Bitcoin price stayed at $19K all weekend, with no notable price changes. Bitcoin’s price is $19,112 to $19,342, indicating little volatility.
To determine whether or not it is a good time to buy Bitcoin during the current bear market, buyers should first consider how the S&P 500 index has been performing.
The chief investment officer at Morgan Stanley and authority in bear markets, Michael J. Wilson, recently predicted a 16% increase in the Dow Jones Industrial Average soon. However, the ascent will be slowed by a drop in earnings or a genuine recession.
Is A Short-term Rally On The Charts?
In a report from October 17, Bloomberg cited bear market specialist Michael Wilson’s prediction of a temporary uptick in U.S. stocks when the S&P 500 approached its 200-week moving average (WMA). Under the weight of rate hikes and deteriorating macroeconomic conditions, the S&P 500 plummeted by 25% this year.
Bitcoin’s (BTC) price is trapped below $20,000 despite the 200-day moving average’s proximity to the $23,000 mark. Since Bitcoin’s price dropped below $20,000 in June, there have been many bear market rallies. As a result of the bulls’ inability to maintain their momentum, the bears have taken control, sending Bitcoin’s price back down below $20,000.
After a brief upswing in August, the BTC price has been unable to break above its 200-week moving average. BTC has gained about 2% in the previous 24 hours, trading at around $19,400 at the time of writing.
Michael J. Wilson, arguably the most renowned bearish figure on Wall Street, accurately estimates the financial meltdown that transpired this year. A 16% increase from current levels is hypothesized, despite his pessimistic long-term outlook on the stock market.
Even though it’s a huge number, it’s consistent with bear market rallies this year and the ones before it.
Gripped With Fear
For the next several months, investors will be watching the market closely in anticipation of the November 2 Federal Open Market Committee meeting. Fears of a recession haven’t deterred the Federal Reserve from maintaining its hawkish stance on inflation.
The Dollar index is hovering at 113, and the probability of a rate hike of 75 basis points (bps) is at 95.4%, as reported by the CME FedWatch Tool.
That being said, Michael Wilson of Morgan Stanley thinks inflation has reached its highest point. And even if core CPI has climbed to a 40-year high, the Fed may still opt to increase rates by 50 basis points.