Bitcoin price drops over many days as data alerts investors to “overbought” equities

On August 16, as worries about the future of the American financial markets grew, Bitcoin (BTC) fell below intraday support.

After a startlingly quiet 24 hours, decline began at Wall Street’s opening as prior highs over $25,000 seemed to be a double peak.

A normally cautious Il Capo of Crypto predicted that given Bitcoin’s failure to break out, upside was now very improbable.

He started the day’s first new Twitter update with, “Two alternatives, both bearish.”

“1) A rise to or around 25400–25500, followed by a reversal of this medium-term bullish trend and a down to new lows. 2) From here, it’s straight to new lows. Below 23500 and below 22500 are bearish confirmations. Continued bullish movement: consolidation over 26k.”
The notion that U.S. stocks were hitting long-term limits of their own supported the claim that BTC/USD would eventually fail to overcome resistance.

Jurrien Timmer, director of global macro at asset management Fidelity Investments, identified a significant number of S&P 500 companies trading above their 50-day moving averages in his own study.

88% of the equities in the S&P 500 are trading above their 50-day moving average, which is astonishing, he said.

Is there any evidence that a new cyclical bull market is in motion, or is this just a bear market rally that has reached an extreme overbought level?
In a later article, it was noted that numerous equities had RSIs of 70 or above, which Timmer said indicated the “momentum” driving the present rise.

Timothy Peterson, an investment manager of Cane Island Alternative Advisors, has a similarly dismal outlook for the S&P 500 over the long haul.

At the time of writing, the index had down 0.3% on the day while the Nasdaq Composite Index had fallen 1%.

DOG dominates alternative currencies.
Dogecoin (DOGE), one of the top ten cryptocurrencies by market size, led the advances among altcoins.

On May 18, DOGE/USD crossed the $0.09 threshold for the first time. This represents gains of 86.5% from the pair’s most recent macrobottom in mid-June.

1-day candle chart for DOGE/USD (Binance).
Ether (ETH), in comparison, hasn’t changed in price over the last day but is still below $1,900.

1-day candle graph for ETH/USD (Binance).
ETH/USD was still expected to rise above its own June lows, according to James Stanley, senior analyst at trading company DailyFX, who set a support level of $1,818.

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