😱 Bitcoin’s Baffling Plunge: Blip or Busted Bubble? 🤔

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In the waning light of Friday, the mighty Bitcoin, like a drunkard after a long binge, stumbled and dropped a meager 2.3%. It tumbled through the ascending trendline it had clung to for 18 long days. Is this just a cheeky ruse, or the start of a terrifying dive to the depths of $70,000?

The crypto market, a fickle creature, is currently shrouded in fear. The stench of the traditional market’s misfortunes, like Thursday’s minuscule S&P 500 dip and the Nasdaq’s baby step downwards, has wafted over to the crypto realm. Bitcoin, ever the drama queen, has fallen 2.5% as of Friday, and the once proud uptrend now lies in tatters on the short-trend time frame.

ETFs Keep on Truckin’, Nine Days Straight

Amidst this downward spiral, the U.S. Spot Bitcoin ETFs have seen a ninth consecutive day of net inflows. It’s as if the clients of Blackrock and friends are saying, “Fear? What fear?”

Strategy Grabs Another Heap of the Digital Gold

Michael Saylor’s Strategy, with the boldness of a king, declared the acquisition of a neat pile of Bitcoin on Monday—6911 shiny BTC. This move boosts the company’s treasure trove past the 500,000 BTC mark, a sum that would make Croesus blush, amounting to 2.41% of the entire 21 million Bitcoin supply.

Gamestop Dips Toe in Bitcoin’s Murky Waters

Gamestop, the grand poobah of Xbox and PlayStation gaming, has decided to follow in Strategy’s footsteps and dip its toes into Bitcoin’s murky waters. For a company that some say is on its last legs, this could be the Hail Mary pass that saves them. But the market, ever the skeptic, hasn’t applauded the move; Gamestop shares have taken a nosedive, plummeting over 22% since Thursday’s opening bell.

$BTC Scrapes the Bottom of the Barrel

Peering into the 4-hour chart of Bitcoin, one might redraw the ascending wedge as a channel, just for kicks. And lo and behold, Friday’s dive merely kissed the channel’s bottom, like a lover saying goodbye. Is this an attempt to put lipstick on a pig? Maybe. But for now, the channel stands firm, and the short-time frame Stochastic RSIs hint that a rebound might be on the horizon.

If the channel decides to pack its bags and leave, and given its bearish flag-like appearance, the price might just saunter down to the $80,000 support level. 

U.S. Stock Market: Bitcoin’s Crystal Ball?

For those seeking signs of Bitcoin’s future, the S&P 500 is like the Magic 8-Ball of the stock market. Glancing at the 2-week chart, one can’t help but notice that the current ‘Trump tariffs’ fiasco has caused more of a stir than the Japanese carry trade crash of July 2024.

Whereas the 2-week candle was gobbled up by the ascending channel back then, today’s downturn has the candle opening way down south. Yet, the sturdy support at $5,600 remains unbroken, and a rebound could be brewing.

Bitcoin’s fate is closely tied to the U.S. stock market’s good graces. If the stock market decides to smile, Bitcoin might just soar to new heights by year’s end, closing out a typical bull cycle. 

Will this cycle be a carbon copy of those before it? Only time will tell. 

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2025-03-28 14:06