Since the Coronavirus pandemic began in the second week of March, experts have looked into the correlation between the price of bitcoin and that of the global financial market in general. Since the surge of the pandemic, the digital assets lowest point was reached with the S&P 500, and its correlation can be seen in a chart published for both assets.
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S&P 500 recorded a new all-time high in April after it made a 4% rally on Tuesday with Gold reaching an eight-year high in the financial market. With this new development in the financial market, it was reported that leading cryptocurrency bitcoin barely moved in the digital market with experts asking if this is a bearish sign for the flagship crypto. Even though most experts believe it could indicate a weakness on the part of the digital asset, some of them have been quick to attribute it to decoupling from the correlation.
Bitcoin currently trades between $6,700 and $7,000 mark despite making a surge to jump to $7,200 and making a massive drop to record a $6,600 low in recent weeks. The current surge-drop movement has been the highlight of the behavior of the cryptocurrency in the past few weeks. Bitcoin RSI figure is currently placed at around 50 along a receding point of volume because it doesn’t like to stay at a position for a long time. A break out from its present RSI figure is expected to happen pretty soon.
In case the bitcoin $6,800 mark breaks down, the surge could be around a $6,600 mark. Taking a look at a chart published which showed a four-hour range, it shows that a head and shoulder pattern is visible and a target of $5,700 is predicted once the $6,600 falls in the coming weeks. According to a data released by CoinGecko, it shows that the current total market capitalization stands $192 billion and bitcoins’ total market capitalization is valued at $123 billion with BTC dominance index placed at 64%.
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Levels To Watch Out For And Possible Targets
Support/Resistance Level: With Bitcoin trading around $6,800 and $7,000 for the past few days, experts have noted that provided the $6,800 mark breaks down, then the next support is around $6,550- $6,600. The next support levels have been noted to be around $6,000 – $6,200 mark low. If the $7,000 mark descends then its price support/resistance level should be around a $7,000- $7,200 mark high.
RSI Indicator: Bitcoin currently has its RSI placed around 50 and would show a steady movement provided it makes a surge or it drops to a low.
Trading Volume: With another significant move expected in the coming weeks, the trading range for Bitcoin is expected to be tight.