Bitcoin (BTC) erased a portion of the gains that pushed its price above $41,000 on April 14 as Wall Street opened the day in turmoil.
Bitcoin follows stocks down
Data from Cointelegraph Markets Pro and TradingView followed the BTC/USD pair in its rapid losses to open the day on April 14.
The previous day, the pair had approached $41,600, But the momentum petered out overnight, with the largest cryptocurrency in the market taking minutes to wipe almost $1,000 off its price at the opening bell.
At press time, $40,000 was still in play as support, but the bulls had also failed to make up lost ground.
Traders began to favor a further decline in light of the mood fueled by a disappointing start to the US stock market and Bitcoin’s implied correlation.
This won’t be popular opinion but I think something like this is very likely.
Won’t be surprised at the slightest if it doesn’t, but gut is telling me to keep an eye on it. pic.twitter.com/ym1SYXRZR2
— Nebraskangooner (@Nebraskangooner) April 14, 2022
It will not be a popular opinion, but I think something like that is very likely.
I wouldn’t be the least bit surprised if he doesn’t, but my gut tells me to keep an eye on him.
The S&P 500 (SPX) was trading down 0.34% at the time of writing this analysis.
“The correlation coefficient for BTC with the SPX has reached very high regions of ~0.9 on a 7 week basis,” he pointed the popular Twitter account, CRYPTOBIRB.
“It shows that, on average, Bitcoin has traded like the large-cap stocks and the connection between the markets is evident. As the correlation fluctuates, investing may be ahead.”
Short-term price action therefore left few impressed as traders kept their guard up for a deeper pullback. For Anbessa, only the sustained retention of USD 41,300 would alter the immediate outlook.
Hopium:
– potential early parabola
– inverse H&S neckline highlighted greenI don’t see this scenario playing out atm, ready to get stopped out on a bear flag breakout.
A relcaim of Kijun Sen $41.3k could change the short-term outlook. Still LONG above bear flag support.
— ANâ‚¿ESSA (@Anbessa100) April 14, 2022
Hopium:
– potential early parabola.
– Reverse head and shoulders pattern neckline highlighted in green.I do not see this scenario playing out at this time, ready to be stopped on a bear flag breakout.
A Kijun Sen relcaim of $41,300 could change the picture in the short term. Still long above bear flag support
Dogecoin sees bullish forces return
Bitcoin’s turnaround has affected altcoins as well, with only Dogecoin (DOGE) managing to buck the trend.
This was due, in classic fashion, to the shock of noise from Tesla CEO and DOGE advocate Elon Musk.
The latest chapter in the story of the billionaire’s involvement with Twitter came in Musk’s form of request to buy the company or “reconsider” his 9.2% stake.
The DOGE/USD pair surged on the news, but a subsequent decline left daily gains down just 2%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
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