Veteran Analyst Tom DeMark Issues Bear Market Signal, Is BTC’s $2 Trillion Valuation at Risk?

Bitcoin Price briefly crossed $ 98,200 Friday before slipping in a two-day decline, reflecting the liquidity of the weaker weekend and the growth of macro.

Bitcoin stands below $ 98,000, in the midst of lean weekend volumes

Bitcoin slipped 0.7% on Sunday, May 4, falling below $ 96,000 for the first time since the midst of the week. The drop marks a second day of consecutive losses, following a solid rally led by the institution which pushed the BTC to a summit of 70 days of $ 98,200 Friday, in accordance Flirtatious data.

Despite the recovery of a market capitalization of 2 billions of dollars briefly, the bullish rul of Bitcoin has blocked, coinciding with macro-intrudent weekend volumes.

On a weekly basis, Bitcoin is still up 4.5%, while the 30 -day performances remain strong at 12.8%, supported by ETF entries and a renewed accumulation of American businesses.

However, the resistance around the level of $ 98,000 proved to be difficult to break, in particular in the absence of clear tail winds.

At the same time, Ethereum's incapacity to maintain above $ 1,900 and the drop in long-term trading volume like Binance and CME confirm the short-term prudent feeling during the weekend.

Demark warns: the bear market in American actions could be imminent

Tom Demark, creator of the TD sequential indicator and technical confidence advisor to the main hedge funds, has issued a new warning: an American stock market summit is imminent and could give way to a full -fledged bear market in a few months.

Demark, which predicted precisely the summit of February and April of the S&P 500, says that the index shows signs of clear exhaustion.

His analysis underlines that two other closing peaks in the S&P 500 would finish a exhaustion cycle with 9 chefs, a historically reliable signal for trend reversals.

Once this happens, Demark expects a retirement less than 4,835, the April intraday of April representing a decrease of 20% + compared to the summits of February.

“A high is imminent. Too much technical damage has been caused,” said Demark,

He also added that the market remains vulnerable to improving commercial perspectives or global liquidity conditions.

What is the next step: will Demark's prediction derail the objective of $ 100,000 in Bitcoin?

The correlation of bitcoin prices with traditional markets, in particular the S&P 500, has become more and more relevant in the current macro environment.

On February 19, when China imposed reprisals and global markets, the Bitcoin correlation with the S&P 500 fell to an annual minimum of 0.27%. At the time, the BTC acted as a partial hedge, decoupling actions.

However, the softening position of President Donald Trump on Aggressiv prices and thrusts for rate reductions, has increased the broader feeling of the market in recent weeks.

Consequently, the BTC / S&P 500 correlation increased, reaching 0.82% at the time of the press.

This implies that Bitcoin can now respond more directly to American capital measures than earlier this year.

If the market correction predicted by DEMARK is motivated by geopolitical tensions or inflationist commercial prices, Bitcoin could attract safety flows and maintain momentum upwards.

Historical data show that BTC often benefits from global instability and monetary relaxation.

On the other hand, if the decline of the S&P 500 stems from systemic risk such as a recession, a financial contagion or an energy shock.

Bitcoin may not be spared. In such scenarios, investors generally flee risk assets and the BTC could undergo significant titles.

Conclusion: the prospects of $ 100,000 in Bitcoin are dependencies on Crash Catalyst

The objective of $ 100,000 in Bitcoin and a sustained market capitalization of 2 billions of dollars remain at hand, but the macro risks are now before and in the center.

That the call of the Tom Demark bear market derails, the BTC rally will largely depend on what motivates the next wave of actions.

If it is a policy or trade, Bitcoin can rally to the coverage. But if the slowdown that he triggered by a deep economic stress, the recession or the energy crisis, the price of bitcoin could fall with the peloton, as predicts Demark

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Ibrahim

Cryptographic analyst covering derivative markets, macro-tendencies, technical analysis and defi. His work presents in -depth information on the market, price forecasts and institutional quality research on digital assets.

Warning: The content presented may include the author's personal opinion and is subject to the market state. Do your market studies before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.