/Major Markets Spell Trouble For Bitcoin

Major Markets Spell Trouble For Bitcoin

Bitcoin price action will continue to be boring for the next few days. Until we have a retest of the top of the symmetrical triangle, BTC/USD will continue to linger on and slowly make its way towards the retest. However, this is a time to look at the big picture and see what we can expect next and how to be best prepared for the next big move which we are very close to.

The S&P 500 (SPX) is currently at a similar point where we are looking for near-term upside. However, both the stock market and the cryptocurrency market share the same long-term outlook. Both of these markets are primed for a major correction long-term and it would be very unreasonable to enter long positions here in anticipation of significant upside. Even though we expect Bitcoin and the rest of the cryptocurrency market to go up near-term, it is not a good time to take a long position.

Meanwhile, the EUR/USD forex pair is also bullish near-term and we could see it rise higher but its long-term outlook is very bearish as we can see on the weekly chart. It has repeatedly failed to close above the 200-week moving average and there is no use thinking that it might this time. The odds are stacked against stocks, cryptocurrencies and the Euro at this point. The winner is the Dollar Currency Index (DXY) which is ready to shoot towards a new yearly high from this point forward.