The times are rough for the cryptocurrency sector as a whole, including its largest asset by market capitalization – Bitcoin (BTC) – which has been struggling to hold support above the $19,000 mark for some time now, leading crypto analysts to try and predict its future behavior.
As it happens, Kaleo, a popular crypto trader and the co-founder of LedgArt, has suggested that Bitcoin could reduce its correlation with the stock market. The analyst drew this conclusion using technical analysis (TA) to compare the performance of the flagship crypto to other assets in a tweet on October 14.
According to Kaleo’s explanation:
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“Not only does Bitcoin look solid vs USD, it’s on the verge of breaking above a key resistance in the lower accumulation range it’s been stuck in the past four months.”
The crypto analyst emphasized that this means that the decentralized finance (DeFi) asset’s present activity “should give it a clear shot to outpace SPX back to the 2017 ratio ATH and higher.”
At the same time, Bitcoin volume seems to be climbing to bull market levels, increasing since August 1, with volume in USDT “going parabolic,” as observed by the crypto analyst behind the Bitcoin Archive twitter account on October 14.
Bearishness on the other side
Meanwhile, InTheMoneyStocks.com chief market strategist Gareth Soloway suggested that Bitcoin would likely correct further towards $3,500 in what he called the ‘worst case scenario’. Interestingly, he also cautioned that the divergence from the stock market would not come any time soon.
Earlier, Solloway also expressed his bearish belief that the price of Bitcoin might sink “another leg lower to $12,000 to $13,000,” because “when you see the dollar continuing to stay at 20+ year highs, and it continues to grind up, it just kills all risk assets.”
Bitcoin price analysis
As things stand, Bitcoin is currently trading at $19,598, up 3.10% on the day, but still down 1.93% across the previous seven days.
At the same time, Bitcoin’s market capitalization at press time stood at $375.68 billion, according to CoinMarketCap data retrieved by Finbold on October 14.
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