Moreover, a well-known rainbow chart shows a “fire sale” signal that indicates Bitcoin is extremely oversold and sort of a “certain buy opportunity signal.” People like to shop for products with discounts. However, it doesn’t apply so much in the markets. Most investors get fearful and miss the opportunity. Don’t be like most investors.
Bitcoin Rainbow chart, Source:blockchaincenter.net
Nasdaq falling to 10 000?
While Bitcoin has strongly correlated with the stock market in the last couple of months, historically, this correlation breaks. That is why the stock market may continue downwards, and Bitcoin can go up slowly again. Nasdaq is reaching a solid support zone, where it might bounce up in the short-term, but the downtrend is still in the play. The raging inflation and rising interest rates surely hit the stocks hard, so the sell-off won’t stop so quickly.
In the upcoming weeks or months, one might even expect Nasdaq to hit the ATH level from 2020 when all markets dumped because of global COVID. It will be a good buying opportunity if the situation gets better and inflation stops rising. The index would be down by around 40%, which rarely happens. Yet, this downtrend can to continue and near a climax of a bottom in the near future. In the meantime, most traders probably look more at short positions than long positions.
Daily Nasdaq chart, Source: tradingview.com
While crypto and stock markets fell hard, oil went through one of the strongest uptrends in history, rising from literally $0 to $130 in 2 years. The peak was formed at the beginning of March. After that, however, the market went up and almost retested this resistance again. In the last few weeks, when Oil WTI was rising, it bounced from the trendline several times. When the trendline is tested too many times, it breaks sooner or later. That is the nature of the market.
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The oil seems to be aggressively going for the trendline, so another sell-off might be expected soon. If the oil bounces back up, it will probably retest the $130 level from March. But if not, another price target is around $90. The oil market has been overheated for some time, so some slight but apparent price decline would make a lot of sense right now.
Daily Oil WTI chart, Source: Author’s analysis, tradingview.com
These market outlooks should give you another perspective that could be useful in your trading or investing. They do not serve as financial advice, but rather a down-to-earth opinion on a current market situation. Good luck in these tough times!