Market Analysis for Sept. 23 2020

Stock Market

After the stock market recovery we saw yesterday, the markets opened slightly higher at the open but then declined throughout the day to close down 2% to 3%. It was a pretty broad based sell off, which initially didn't seem to be phasing bitcoin but by 1:00 PM EST when the selling really started to accelerate bitcoin started dropping as well. As far as the stock market is concerned I feel like this correction could well just be a healthy reset for the markets. Looking at the monthly charts below you can see just how extended the markets were above the 7 EMA and IMO due for a pull back. Time will tell if that is correct or if this sell off turns into something much worse. With an election coming up in a little over a month which could turn into a huge mess and COVID-19 still causing problems for the economy the markets are facing a lot of uncertainty. So I feel like the next 3 to 6 months could be very challenging for the markets.
This is the Dow Jones monthly chart, you can see that after almost reaching the all-time high and being very over extended it has now pulled back to the 7 EMA.
This is the Nasdaq monthly chart, you can see here too that after an incredible 5 month run and becoming very over extended it is also in the process of pulling back to the 7 EMA.
This is the Nasdaq monthly chart, you can see here too that after an incredible 5 month run and becoming very over extended it is also in the process of pulling back to the 7 EMA.

The Dollar

The dollar is having another very good day for the third day in a row and has pushed well above the 50 EMA and is breaking out higher.
The strengthening dollar along with the weakness in the stock market lately continues to put downward pressure on bitcoin. 
Dollar 092320.png

Gold

After hitting a new all-time high on August 6th gold has struggled and mostly moved sideways until 3 days ago when it started dropping again. For now gold has found support at the daily 200 EMA but time will tell if this support will last and bitcoin can begin moving higher again.
This drop in gold also has a negative affect on bitcoin.

Bitcoin

After moving sideways all day yesterday and half of today bitcoin resumed its downward slide. As of me writing this bitcoin has bounced from the $10,150 area, although I believe the bounce will be short lived. IMO if the $10,100 support level (upper red line) fails bitcoin will ultimately fall to the next support level (lower red line) in the $9400 to $9500 area. 
As I said yesterday, I have a feeling that the $10,100 support will fail and BTC will head down to finally fill the Futures gap, which runs from about $9665 up to $9925. There is a zone of pretty strong support around the $9400 to $9500 level which may hold and bitcoin can then build a base before heading higher again.
BTC chart 092320.png

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BigskyCrypto

Montana, USA

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