Market Watch Apr 11 2020

With the current world situation, it’s obvious that there is clear uncertainty in the markets along with the general health and wellbeing of all people the world over.

Within the last weeks, we have seen a world in crisis, markets crashing, a quarter of the world shutting down, plans to implement UBI even if just Temporarily. After the crash, we have also seen a relief rally. However, with this bounce there was a lingering sentiment of over exuberance in many chats. People seemed to think the pain is over, and in my experience this is a sign that there is a lot more pain to come.

As far as crypto goes. The bitcoin price has been following traditional markets. This is expected seeing the current situation. A lot of the markets have coupled as humans en masse tend to react similarly. Trading bots and algorithms reacting to this will trigger buys and sells along with. Human nature is human nature and as of now, most people are at the base level, worried about wether they will be able to get food, afford shelter, keep their jobs and not get the covid-19 virus along with buying toilet paper of all things. With this in mind, as everyone stays home and constantly watches the news, they are constantly fed the fear to fuel the former worries previously mentioned. As such, not many people are even thinking of any markets.

This bounce was the result of quantitative easing for the most part. People who bought the dip just rode the coat tails of the helicopter money. The masses are not buying this. It is also likely that the smart money may exit the top of the bounce considering the current state of the world if they anticipate more down side. Some are speculating we may plunge into depression territory which also has many implications that the masses seem to not thinking about.

The people left over that are in the markets and who understand economics may be thinking of the ramifications of the 2 trillion dollars that the US Fed has printed in the unlimited QE program previously mentioned which is a different animal in and of it self, and mixed with a possible depression, add in the resulting inflation and common sense dictates, this is a potential disaster waiting to happen, and it’s showing up in many charts.

It is currently Easter weekend and its looking like this may be the calm before the storm as there are many charts showing rising wedges.

The S&P 500

The Nasdaq

The NYSE

Russell 3000

Apple

Alphabet

Gold

Silver

Oil is siting in a flag.

And lastly the Bitcoin chart tells us more of a story. The purple Fibonacci ring lines up around Tuesday when the traditional markets open up as Monday is a holiday. The market may react with this ring either way but as so many markets are in bearish rising wedges, bear flags and with the current state of the world markets, this is looking like we may see a lot more down side action.

With all this being said, this coming week is looking like we could see an end to the dead cat bounce, or possibly further bad news to create a catalyst to cause the markets to fall further in a continuation.

Bitcoin will fluctuate until then. However, the charts are generally not showing any signs of strength. Be ready for movements this week.

Stay safe both in health and in the markets.

Categorised in: Cryptocurrency Markets, Technical Analysis

This post was written by BlockAdvisor