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Was Warren Buffett Right? 5 Bitcoin Updates This Week

Bitcoin crashed $20,000 in a week as Ethereum retreated 40%, coinciding with Warren Buffett’s significant Apple stock sale and a worldwide stock market dive.

• Main Points:

  • Bitcoin price crash: Down nearly $18,000 in a week.

  • Global stock market impact: Stocks dive worldwide.

  • Liquidations: The crypto market sees $1 billion in liquidations.

  • Fed response: Potential rate cuts discussed.

  • Investor sentiment: Market sentiment shifts to extreme fear.

• Detailed Insights:

  • Bitcoin price crash: Bitcoin experienced a dramatic $20,000 crash, reaching its lowest levels since February. BTC/USD fell nearly $18,000 in days, coinciding with global market sell-offs driven by recession fears.

  • Global stock market impact: The Nikkei 225 faced a record-breaking drop, surpassing the 1987 "Black Monday" crash, while U.S. tech stocks like Nvidia fell significantly, erasing $1.2 trillion in market cap.

  • Liquidations: The crypto market saw over $1 billion in liquidations within 24 hours, with Bitcoin’s price hitting a low of $49,647. The combined market cap dropped more than $500 billion in three days.

  • Fed response: Speculation of a significant rate cut in September has increased, with the FedWatch Tool indicating a 96.5% likelihood. Analysts suggest emergency measures may be necessary to stabilize the economy.

Related: MicroStrategy Plans $2B Share Sale to Buy More Bitcoin

Investor sentiment: The Crypto Fear & Greed Index has plunged to "extreme fear," dropping from extreme greed levels just a week ago to 26/100. Analysts expect further market reactions as the U.S. trading week begins.

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Rich Dad Poor Dad’s Author Reacts to Bitcoin Crash

Robert Kiyosaki, author of the Rich Dad Poor Dad series, downplays Bitcoin's recent crash and sees it as a buying opportunity. He encourages investors to be brave and capitalize on market downturns.

• Main Points:

  • Kiyosaki's reaction: Sees crash as a buying opportunity.

  • Bitcoin's plunge: Drops to $50,751, lowest since February.

  • Global market impact: Stocks worldwide tumble.

  • Institutional correlation: Growing correlation with other assets.

• Detailed Insights:

  • Kiyosaki's reaction: Robert Kiyosaki downplayed the severity of Bitcoin's crash, viewing it as an opportunity to buy more Bitcoin and precious metals. He advised investors to be smart and brave, capitalizing on the downturn rather than panicking.

  • Bitcoin's plunge: Earlier today, Bitcoin dropped to an intraday low of $50,751, marking its lowest level since February. The cryptocurrency's decline mirrors a broader sell-off in global markets.

  • Global market impact: Japanese stocks entered a bear market with the Nikkei 225 plunging over 12%, the worst single-day drop since 1987. South Korea's Kopsi also fell by more than 8%. In the U.S., Nasdaq-100 futures dipped by 2.5%, indicating another challenging week for Wall Street following a tech sector rout.

  • Institutional correlation: Joe Weisenthal noted that Bitcoin's growing acceptance in mainstream finance has increased its correlation with other assets. During risk-off periods, investors sell assets, including Bitcoin, to raise cash, intensifying the cryptocurrency's connection to broader market movements.

Related: Kiyosaki Warns: Market Crash Is Here, 'Losses Are Substantial'

Kiyosaki's optimistic stance encourages investors to view the market crash as an opportunity for wealth-building rather than a setback, emphasizing the importance of strategic buying during downturns.

Bitcoin at Risk: $50K Support Under Threat Amid Bearish Trends

Bitcoin’s price has reached a five-month low, hitting $49,647 on Monday, August 5. Recession fears and significant drops in global markets drive this decline. Key support at $50,000 is under threat as bearish trends continue.

• Main Points:

  • Bitcoin hits $50,751, a five-month low.

  • Recession fears and global market downturns influence the decline.

  • Technical indicators suggest further downside potential.

  • Key support at $50,000 is critical for future price action.

• Detailed Insights:

  • Bitcoin’s Decline: On August 5, 2024, Bitcoin hit its lowest level in five months at $49,647, driven by recession fears and significant global market downturns.

  • Technical Analysis:

    • 1-hour chart: Bitcoin declined from $61,073 to $50,751, showing a steep downtrend. Stabilization near $50,000 is uncertain, and the short-term outlook remains bearish.

    • 4-hour chart: Consistent lower highs and lower lows underline the bearish trend. Minor recoveries appear weak, indicating potential further declines.

    • Daily chart: The drop from around $70,000 confirms bearish momentum, closing near $49,647 and below key support levels. Failure to hold $50,000 could lead to declines toward the $45,000 - $48,000 range.

  • Oscillator Analysis: Mixed signals with RSI at 25 indicate oversold conditions, but MACD and awesome oscillator in the sell zone reflect ongoing bearish pressure.

  • Moving Averages: All key moving averages are above the current price, signaling a negative trend. Breaking above these moving averages is necessary for sustained rallies.

  • Bull Verdict: Oversold RSI and potential consolidation around $50,000 could lead to a short-term rebound if support holds and the $54,000 resistance is broken.

  • Bear Verdict: Strong bearish momentum suggests further downside. If Bitcoin fails to maintain $50,000 support, the price could decline to the $45,000 - $48,000 range.

Related: Bitcoin Falls to $62K as Bulls Bet on M2 Money Supply

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This article is not financial advice. Market conditions can change rapidly, and past performance does not guarantee future results