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Dow Jones, a stock market index that indicates the value of 30 large publicly-owned corporations based in the United States fell below 23,000 points for the first time since 2017 October and closed at 22859.60 points yesterday with the stock market United States that crashed massively before the end of the year.
Market analysts predict that the equity market will approach capitulation, even if the markets may not have entered an appropriate downtrend, but seeing the best indices like Dow Jones and Nasdaq falling rapidly, the bear market may not be too much far.
Dow Jones had increased by over 25% in 2017 from less than 19800 points to over 24700 points. According to analysts, a correction was certainly due after a major run last year
Bag collapse
The downward trend of the market in US markets has spread to all the main industrial sectors, with stocks of major technology companies such as Apple and Amazon, which have fallen by more than 30% on average and stocks of producers such as Ford, Target and Tiffany have decreased between 30% and 35%.
Not only in the United States, but also the markets of countries like China, South Korea and Australia are falling rapidly, leading to an increase in the unemployment rate in South Korea and to commercial banks struggling with 39; Australia. The SSE Composite fell more than 28% due to the trade wars between the United States and China. SSE Composite keeps track of all stocks listed on the Shanghai Stock Exchange, one of the two stock exchanges that operates independently in the People's Republic of China.
Will the Bitcoin market follow the stock market crash?
The Bitcoin market has been on a downward trend this year with the significant bearish decline since November of this year when the bitcoin fell from around $ 6500 to the annual minimum of $ 3250 in just a month. Bitcoin prices showed recovery symptoms from Monday this week when the price started to gradually rise above $ 4000 which was a great relief for cryptocurrency investors and hodlers but today the price of bitcoin has again begun to go below $ 4000 which was a new bitcoin support level. There is no adequate proof of the price of bitcoins and stock prices that are related, but we have certainly seen them grow and fall together in the past. Last year, when the price of the bitcoin reached a record high of $ 20,000, the prices of the major stocks like Dow Jones and Nasdaq also showed a noticeable increase. From the start of this year, bitcoin prices, as well as the prices of the main stocks, have fallen into disrepair. Although Bitcoin has seen a more drastic fall compared to stocks this year.
What are the prospects for Bitcoin?
24 hour graphic BTCUSD
While Bitcoin broke the critical support level around $ 4000 today, the new bitcoin support level is now around $ 3800 and $ 3850. If this support is interrupted due to sales pressure, then bitcoin could test the bitcoin again. annual minimum. Currently, Bitcoin trades around $ 3962 according to the Bittrex chart (at the time of writing), with signs of further losses. Previously, analysts predicted that the lowest point for bitcoin has not yet been reached, even if the price has risen to $ 3250. Analysts predict that the lowest range is around $ 2000 and $ 2500 before the bitcoin can actually start correcting the situation and start a bullish race. The current higher resistance is around $ 4100 and $ 4150.
Disclaimer: the following article is not a financial advice. Readers are invited to do extensive research and analysis before making investment decisions in the stock market and in the cryptocurrency market, which is quite volatile.
