Bitcoin Could See a Strong Correction<\/strong><\/h2>\nAnalyst Cole Garner is long-term bullish on Bitcoin, but he sees<\/a> a number of reasons why BTC’s next “big” move is likely down. They are as follows:<\/p>\n\n- Glassnode reports that BTC miners have withdrawn the largest number of coins from their wallets to exchanges in over a year.<\/li>\n
- Institutions are still bearish on cryptocurrencies, at least according to CME data.<\/li>\n
- The Bitfinex “buy wall” around $8,500-9,000 is being eroded. That means there is a lower likelihood of BTC bouncing when it reaches that level.<\/li>\n
- Bitcoin’s order book delta has been “skewed massively to the sell side for almost six weeks.”<\/li>\n<\/ul>\n
Garner isn’t the only analyst currently expecting a correction.<\/p>\n
As reported by NewsBTC previously<\/a>, a trader noted that the entire crypto market is primed to see a 25% drop. Bitcoin dropping 25% would imply a price of ~$7,000 and Ethereum doing the same would result in a move to approximately $175.<\/p>\nHe shared the chart below to illustrate this sentiment. It shows that the crypto market failed to break out of an RSI downtrend and is struggling to maintain support levels.<\/p>\n
![\"Image\"](\"https:\/\/pbs.twimg.com\/media\/EbUJ-jQU4AA_-jr?format=png&name=small\")
<\/p>\n
Bitcoin price chart shared by pseudonymous crypto trader Dave the Wave (@Davthewave on Twitter). Charts from TradingView.com<\/a><\/pre>\nThe S&P 500 Will Decide BTC’s Fate<\/strong><\/h2>\nWhile there are these signs, arguably what decides Bitcoin’s fate moving forward is the directionality of the S&P 500. After all, analysts at JP Morgan, Goldman Sachs, and in the cryptocurrency space have all observed correlations between the two over recent months.<\/p>\n
Bears will be pleased to hear that analysts are starting to expect a retracement in stocks. (Notably, the retail audience is anything but bearish, buying everything they can. Retail investors are even going big into bankrupt companies like Hertz.)<\/p>\n
Jeremy Grantham is a stock trader that predicted some of the biggest macro declines in this asset class over the past few decades.<\/p>\n
Grantham now says that the ongoing rally in American equities is one without “precedence” and one that is “crazy.” He even went as far as to say that a “bubble” is forming.<\/p>\n
\n"This is really the real McCoy," says legendary investor Jeremy Grantham on whether the recent rally is a sign of a bubble to come. "This is crazy stuff." pic.twitter.com\/XetUBqqPBk<\/a><\/p>\n— CNBC's Closing Bell (@CNBCClosingBell) June 17, 2020<\/a><\/p><\/blockquote>\n
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- Glassnode reports that BTC miners have withdrawn the largest number of coins from their wallets to exchanges in over a year.<\/li>\n
- Institutions are still bearish on cryptocurrencies, at least according to CME data.<\/li>\n
- The Bitfinex “buy wall” around $8,500-9,000 is being eroded. That means there is a lower likelihood of BTC bouncing when it reaches that level.<\/li>\n
- Bitcoin’s order book delta has been “skewed massively to the sell side for almost six weeks.”<\/li>\n<\/ul>\n
Garner isn’t the only analyst currently expecting a correction.<\/p>\n
As reported by NewsBTC previously<\/a>, a trader noted that the entire crypto market is primed to see a 25% drop. Bitcoin dropping 25% would imply a price of ~$7,000 and Ethereum doing the same would result in a move to approximately $175.<\/p>\n
He shared the chart below to illustrate this sentiment. It shows that the crypto market failed to break out of an RSI downtrend and is struggling to maintain support levels.<\/p>\n
Bitcoin price chart shared by pseudonymous crypto trader Dave the Wave (@Davthewave on Twitter). Charts from TradingView.com<\/a><\/pre>\n
The S&P 500 Will Decide BTC’s Fate<\/strong><\/h2>\n
While there are these signs, arguably what decides Bitcoin’s fate moving forward is the directionality of the S&P 500. After all, analysts at JP Morgan, Goldman Sachs, and in the cryptocurrency space have all observed correlations between the two over recent months.<\/p>\n
Bears will be pleased to hear that analysts are starting to expect a retracement in stocks. (Notably, the retail audience is anything but bearish, buying everything they can. Retail investors are even going big into bankrupt companies like Hertz.)<\/p>\n
Jeremy Grantham is a stock trader that predicted some of the biggest macro declines in this asset class over the past few decades.<\/p>\n
Grantham now says that the ongoing rally in American equities is one without “precedence” and one that is “crazy.” He even went as far as to say that a “bubble” is forming.<\/p>\n
\n
"This is really the real McCoy," says legendary investor Jeremy Grantham on whether the recent rally is a sign of a bubble to come. "This is crazy stuff." pic.twitter.com\/XetUBqqPBk<\/a><\/p>\n
— CNBC's Closing Bell (@CNBCClosingBell) June 17, 2020<\/a><\/p><\/blockquote>\n