Bitcoin (BTC) saw continued strength on June 21 as Wall Street trading opened with a trip to near $21,500.
Analysts eye decreasing correlation of BTC stocks
Data from TSWT Markets Pro and TradingView followed BTC/USD as it hit $21,633 on Bitstamp, its best showing since June 16.
The Biggest Cryptocurrency Managed To Avoid Further Losses In The New Week; so far these are booked for the weekend. Thus, the futures markets reopened without suffering a drop to $17,600.
While some intended to short BTC at current levels, the mood among market participants was broadly “wait and see” as US equities opened. The S&P 500 and Nasdaq 100 both added about 2.5% at the open.
Popular trader Bierre was watching the 200-period moving average (MA) on the four-hour chart. For him, breaking it the same day would be a sign of strength that we haven’t seen for several weeks.
To emphasize differently why today the fight should be all about the H4 trend -> May 14-16.
The post-dumping rally, broke the H4 trend for the first time since >38-39k, the US open, failed to hold the H4 trend lower for days (and possibly days). weeks) of range.
Just a few thoughts. pic.twitter.com/TasEwVS5gx
— Beer (@pierre_crypt0) June 21, 2022
When it comes to stocks, data from Bloomberg showed that Bitcoin was actually rapidly reducing its correlation with the Nasdaq 100 in particular. A potential upside could come in the form of Bitcoin trading less like a tech stock, bolstering its ability to withstand monetary tightening from central banks.
As TSWT reported this week, global equities are currently facing their worst quarter in history.
#BitcoinsThe close relationship with tech stocks, fueled by declines both amid Fed hikes and high inflation, is falling amid the crypto rout. Bitcoin’s 20d correlation to the Nasdaq 100 has fallen from around 0.88 in early May to lows of 0.30 now, BBG calculated. pic.twitter.com/0j3fRb6gtJ
— Holger Zschaepitz (@Schuldensuehner) June 21, 2022
“The fall in risk assets in 1H is driving inflation at a blistering pace, which may translate into pre-pandemic deflationary forces resurfacing in 2H,” added Bloomberg Intelligence’s Chief Commodity Strategist, Mike McGlone, in part of a tweet. job June 20.
“The main beneficiaries of this scenario could be gold, Bitcoin and long-term US Treasury bonds.”
McGlone also wonders if stocks were “too hot” against a “maturing bitcoin.”
SHIB headlines altcoin rebound
On altcoins, relief was also visible as Bitcoin surged forward.
Related: It’s Not Hodling! More than 50% of Bitcoin addresses still in profit
The top fifty cryptocurrencies by market capitalization, however, were led by a surprise mover in the form of Shiba Inu (SHIB).
The meme-based tribute to Dogecoin (DOGE) rose 20% on the day after its namesake received further assurances of support from Tesla CEO Elon Musk.
Elsewhere, Ether (ETH) was approaching $1,200 at the time of writing, also its highest since June 16 thanks to daily gains of 5%.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of TSWT.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.