US Stock Market Wobble Sparks Fears of Crash-Triggered Bitcoin Downturn

The US stock market is on a precarious edge after a 1.5% drop in the S&P 500 index on Thursday, which has taken it back to the top of a four-and-a-half-year ascending channel.

This development has raised questions about whether the index will break back inside and plummet to the bottom of the channel at around 5,000 to 6,000 points or if a bounce is imminent.

The weekly chart for the S&P 500 provides valuable insights into its potential trajectory. Currently sitting at over 7,300 points, it's situated at the top of the ascending channel and the 0.236 Fibonacci level.

Should the index fall back into the channel, the Fibonacci lines indicate that the main area of support lies at around 6,970 points, with the golden 0.618 Fibonacci level at approximately 6,800 points.