After skyrocketing and then crashing back down last year, Bitcoin has had an excellent 2019. Starting the year at a price of about $3,800, it hit a high of over $11,800 in June, and had continued to trade between $9,000 and $10,000.
That was the case until this past Tuesday, when in little over an hour, Bitcoin dropped more than 10% to $8,478.71, and continued sliding from there. By the end of the day, it was down more than 14%, and as I’m writing this, the benchmark cryptocurrency is down over 20% for the week.
After such a good eight months for Bitcoin, this “flash crash” took many traders by surprise. So it’s no wonder that pages and pages of explanation have been written. Everything from technical anomalies and futures contracts to manipulation by shadowy organizations has been blamed.
But sometimes, the answer to a complex problem is actually quite simple, especially to us traders.
In this case, that answer is right in front of our eyes…
Good morning 10-Minute Millionaires, and welcome to your weekly video market update! Today, I’d like to focus on three major happenings in the financial world…
First, we’ll look back at the movements of the S&P 500 over the past few weeks. Overall, the market’s movement – as well as what it’s likely to do going forward – has really been “a tale of two boxes.” I’ll give you the key resistance and support level to keep a close eye on, and what a break above or below each could mean for the market.
Next, I’ll get into what’s been going on with the mega-tech stocks. We’ll take a look at which of the FAANGM stocks have performed well since September, which have disappointed investors, and some of the reasons for each. Their performance gives us a good indication of the broader market’s strength, and I’ll show you exactly how to see that for yourself.
Finally, We’ll take a brief look at an important movement for a different asset class, Bitcoin. The benchmark cryptocurrency took a big drop this week, and I’m going to go over some of the technical reasons for the big sell-off, as well as where I see Bitcoin headed from here.
Click below to watch.