Bitcoin price fell 5% from a high of $ 7,000 when the S&P 500 index started to reverse

Bitcoin is likely to drop to 7k5

After peaking at $ 7,000 yesterday, the price of Bitcoin (BTC) has dropped to a lower level - dropping from a high of $ 6,950 to $ 6,000 in just a few minutes, recording a 5% loss on the day. This move by BTC led the altcoin market to follow, leaving most altcoins to suffer similar losses to the king coin.

Bitcoin 1 hour chart. Source: TradingView
Bitcoin 1 hour chart. Source: TradingView

Bitcoin's recent weakening came when stock markets showed signs of reversing after last week's staggering price hike - arguably the strongest rally in decades.

According to data from Google Finance, the S&P 500 closed down 2.2% from the previous day, while the Dow Jones lost the same score. The trend continued in the next session, with both the S&P 500 and the Dow Jones down 0.74% from Wednesday's close.

Considering that Bitcoin has fallen in tandem with the stock market, it seems that the correlation between the two asset classes is emerging again, with some claiming that BTC is a store of value.

Bitcoin may pop up from here

BTC is at its lowest level for the past few days, but the leading cryptocurrency may be preparing to bounce. A famous trader recently observed see that Bitcoin is entering the lower Bollinger band on the 6-hour chart, which usually leads to an immediate bounce.

When the lower Bollinger band was penetrated at the end of March, BTC increased by about 8% in the following two days. Moreover, four times ago, the coin penetrated the upper Bollinger band, after days of correction.

Not too fast

Unfortunately for the bulls, the bearish case seems to be more popular than the bull run at the time.

In an article on Monday, Bloomberg wrote that BTC was then leaning towards a decline, citing "the GTI Vera convergence period index - used to measure changes up and down."

At the time, this indicator showed that the uptrend started in mid-March after the "surrender" event began to narrow - indicating a decline in strength, "potentially indicating Bitcoin is in a shortage. slightly and can retest the $ 6,500 level. ”

Source: Bloomberg
Source: Bloomberg

Further price cuts were echoed by other technical analysts. Trader of electronic money Smart Contracter shown Given that Litecoin is currently creating new lows, it is likely that BTC will follow, especially when this altcoin acts as a warning sign for the rest of the market.

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According to NewsBTC
Translated by ToiYeuBitcoin


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