S&P 500 Can Drop Another 25% to 50% to Make New Lows in 2020; Bitcoin Will Follow

Yet again, we have started the week on a green note, with bitcoin trading around $6,250, up 2.25% in the past 24 hours. These gains came after bitcoin fell to about $5,830 last night. Although the digital asset is holding $5,800s, the real level bitcoin needs to hold according to trader and investor Josh Rager is $5,100 to $5,300s. Also, we are not far from where we started last week.

At the beginning of last week, BTC/USD was just under $5,900 but in the following days, we climbed close to touching the $7,000 level on several occasions only to fail to do so. We have seen an increment of 8% in Bitcoin price this past week.

However, the price of bitcoin has recorded a negative performance of 29.24% in the past month, down from $8,650, although up over 62% from mid-March low at $3,850.

SPX Making New Loss Bad for Bitcoin

Yesterday, while S&P Futures and Bitcoin have been enjoying a mini pump, gold had a mini dump.

When it comes to S&P 500, during the financial crisis in 2008, after breaking below the 200 WMA (Weighted Moving Average), S&P 500 went back up over 9% only to fall another 49%, noted Rager.

Currently, the S&P 500 has rejected the 200 WMA after retesting it from a 20% rally over the past week. As such, it is expected S&P 500 will continue down to make new lows in 2020. And “if SPX sees new lows, the price will have a negative impact on crypto and on Bitcoin.”

Bond market veteran George Goncalves is also of the same opinion as he said if the market tracks 2008-2009, the bottom is at least a month away, either late April or early May with more pain ahead, a decline of 25%.

Alex Sanders, founder, and CEO of Nuggets News said,

“Downside likely for stocks & crypto. Classic rising wedge. Weekly resistance marked. 1M jobless claims in California?! Aussie economists predicting 10% unemployment by end of June. I'm predicting it by next week. Are new investors entering crypto? I'm not convinced.”

Some relief possible because of decoupling

On the weekend, stock-index futures fell, pointing to losses on Wall Street today, as the number of coronavirus cases and death continue to rise. Investors are also bracing for data regarding employment, confidence, and ISM activity figures that have a high correlation with GDP to underline the economic turmoil of the pandemic.

Bitcoin is not following the stock market tick for tick any longer but the crypto asset is still trading with risk.

As economist and trader Alex Kruger notes, Bitcoin may be the only asset outside of crypto, that is back to the levels where the Federal Reserve launched its “nuclear missile” of stimulus.

“It failed to follow stocks and break-up last week, and did a 360. Not very encouraging,” said Kruger.

If we take a look at Bitcoin individually, the daily movement suggests another move lower.

“BTC still is following stocks, even though not as perfectly. It will eventually decouple. Thinking higher with stocks early this week, then lower,” said Kruger.

Bitcoin (BTC) Live Price

1 BTC/USD =$9,376.2543 change ~ -0.56%

Coin Market Cap

$172.78 Billion

24 Hour Volume

$4.08 Billion

24 Hour VWAP

$9.42 K

24 Hour Change


Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

CFTC Chair Is Ready to List More Crypto Based Futures; Just Waiting on SEC's Clearance

The Chairman of Commodity Futures Trading Commission (CFTC), Heath Tarbert, has said that they are waiting for SEC clearance on more digital assets to...

Mercedes-Benz Parent, Daimler AG, Pilots PoC Supply Chain Data Sharing System with Ocean Protocol

Daimler AG, the Mercedes Benz carmaker, has partnered with the decentralized data-sharing platform - Ocean Protocol. The partnership would help the Daimler to store their...

Insufficient Clarity for Regulations And Taxes May Force US Investors Move On: Coinbase Tax VP

The Chief Tax Officer of Coinbase, Lawrence Zlatkin, believes that lack of clarity in the US' crypto taxes could alienate prospective investors. He shared...

Chinese Ride-Hailing Unicorn, Didi Chuxing, to Pilot Digital Yuan; First Mass Scale Use of DCEP

China's 'Uber,' Didi Chuxing, will test run the digital yuan according to an announcement on July 8. The Chinese ride-hailing unicorn has over 500...

Kyber Network Makes DeFi Debut Following a Protocol Upgrade and KyberDAO Mainnet Launch

Kyber Network has launched a protocol upgrade dubbed 'Katalyst' alongside Kyber DAO on the Ethereum mainnet as per a blog post yesterday by the...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today