This is the chart for the total crypto market cap.
Overlayed in orange is the SPX which is the top 500 US companies. Currently the value of the SPX is >170% of US GDP. According to Warren Buffet, anything over 135% is 'Significantly overvalued' and Buffet has been offloading much of his stocks and sitting in cash. (read more here: www.gurufocus.com/st...arket-valuations.php ). The Fundamentals of today's covid economy are not looking good and a large stock market crash seems to be inevitable.
Meanwhile, BTC is surging back to near all time highs and yet there is very little media hype around it and the rest of Crypto is remarkably stagnant by comparison.
As the SPX and Crypto seem to remain well correlated, there is no reason to assume that panic selling in the stock market would not lead to panic selling in Crypto.
The total crypto chart shows that the total market cap is approaching the .618 fib retracement which would be a valid target for the 2nd wave of a large ABC correction (note that the .786 will also be valid, however, less likely for a pivot). The weekly RSI is in overbought territory. Same goes for RSI on BTC and The stock market.
To me it seems as though the stars are aligning for a big drop which will catch everyone with their pants down as sentiment is overwhelmingly bullish around BTC. This is further demonstrated by the 'Extreme Greed' rating on the Cypto Fear and Greed index (Available here: alternative.me/crypt...ear-and-greed-index/).
Overlayed in orange is the SPX which is the top 500 US companies. Currently the value of the SPX is >170% of US GDP. According to Warren Buffet, anything over 135% is 'Significantly overvalued' and Buffet has been offloading much of his stocks and sitting in cash. (read more here: www.gurufocus.com/st...arket-valuations.php ). The Fundamentals of today's covid economy are not looking good and a large stock market crash seems to be inevitable.
Meanwhile, BTC is surging back to near all time highs and yet there is very little media hype around it and the rest of Crypto is remarkably stagnant by comparison.
As the SPX and Crypto seem to remain well correlated, there is no reason to assume that panic selling in the stock market would not lead to panic selling in Crypto.
The total crypto chart shows that the total market cap is approaching the .618 fib retracement which would be a valid target for the 2nd wave of a large ABC correction (note that the .786 will also be valid, however, less likely for a pivot). The weekly RSI is in overbought territory. Same goes for RSI on BTC and The stock market.
To me it seems as though the stars are aligning for a big drop which will catch everyone with their pants down as sentiment is overwhelmingly bullish around BTC. This is further demonstrated by the 'Extreme Greed' rating on the Cypto Fear and Greed index (Available here: alternative.me/crypt...ear-and-greed-index/).