Bitcoin (BTC) came into existence after the financial crisis of 2008 with a noble objective to reduce dependence on governments and banks that were responsible for the crisis and the bailouts that followed. The early supporters of Bitcoin (BTC) were those that truly believed in what it stood for. They did not care about the price of Bitcoin (BTC); they cared about the fact that it solves the double spending problem with fractional reserve banking as there will only be 21 million Bitcoin (BTC) in circulation. This was a noble cause but it was also a new technology which attracted the kind of people that wanted to profit off its novelty. Blockchain this, blockchain that soon we se saw a plethora of ‘blockchain projects’ come to surface with thousands of new coins flooding the market.

 This aggravated the double spending problem that Bitcoin (BTC) was supposed to fix. We have Bitcoin, Bitcoin Cash, Bitcoin SV and so on just for Bitcoin alone. Then there is Ethereum (ETH), Litecoin (LTC), Ripple (XRP) and thousands of other altcoins. It would not be unreasonable to say that the cryptocurrency market is now in a similar position as the stock market was before the financial crisis of 2008. This is an unprecedented level of greed because people have put money in anything that had the term “blockchain” in its whitepaper. All this cannot go on for long. The weekly chart for BTC/USD shows that previously Bitcoin (BTC) has broken trend line supports which have then become trend line resistances. While that may still happen, this time BTC/USD would be falling below the 200-week moving average to do that.

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The S&P 500 (SPX) has run into a key trend line support turned resistance for the first time since 2008. This is a strong sign that the stock market may be about to top out. Some of the strong catalysts that could bring about the next major correction or crash in the stock market are Bernie Sander’s series of victories and the global outbreak of Coronavirus. Please not that both Bitcoin (BTC) and the stock market have been in a major uptrend since the financial crisis of 2008 but that may be about to change.

Wall Street is already worried about Bernie Sanders cementing his front runner status. They put Mike Bloomberg in the race but it only helped Bernie Sanders and further exposed the agenda of the establishment and the status quo. The fact that Bitcoin (BTC) has seen all this popularity in such a short period of time also has a lot to do with the growing lack of confidence in governments and banks. Bernie Sanders has successfully created a revolution around it. If he gets elected, there may be a knee jerk reaction and we might see both the stock market and the cryptocurrency market crash as investors would run for the exits fearing “socialism” but it may be good for technologies like Bitcoin (BTC) long term as Bernie continues to fight the establishment.



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