U.S. Stock Market on the Brink: Will a Crash Drag Bitcoin Down With It?

The S&P 500 fell 1.5% on Thursday, taking the Index back to rest on the top of a 4.5 year channel. Will the Index break back inside and crash to the bottom of the channel, or is a bounce about to take place? The price of Bitcoin probably depends on the outcome.

S&P 500 bounce or crash?

Source: TradingView

The weekly chart for the S&P 500 gives us a fairly precise idea of where the index could go. Currently sitting at a little over 7,300 points, the index level is based on the top of the multi-year ascending channel and the 0.236 Fibonacci level. 

If the index level falls back into the channel, the very accurate Fibonacci lines provide an excellent idea of how far down it could go. The main area of support is the 5.0 Fibonacci at 6,970, while a bit further down at 6,800 is the golden 0.618 Fibonacci level.

Could the index level go all the way down to the bottom of the channel at 5,000 to 6,000 points? There is always that possibility. That said, the weekly Stochastic RSI indicator lines are reaching the bottom. There is usually a bounce.

… Continue reading the full article at the original source below.