Bitcoin (BTC) topped $30,000 on June 9 as the Wall Street open revealed a current correlation with equities.
Traders see ‘relief’ in US CPI.
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair threatening to drop, while the S&P 500 also opened with modest losses.
The pair had remained in a tight range until June 8, this following bouts of volatility, which proved dangerous for long and short traders alike.
“The correlation between $SPX and $BTC is back close to 1, it seems”, tweeted Cointelegraph contributor Michaël van de Poppe on the day summing up the mood.
US jobless claims data had little impact on the markets as the main event is the Consumer Price Index (CPI) data to be released on June 10.
Van de Poppe predicted that the reading, which covers the month of May, would not exceed April’s figure, after data from Europe hinted that inflation was already slowing.
“Looking ahead to tomorrow, I think we will see the same from the United States, which can benefit relief”, He said part of another post on Twitter.
His counterpart and analyst Pentoshi, for his part, predicted that the BTC/USD pair could go as high as $35,000 before entering its next major corrective phase, once again based on stock market movements.
While SPX has played out so far the lag on btc has been disappointing. Still feel we rally to 33-35 before new lows fwiw https://t.co/tuZ9Ah7zxd
— Pentoshi Flightless Bird (@Pentosh1) June 9, 2022
While SPX has sold out so far, the drop in btc has been disappointing. Still feel like we go up to 33-35 before new lows for what it’s worth
The general sentiment, although low according to the indicators, was one of frustration for market pundits.
“Bitcoin recently bought a beautiful and affordable home at a low interest rate for 30 years in a sleepy town called 30,000. Apparently he has settled in and intends to live there forever”, reacted analyst and podcast host Scott Melker, known as the “Wolf of All Streets,” on the current trend.
BTC/USD has been centered around the $30,000 mark since May 9, its surrounding corridor only broken by the immediate fallout from the LUNA de Terra implosion.
2018 vs. 2020 for BTC price, says analyst
As to whether the current range would be broken to the upside or down, opinions remained very mixed.
While some had called for a drop to $14,000 or worse, others remained convinced that May was more of a macro bottom.
Van de Poppe had qualified previously “crazy” predictions of $12,000.
Weighing the chances of either outcome, meanwhile, the Trader_J Twitter account compared the current price action to the 2018 bear market and March 2020 cryptocurrency crossover crash.
“$BTC is currently at the 2020 Floor position. I have already said that it is exactly 2020. Maybe that is the Floor”, said to his followers.
“If it’s a bear market, like 2014-2018. Then there will be another crash. 2020 vs bear market.”
An accompanying chart showed Bitcoin’s Risk Metric, a tool devised by quantitative crypto analyst Benjamin Cowen, which supports the idea that lower levels are unlikely to enter.
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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