Bitcoin is trading sideways while altcoins have rallied significantly in the past 24 hours. ETH/USD is up more than 4.6% for the day and has now broken past the key resistance at $233. It has effectively broken past the 200-moving average, but BTC/USD continues to trade sideways and has failed to break past the resistance at $9,156. This is a sign that the market as a whole may be about to top out. This is a pattern we have seen before and altcoins generally top out after Bitcoin does. The 4H chart for BTC/USD shows that Bitcoin risks a major decline within the descending wedge if the bulls fail to come to its rescue this time.

The stock market is expected to see another big move today. It is the last trading day of the week which means that investors may not want to hold on to their positions over the weekend considering the uncertainty around the Coronavirus situation as well as political developments that will now see Bernie Sanders take Joe Biden head on. This is something we have not seen before as the mainstream media has been effectively trying to protect Biden from tough questions and it was easy for him to hide behind other candidates previously. Bernie has also been soft on Biden and has still not touched some areas that could really hurt Biden. With Elizabeth Warren out of the race though, he now has a clear shot at Biden and this has the establishment very concerned.

It is important to realize that as the one-to-one debate progresses, a lot of Democrat voters would realize that there is nothing much that makes Joe Biden different than Trump (yes, racial comments included). There is a lot of stuff that Bernie has been very carefully avoiding not to talk about but it seems like this time he does not have much of a choice as the establishment seems hell bent on giving him the 2016 treatment once again. For the stock market, this is not a good sign long-term whether Biden wins, Sanders wins or Trump wins.

If Biden wins, many angry “Bernie bros” (and there’s a lot of them) would not just sit down and take it. If they can call a fellow progressive Elizabeth Warren a snake, they won’t just sit down and let the DNC steal the nomination from Bernie once again. So, there is going to be a lot of chaos and uncertainty if Joe Biden gets the nomination or wins. If Sanders gets the nomination, Wall Street would be scared to its core and we might see the S&P 500 (SPX) decline sharply. If Trump gets elected, we can expect anarchy as the Democrats do not seem prepared for another four years of Trump. Either way, the situation is bearish for the stock market and therefore for Bitcoin (BTC) in the long run. For now, as long as the index remains above the 200-week moving average, we have no reason to be bearish on the stock market.