Bitcoin faces pressure with a 14% decline, dropping from $65,103 to $55,602 amidst fear and uncertainty in the cryptocurrency and US stock markets.
Recent data from Santiment suggests that Bitcoin is becoming less reactive to stock market fluctuations, indicating that its price movements may be more influenced by internal factors rather than broader market trends.
Changing Correlation Between Bitcoin and Stocks
While the S&P 500 had a challenging day, dropping by 2.16%, Bitcoin experienced a milder decline of 1.82%, showing a shift in correlation compared to previous market turmoil.
This changing dynamic indicates that Bitcoin is becoming less tied to stock market movements, potentially showcasing its strength and resilience against broader market pressures.
This shift could lead to Bitcoin’s price actions being driven more by its internal market dynamics rather than external influences, signaling a potential decoupling from traditional market correlations.
Bitcoin Price Movement Amid Uncertainty
Bitcoin is currently trading at $56,531 after reaching a weekly low of $55,602, with a need to surpass the 4-hour 200 moving average at $59,684 to reverse the downward trend.
Reclaiming the $60,000 level would be crucial for turning sentiment positive and attracting liquidity to drive the trend upwards. Failure to hold above $56,000 risks further decline, with $54,568 as the next key support level to watch.
Monitoring these critical levels will be vital for determining Bitcoin’s future direction and restoring bullish momentum in the market.
Featured image from Dall-E, chart from TradingView
