NEWS
Bitcoin becomes just like everything else on Wall Street as correlation with stocks jumps to 2-year high
"On a 90-day basis, the correlation between the daily percent returns of the cryptocurrency and the S&P 500 is 33 percent, according to Nick Colas, co-founder of DataTrek Research. That's the highest since the cryptocurrency started gaining public attention in January 2016 and well surpasses the prior high of 19 percent in mid-December, Colas said. "Bitcoin's attraction for institutional investors may increase correlation," Morgan Stanley equity analysts said in a separate note, raising the question of whether greater correlation with stocks limits bitcoin's potential as an investment asset."
Bitcoin: The Bottom Appears To Be In, Why Higher Prices Are Likely To Follow
"The Bitcoin (Pending:COIN) (OTCQX:GBTC) boom recently turned to bust may have finally found its bottom. The last year has been a wild roller-coaster ride for Bitcoin and other digital assets. Bitcoin skyrocketed in the lead up to its futures listing. At one point, BTC was up by a staggering 2,500% over the prior year. However, sentiment, hype, and hysteria reached a fever pitch late last year and some air was forced out of the Bitcoin bubble."
MARKET OVERVIEW
On the Bitcoin Daily Chart you will noticed that we completed a NEGATIVE TD SEQUENTIAL COUNT and we did so at a Weekly Support Level. These would indicate that there is a higher probability that we will see a bounce over the next few days. Whether or not Buyers will have the strength to change the trend will depend on price action at key levels. The first level to watch is the $10000-12,000 level.
This article is intended for educational purposes only and not meant to convey any financial advice. Trading can be a risky venture and personal due diligence is required.