Analysts in both cryptocurrency and traditional markets have noticed an unexpected likelihood between a recent downturn and the one that caused a pandemic in March 2020.
The real question is whether this is the beginning of a greater downturn or whether there will be a significant turnaround such as in 2020, which led to a longer bull run in both cryptocurrency and stock markets.
Podcaster and author of The Pomp Letter, Anthony “Pomp” Pompliano is on the permabull side of accounting and tweeted May 18 that since March 1, 2020 when one Bitcoin cost about $ 8,545, “Bitcoin has risen by 340%.
Bitcoin has risen by 340% since March 1, 2020.
As central banks around the world depreciated their currencies at historical rates, there is only one asset that stands out from the package.#bitcoin is the austerity technology that protects billions of people from undisciplined monetary policy.
– Pomp (@APompliano) May 17, 2022
Among those hoping for a turnaround is Raoul Pal, CEO of investment firm Real Vision, who believes that Bitcoin markets have been painting a pattern that shares features with the March 2020 crash.
In its May 13 episode of Raoul Pal Adventures in Crypto, Pal explained that with last week’s price drop, Bitcoin (BTC) could have “shot straight” at the bottom of the current wedge formation and is now in the range that will eventually lead to another rise in will be. He said,
“It was exactly the pattern we had in March 2020.
On March 12, 2020, investors terrified the sale of many assets, including Bitcoin, for fear of how the market would be affected by the COVID-19 pandemic and international shutdowns. That day, Bitcoin fell 45% from $ 7,935 to $ 5,142, according to CoinGecko.
The current decline in traditional markets has led to a loss of $ 7.6 trillion in market value from Nasdaq’s tech-heavy, non-inflation-adjusted terms, more than the dot-com bubble and March 2020 sales.
The figures are obviously not adjusted for inflation, but still great to see in this context. image.twitter.com/aHem93mhpo
– Mati Greenspan (@MatiGreenspan) May 17, 2022
The Crypto Fear and Greed Index fell to 8 on May 17, the lowest since March 2020.
# Encryption Fear and greed is 8 out of 100.
Lowest number since COVID-19 crash in March 2020. image.twitter.com/jKVTcjrXV1
– Michaël van de Poppe (@CryptoMichNL) May 17, 2022
The 50-day moving average (MA) of financial, real estate and technology investments is close to the overwhelming oversight seen just over two years ago. In March 2020, these levels were 0, 0 and 1, compared to 2, 3 and 4 so far in May, based on data from Fidelity Investments. Last May 18 quackIn March 2020, Fidelity’s own CEO, Global Macro, called Jurrien Timmer “one of the most sold-out installations in the history of the market.
Gary Black, managing director of the Future Fund, pointed out on May 17 that Tesla (TSLA) was trading at a 20% discount, the highest price from analysts’ goalkeepers since March 2020. He added that “Over the next 12 months, $ TSLA rose by 660 %. ”
Last time $ TSLA traded at this high discount (25%) compared to the average Street PT ($ 984) was in March 2020, when the Covid crisis was at its peak. In the next 12 months, $ TSLA increased by 660%. Source: https://t.co/5fcVwWX78i mynd.twitter.com/z2AHe5zkVi
– Gary Black (@ garyblack00) May 16, 2022
The S&P 500 index also shows a similarity as it recorded the lowest 52-week 3,930 on 12 May and returned to 4,088 at the close of trading on 17 May. The financial advisor of the financial research company LPL Research said in a tweet on May 18 that The last time the index did so was in March 2020.
The S&P 500 rose just 2% in two of the last three days after a 52-week low.
Last time it happened?
March 2009 and March 2020.
– Ryan Detrick, CMT (@RyanDetrick) May 17, 2022
Before traders get too excited, market conditions are very different now, with rising inflation and interest rates. At the time, governments responded with unprecedented support packages to raise prices. Reuters reported on May 14 that the strong jump in the market in 2020 was driven by what it called “unprecedented Fed stimulus”.
Expert and author of the Rekt Capital newsletter, Rekt Capital tísti May 17 that BTC “is entering a period of unprecedented opportunity” based on an analysis on Log Channel which he says is similar to what happened in March 2020. However, it is not clear whether we have reached the bottom yet.
Connected: The Fear and Greed Index has been the lowest since March 2020, even though the price of Bitcoin goes up to $ 30.5K
Last time #BTC lost Log Channel was in March 2020
This is already $ BTC also dipped under the blue 200-SMA
Log Channel clearly shows that BTC is entering a period of too big an opportunity
– Rekt Capital (@rektcapital) May 16, 2022
As of this writing, Bitcoin has risen 1.1% over the past 24 hours trading at $ 30,545.
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