• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Sensei Inu Logo Sensei Inu Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino
Breaking News: BREAKING: Three Arrows Capital Co-Founder Receives 4-Month Jail Sentence In Singapore
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino
Bitcoinist.com
No Result
View All Result
Breaking News: BREAKING: Three Arrows Capital Co-Founder Receives 4-Month Jail Sentence In Singapore
bitcoin leverage stock market

Why Lack of Leverage Could Keep Bitcoin and Stocks Climbing Despite Selloff

Tony "The Bull" by Tony "The Bull"
3 years ago
in Bitcoin
0

At the turn of September, Bitcoin crashed by over $2,000 to below $10,000, and the stock market saw a steep selloff – particularly in tech stocks like Apple, Amazon, Alphabet and other A-list companies.

But the selloff taking pause may only be “emboldening bulls” and further encouraging them to buy the dip with confidence. And until more leverage is added to the market, analysts say, more upside is likely before the bubble bursts.

Is The Tech Stock Bubble Popping Or Are Emboldened Bulls Buying Up The Dip?

All across Wall Street, top stock market analysts are warning about the current mania getting out of control. Tech company valuations have ballooned since the pandemic began, and only recently took a step backward toward reality.

The selloff in the six top tech stocks combined was equal to or greater than five Bitcoin network and market cap’s worth of value.

RELATED READING | HOW TURNING STOCK MARKET SENTIMENT COULD DRAG BITCOIN DOWN FURTHER

The ongoing correlation between crypto and the stock market had previously kept the asset classes climbing side by side. When sentiment turned recently, both classes fell again together.

The continued parallels in price action could mean that Bitcoin will benefit from stock market bulls being “emboldened” by recent support holding, according to Andrea Cicione, head of strategy at independent investment research firm TS Lombard.

bitcoin leverage stock market

BTCUSD Versus NDX Nasdaq Tech 100 Index  Comparison | Source: TradingView

How Bitcoin Can Survive The Stock Market Bubble Burst And Benefit From FOMO

Cicione claims that unlike other peaks in price, there’s a distinct lack of leverage in the market that has prevented a trigger in more downside. The amount of leverage he says may not be”enough to burst the bubble,” but closes his comment with a “yet.”

“If the recent selloff does not intensify further, the whole episode may end up simply emboldening the bulls to buy the dip and take even more risk,” Cicione said.

After such a severe drop, weak hands have already been shaken out and now with support holding both Bitcoin and stock market bulls may be regaining both their footing and confidence for another push higher.

Further growth in the stock market would – as Cicione warns – could reflate the tech stock bubble and keep valuations climbing. But that doesn’t change the fact that there’s still a bubble in stocks that is ready to burst.

RELATED READING | TECH STOCKS BLEED OUT FIVE FULL BITCOIN NETWORK’S WORTH OF VALUE IN THREE DAYS

When it does, things could very well get bad for Bitcoin and cryptocurrencies, unless they finally shake off the correlation between the two vastly different types of financial assets.

As for what could separate the two classes once and for all? Confirming $10,000 as support and a triangle breakout, could cause serious FOMO in crypto, beyond what’s going on in stocks. The allure of prices soaring while stocks potentially start to stagnate or suffer could further fuel Bitcoin’s rise from the inflow of stock capital alone.

As it stands, Bitcoin bulls could have more to gain from support holding market-wide here.

Featured image from DepositPhotos, Charts from TradingView
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Tony "The Bull"

Tony "The Bull"

Tony "The Bull" is a level 3 CMT student (passed level 1 & 2), technical analyst, Bitcoin supporter, and avid speculator. Tony is deeply fascinated by core market principles such as Elliott Wave Theory as they tie into mathematics like Fibonacci ratios. Market timing though DeMark indicators, Ichimoku, Gann tools, or Hurst Cycle Theory are also of key interest. Tony provides completely original content driven by exclusive, independent research. For more insights and education from Tony, check him out on Twitter or in his free TonyTradesBTC Telegram channel. Follow @TonyTheBullBTC on Twitter and search CoinChartist on YouTube.

Related Posts

Bitcoin price $30,000

Bitcoin Price Sets Sights On $30,000 As Holder Metric Hits New All-Time High

3 hours ago
Bitcoin

Bitcoin Long-Term Metrics Point To A Different Scenario Than 2019 Fakeout: Top Analyst

5 hours ago
Bitcoin

Bitcoin Hash Rate: Public Miners Account For Just 28% – Is Decentralization In Jeopardy?

8 hours ago
Bitcoin

Bitcoin Recent Hiccup: Understanding The Invalid Block 

1 day ago
Bitcoin

Could Bitcoin Be On The Verge Of New ATH Rally? Analyst Identifies These Conditions

3 days ago
Bitcoin

Bitcoin Miners On The Defensive: Market Uncertainty Spurs Revenue Diversification – Analyst

4 days ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Play Finance

Top Casinos

Trust Dice
Trust Dice
Punt Casino
Punt Casino
mBit
mBit

Press Releases

  • Meta Force and Lado Okhotnikov Presented the Results of...

    6 hours ago
  • Bitcoin (BTC) and Litecoin (LTC) Ascending – Is it a...

    10 hours ago
  • Ethereum (ETH) and Ripple (XRP) Facing Key Levels –...

    10 hours ago
  • While Stellar And Avalanche Falter, Bitcoin Spark Heading...

    14 hours ago
  • Crypto Sports Betting Just Got A Lot Better –...

    14 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino

© 2023 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.