Bitcoin Takes a Nosedive: Is It the End or Just a Teasing Tumble?

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Oh, what a jolly mess we find ourselves in! Bitcoin has plummeted to a staggering $85,000! 🎢 One might wonder, is this cheeky cryptocurrency the canary in the coal mine? Or perhaps just a pesky little bird flapping about, while the rest of the financial world watches with bated breath? 🤔 Could the US stock market be gearing up for its own dramatic dive? Or is Bitcoin merely putting on a theatrics show before soaring back to the moon? 🚀

Is the U.S. stock market about to do a somersault?

Now, if we squint at the weekly chart of the S&P 500, the big cheese of US companies, it appears as though the Index is wobbling precariously on the edge of a cliff! 🧗‍♂️ After a merry little jaunt up the ascending channel for years, it seems the next grand move is a delightful plunge down to the bottom. The Stochastic RSI and RSI indicators are hinting at this spectacle as they tumble back down like a couple of clumsy clowns!

But fear not! It doesn’t mean the price must nosedive straight to the very bottom. No, no! It could bounce off some horizontal support around $6,100, a mere 10% correction that wouldn’t spell doom and gloom but might just tickle the U.S. stock market back to life after such a long, overhyped party! 🎉

So, where does that leave our dear friend Bitcoin, you ask?

BTC ready for a cheeky comeback against the S&P 500!

Behold the magical weekly chart showing the ratio of BTC to the S&P 500 (SPX)! Since mid-July, our beloved BTC has been slipping away against the SPX like a slippery banana peel, and so far, we’ve seen a hefty 36% correction. 🍌

Currently, this ratio is dangling at a decent horizontal support level. But if it flops, there’s a sneaky Fibonacci level lurking just below, poised to signify a whopping 40% correction overall. Yikes! 😱

The Stochastic RSI and RSI indicators at the bottom of the chart are both looking rather peaky and may be ready to spring back up, suggesting that BTC could once again strut its stuff against the US stock market. This could happen quicker than you can say “to the moon!” 🌕

$BTC price playing a dangerous game!

Another shaky tumble for the $BTC price took it down by 3.4% on Monday, sending market sentiment spiraling into an abyss once more, with the Fear and Greed Index firmly stuck in the Extreme Greed segment, scoring a dismal 11! 😩

Our poor $BTC price is now teetering on the brink of disaster, trapped beneath the major bull market trendline and threatening to dip below the downtrend line it had only just danced above a week ago! Oh, the suspense! 🎭

But fret not, dear bulls! There’s a sturdy horizontal support level at $86,000, which they’re praying will bolster the support of those tricky trendlines! 🙏

The Stochastic RSI indicators on this timeframe are heading south, possibly ready to cross back up by Wednesday or Thursday, just in time to kick off the next rally, fingers crossed! 🤞

The correction is winding down!

In the weekly chart of $BTC, our brave little price is flirting with the major bull market trendline once more, strong support holding its hand. 💘 It might just leap clear of the falling wedge structure by next week as the bottoming process draws near, like a grand finale at a circus! 🎪

And let’s not forget the all-important Stochastic RSI indicators, which are currently in the throes of crossing down again. Will they turn back up by next week or take another tumble? Stay tuned, because this correction is likely nearing its end, and oh, what a show it’s been! 🎬

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2025-12-16 14:19