October 5, 2022
Chicago 12, Melborne City, USA
Crypto

A Dot Com Magnitude Crash To Rock The Crypto Market?

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The crypto market has gone through a rollercoaster over the weekend. This follows the listing of Bitcoin’s position above the $ 40,000 level last week, although Digital Assets has done a good job above the $ 36,000 support level. However, it seems that this bearish trend may not be nearing its end in view of some recent chart action in the stock market. If this forecast proves fruitful, the market could soon lower further value from its market cap.

A dot com-like crash?

Peter Brandt recently posted a related chart that bears a striking resemblance to the dot com crashes of the early 2000s. Brandt is known for predicting the 2018 crypto market crash and is a respected chartist in space. After his chart proved to be known, his predictions have become quite popular among crypto investors.

Related Reading | TA: Bitcoin accumulates below $ 39k: the key could cause another fall

That’s why Brandt posted a chart on the Nasdaq 100 that looks like a dot com chart, worrying investors just before the crash. Basically, if this were the case in 2001, the market would see many stocks lose their value very quickly.

Bitcoin price chart from TradingView.com

BTC recovers above $38,000 | Source: BTCUSD on TradingView.com

Now, it is important to note that the Nasdaq is trading at significantly higher levels than in the early 2000s. However, recent market movements seem to reflect closely the movements recorded before the crash. Brandt describes this deja vu as an arrow pointing to the same market type from both points in time.

How it affects crypto

As the crypto market has grown, so has the relationship with the stock market. This has closely linked the movement of the stock market to the crypto market. This means that when the stock market goes up, the crypto market goes up and vice versa.

Therefore, a dot com level crash in the stock market can have some serious effects for the crypto market. If stocks continue to lose a significant portion of their value in a short period of time, the crypto market could follow, leading to similarly massive crashes across cryptocurrencies, both large and small.

Related Reading | Bitcoin struggles to hold 40K while tracking crypto US stocks

This does not detract from the brand’s predictions for leading digital assets in the crypto market. Bitcoin, which is facing opposition to the $ 40,000 mark, could be as low as 28,000. According to To the brand. That would be the end of a beer channel, he added.

Whether or not an explosion like dot com is imminent, the indicators for the crypto market are not currently favorable. With the market almost 50% below its all-time high, a further downtrend could come as investor sentiment shifts to the negative.

Featured image from CNBC, chart from TradingView.com



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