At the time of writing, Bitcoin is trading at $16,923, and it is down 1.4% since yesterday’s close. On the technical front, the four-hour chart points to a bearish divergence, as the Relative Strength Index (RSI) appears to be forming lower highs while BTC is making higher highs. This could mean that there is an impending correction in play.
The daily chart shows BTC has broken out of the 20-day Bollinger Band, indicating that the cryptocurrency may continue its current downtrend. On the upside, the next major hurdle for BTC is $19,100. Overall, Bitcoin remains in a healthy uptrend, and it is likely to attempt to break out of the $19,100 resistance level soon. However, traders need to be cautious as further drops may signal an end to the current bullish momentum.
In terms of fundamentals, it is important to note that the crash appears to have been caused by the collapse of FTX and its subsidiaries. This indicates that institutional investors may be exiting the space for now, which could put BTC’s rally in jeopardy.
The long-term outlook remains positive, and BTC will likely continue to recover from the recent crash. However, traders should keep an eye out for any further developments in this market before taking a long position.
The outlook remains bullish despite the current dip, and investors who are still looking to get into cryptocurrencies may find this an opportune time to enter the market. As always, it is important to exercise caution and do your research before investing.
Bitcoin and stock market correlation drops in an unexpected way
The correlation between Bitcoin and the stock market has been on the decline in recent weeks. This is likely due to an increase in institutional investors entering the crypto space, as well as a growing recognition of cryptocurrency as a legitimate asset class among traditional finance players
The weakening correlation could be seen as a sign that Bitcoin is becoming more independent from the stock market, which could be a good sign for the future of a digital asset. It is worth noting, however, that any sudden changes in the stock market can still have an impact on BTC’s price movements. Thus, it is important to keep track of both markets when making investment decisions to make sure that your investments are not too heavily tied to the stock market.
Bitcoin’s price has taken a hit in the last few days due to the collapse of FTX and its subsidiaries. Despite this, the long-term outlook for BTC remains bullish and investors. With some patience and strategic decision-making, traders should be able to capitalize on the current price dip and benefit from Bitcoin’s long-term growth trajectory.
Returning to $19k could indicate a bullish outlook for Bitcoin
The next major resistance level for Bitcoin (BTC) is at the $19,100 mark. If BTC manages to break this level, it could indicate that the cryptocurrency is on its way back up, and a return to all-time highs might be in play soon.
On the technical front, the four-hour chart points to a bearish divergence, as the Relative Strength Index (RSI) appears to be forming lower highs while BTC is making higher highs. This could mean that there is an impending correction in play, but a break at $19k could negate this and signal a major uptrend.
Overall, the current price dip may present an opportunity for investors to buy into Bitcoin at a lower rate. However, caution should still be exercised as there are still some hurdles to overcome before the bulls take control. A break at $19k could indicate that Bitcoin is on its way back up, and a return to all-time highs might be in play soon.