Bitcoin: The collapse continues on the US stock market dump

By Daniele Corno

Wall Street opens in the red and the declines continue: $90k pushes back the price and the chances of testing the $74,000 area increase

The opening of the US market favors declines

Wall Street opens trading on a downward trend and the situation flares up.

The pressure also continues for Bitcoin which, after losing $90,000 during the European session, continues to fall. The selling pressure increases following the opening of US stock markets, with the indexes opening in the red and fueling sales.

Standard & Poor’s 500 opened down -1.3%, Nasdaq 100 followed with a -1.75% loss of 21,000 points, while the DXY dollar index also saw only bearish candles.

The sell-off has a direct effect on the crypto market, with Bitcoin first and foremost, also losing the $88,000 level and heading downwards, with a low, at the time of writing, in the $86,000 area.

The situation is therefore starting to become more complicated in the short term, fueled by geopolitical tensions and global uncertainty. While the market watches, there are those, like the founder of Binance, who expected exactly this price movement 4 years in advance.

Waiting for the new headline: #Bitcoin “CRASHES” from $101,000 to $85,000.

Save the tweet.

— CZ 🔶 BNB (@cz_binance) December 17, 2020

Has fear returned to the crypto market?

It would seem so, if we look at public opinion.

As can be seen in the photo, the FEAR & GREED index has a value of 25, defined as an “extreme fear” value. This idea is made even clearer by the fact that until yesterday the index was in the 49 area, indicated as “neutral”, while just a month ago retail sentiment was in the greed phase, with levels above 70.

A drop of around 10% was enough to make us forget that only 4 days ago we witnessed the hack of Bybit, with negligible consequences on prices.

With this movement, to be confirmed at the close of the daily candle at 1 am, the chances for Bitcoin to test the previous ATH in the $74,000 area increase.

As always, we want to remind you that the market is unpredictable and these movements are part of a much broader picture. Liquidations have grown by over $300 million since this morning and BTC is currently trading below $87,000.