S & P 500 is due to one of its biggest decline in months. The daily chart for the index shows the price share within a rise wedge since December 2018. This rising wedge is similar to the one we see in Bitcoin (BTC), because both the S & P 500 Index (SPX) and BTC / USD have been in an uptrend since the bundle last December. The S&P 500 Index (SPX) has been more bullish than Bitcoin (BTC) all the time, but it's now close to peak. In the best case scenario, we can see the index continue to rally against 3000. This next downturn in the S&P 500 will take stock markets by storm and Bitcoin (BTC), and other cryptographic curves will likely experience maximum pain as stocks continue to decline.
Bitcoin (BTC) has been on the roll in recent weeks. The price seemed determined to keep the ground and push for a retest of the previously destroyed market structure. It has already done so now, as the BTC / USD tested the $ 5,800 level and withdrew. What remains to be seen now is whether Bitcoin (BTC) can still rally against $ 6,000. Whether it goes together to $ 6,000 or slightly higher, is the fact that it is out of space to do a lot at this point. Buying Bitcoin (BTC) at this point is very similar to buying Bitcoin (BTC) around $ 1[ads1]7,000. Even the feeling is the same as everyone is all busy and optimistic about the next customs run. Some industry leaders like John MacAfee are even more optimistic for their own reasons, but this is rarely where the financial markets work. If Bitcoin (BTC) could go from here to $ 1 million in a year, everyone on Wall Street would be over it.
There is no denial that average Joe beat Wall Street to a new asset class, probably for the first time in history. But let's not assume that the average Joe calls the shots here. The price of Bitcoin (BTC) continues to be largely influenced by futures markets. Each CME and CBOE expiration date has been pursued or followed by a major move. Now that the excitement is rising in the Middle East and the United States striking Iran with sanctions, we can expect some major moves in the oil market that are likely to tackle a serious blow to the stock market. The S&P 500 is already characterized by a decline, and as Iran is blocking the Strait of Hormuz, it would be the catalyst for the downturn.
Meanwhile, Britain and the EU have both condemned US sanctions against Iran. It is becoming clearer that this whole difficulty between the United States and Iran will force the countries to take sides, and this can potentially escalate into a major conflict. However, the decline in the S&P 500 Index (SPX) and BTC / USD is expected, but if this conflict escalates to a full-scale war, we may see the depth of the S&P 500 much deeper than expected, in which case Bitcoin (BTC) may fall. much lower possibly against $ 1,200. There is a reason why smart money is waiting to get into the crypto rates yet. First of all, the price will have to test the resistance zone at $ 5,800- $ 6,000 over and over to break it eventually, so there's no rush. Second, the price remains heavily overbought on a larger time frame and is due to a strong withdrawal. Last but not least; The mood is too optimistic, which means that the market does not yet have much pain.