The upcoming weeks in the stock market hold a significant importance in determining whether a brief economic downturn or a prolonged one lies ahead, said forex trader and crypto analyst Alessio Rastani.
Rastani anticipates a potential upsurge in the S&P during the period of October-December 2022. He emphasized that if this rally falters and the market plunges again, it could signal a lengthy recession similar to the one experienced in 2008.
Rastani predicts this recession could extend until 2024, impacting the value of Bitcoin (BTC) in the process.
Discussing the recent pound sterling crisis, Rastani attributed it to the strengthening of the U.S. dollar, which is exerting pressure on various other fiat currencies like the yen and euro. However, he believes the U.S. dollar is nearing its peak.
Rastani suggested, “Once we witness a clear and sustained drop below the 111.5 and 110 levels on the dollar index, it may signal the dollar reaching its highest point. Subsequently, I anticipate a months-long decline in the dollar index back to the 104 to 100 range.”
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